The Clean Development Mechanism (CDM) is proposed to reduce greenhouse gas emissions and promote sustainable development. CDM forestry projects should contribute to mitiga- tion of climate change through afforestation and reforestation (A/R) activities on degraded land in developing countries. However, like other types of CDM projects, the forestry projects have encountered a number of concerns and critiques. Appropriate approaches and concrete aims to achieve long-term sustainability have been lacking, and reforms have therefore been called for. The aims of this paper are to examine the published information relevant to these concerns, and frame appropriate approaches for a more sustainable CDM. In this review, as a first step to tackle some of these issues, ecological restoration is suggested for integration into the CDM framework. Essentially, this involves the restoration of ecosystem supporting service (soil restoration), upon which forests regenerate naturally rather than establishing monoculture plantations. In this way, forestry projects would bring cost-effective opportunities for multiple ecosystem services. Potential approaches, neces- sary additions to the monitoring plans, and social impacts of ecological restoration in CDM projects are discussed.