Callus was induced from various explants of Leucaena leucocephala, a fast growing, multipurpose, leguminous tree species. Callus obtained from hypocotyl segments showed high morphogenetic potential. Caulogenesis was achieved on B 5 medium supplemented with 6-benzylamino purine. Presence of α-naphthaleneacetic acid in the medium promoted 6-benzylamino purine induced caulogenesis. Callus obtained from hypocotyl segments retained the capacity to produce shoots upon subculturing even after four months from induction. The shoots obtained from callus were transferred to auxin containing media for rooting. Good root induction was achieved in the presence of 10 −6M 3-indolebutyric acid. Various morphologically distinct somaclonal variants were exposed to high concentrations of carbon dioxide. Somaclonal variants capable of growing well in the presence of high levels of carbon dioxide were selected. The majority of such variants were found to have high carbon dioxide assimilating capacity (as indicated by infra red gas analysis). Simultaneously methods were standardised for rapid multiplication of Leucaena leucocephala through apical bud and nodal cultures. Best apical bud and axillary bud sprouting was achieved on B 5 medium supplemented with 6-benzylaminopurine. Subsequent to multiplication, the efficient carbon dioxide assimilating variants can be used for afforestation and reforestation purposes in barren lands. This is likely to be one of the best methods, that can be employed safely, for alleviating the problem of global warming.