Hydropower is a key renewable energy source for Arunachal Pradesh, but its expansion poses significant environmental challenges, particularly concerning deforestation, biodiversity loss, and ecological imbalance. The Pakke Climate Change Declaration (PCCD) presents a framework for sustainable development, emphasizing conservation and community participation. This paper explores the role of community-based conservation initiatives in mitigating environmental impacts associated with hydropower dams in Arunachal Pradesh. By integrating forest protection, biodiversity conservation, and indigenous knowledge systems, this approach enhances sustainability while ensuring economic and social benefits for local communities. The paper also examines policy frameworks, challenges, and recommendations for strengthening subnational climate action.