Decisions concerning future land-use/land cover change stand at the forefront of ongoing debates on how to best mitigate climate change. In this study, we compare the greenhouse gas (GHG) mitigation value over a 30-year time frame for a range of forest recovery and biofuel production scenarios on abandoned agricultural land. Carbon sequestration in recovering forests is estimated based on a statistical analysis of tropical and temperate studies on marginal land. GHGs offset by biofuel production are analyzed for five different production pathways. We find that forest recovery is superior to low-yielding biofuel production scenarios such as oil palm and corn. Biofuel production scenarios with high yields, such as sugarcane or high-yielding energy grasses, can be comparable or superior to natural forest succession and to reforestation in some cases. This result stands in contrast to previous research suggesting that restoring degraded ecosystems to their native state is generally superior to agricultural production in terms of GHG mitigation. Further work is needed on carbon stock changes in forests, soil carbon dynamics, and bioenergy crop production on degraded/abandoned agricultural land. This finding also emphasizes the need to consider the full range of social, economic, and ecological consequences of land-use policies.