The distribution of forest vegetation and forest carbon sequestration potential are significantly influenced by climate change. In this study, a map of the current distribution of vegetation in Yunnan Province was compiled based on data from remote sensing imagery from the Advanced Land Observing Satellite (ALOS) from 2008 to 2011. A classification and regression tree (CART) model was used to predict the potential distribution of the main forest vegetation types in Yunnan Province and estimate the changes in carbon storage and carbon sequestration potential (CSP) in response to increasing temperature. The results show that the current total forest area in Yunnan Province is 1.86 × 10⁷ ha and that forest covers 48.63% of the area. As the temperature increases, the area of forest distribution first increases and then decreases, and it decreases by 11% when the temperature increases from 1.5 to 2 °C. The mean carbon density of the seven types of forest vegetation in Yunnan Province is 84.69 Mg/ha. The total carbon storage of the current forest vegetation in Yunnan Province is 871.14 TgC, and the CSP is 1100.61 TgC. The largest CSP (1114.82 TgC) occurs when the temperature increases by 0.5 °C. Incremental warming of 2 °C will sharply decrease the forest CSP, especially in those regions with mature coniferous forest vegetation. Semi-humid evergreen broad-leaved forests were highly sensitive to temperature changes, and the CSP of these forests will decrease with increasing temperature. Warm-hot coniferous forests have the greatest CSP in all simulation scenarios except the scenario of a 2 °C temperature increase. These results indicate that temperature increases can influence the CSP in Yunnan Province, and the largest impact emerged in the 2 °C increase scenario.