Biomass wastes offer immense potential as a renewable energy source, holding the promise to replace fossil fuels for heat and energy generation, in particular for decentralized power production. Furthermore, the utilization of biomass promotes circular economy by enabling the conversion of local resources into useful products and energy. However, the conversion of biomass into end-use products and heat/energy is a complex process with multiple pathways, such as fluidized bed gasification, a well-established and efficient method for converting coal and biomass into heat. Despite its merits, this process is currently limited to industrial applications and encounters certain limitations and obstacles. Notably, the low energy density of biomass wastes and downstream pipe contamination from tar and polycyclic aromatic hydrocarbon (PAH) growth poses significant technological challenges. Nonetheless, a roadmap has been developed to guide the widespread adoption of fluidized bed gasification of biomass for decentralized power generation and climate mitigation. This book chapter delves into the opportunities and challenges of fluidized bed gasification as a viable option for decentralized power generation and climate mitigation through biomass waste conversion. The significance of well-crafted policies supporting renewable energy sources and optimizing fluidized bed gasifiers to achieve desirable end products are also emphasized.