Wetland tree stems have recently been shown to be a major source of methane emissions. However, the microbial communities associated within these stems (the caulosphere) and their contribution to biogeochemical cycling of methane and other compounds remain poorly understood. Here, we reveal that specialised microbial communities inhabit the bark of multiple Australian tree species and actively mediate the cycling of methane, hydrogen, and other climate-active trace gases. Based on genome-resolved metagenomics, most bark-associated bacteria are hydrogen metabolisers and facultative fermenters, adapted to dynamic redox and substrate conditions. Over three quarters of assembled genomes encoded genes for hydrogen metabolism, including novel lineages of Acidobacteriota, Verrucomicrobiota, and the candidate phylum JAJYCY01. Methanotrophs such as Methylomonas were abundant in certain trees and coexisted with hydrogenotrophic methanogenic Methanobacterium. Bark-associated microorganisms mediated aerobic oxidation of hydrogen, carbon monoxide, and methane at concentrations seen in planta, but under anoxic conditions barks could become a significant source of these gases. Field-based experiments and upscaling analysis suggested that bark communities are quantitatively significant mediators of global biogeochemical cycling, mitigating climatically-active gas emissions from stems and contributing to the net terrestrial sink of atmospheric hydrogen. These findings highlight the caulosphere as an important new research frontier for understanding microbial gas cycling and biogeochemistry.