We review and analyze markets for greenhouse gases, measurements of forestry carbon sinks, and implications of carbon credits for forest management. Currently forestry carbon offsets are transacted mainly on voluntary markets and to a lesser extent under the Clean Development Mechanism on regulated markets. The carbon price is much lower, yet more volatile on voluntary markets than on regulated carbon markets, but they are highly correlated. There are several tools available for measuring forestry carbon pools including afforestation/reforestation, avoided deforestation, sustainably managed forests, wood products, and fuel substitution; yet improvements and standardization of these tools are needed to meet the requirements for registries on carbon markets. The implications of carbon credits on forest management are multifaceted. At the ecosystem level, inclusion of carbon values will lead to more standing inventory and likely complement timber production in the long run. Given the joint provision of multiple forest benefits and the interlink among different forestry carbon pools, systematic approaches are imperative in developing forest GHG mitigation strategies as well as designing forest carbon account methods. © 2010 by Nova Science Publishers, Inc. All rights reserved.