This paper argues strongly that forestry generally - and in particular as a means of carbon storage – has an important role to play in the achievement of environmental protection, social development and economic development goals. Describing an "ecosystem services" approach the authors advocate the development of market mechanisms to reflect the value of forests as a provider of environmental services such as carbon storage and the conservation of biodiversity in addition to their traditional role in timber production.The authors call on governments, donors, NGOs and the private sector to work together to:develop new holistic approaches to environmental conservation and sustainable consumptionsupport the creation of the right institutional and policy conditions for the creation of appropriate "ecosystem services markets"make use of "financial movements" such as the Global Environment Facility (GEF) and Program on Forests (PROFOR) to ensure adequate allocation of financial resourcesform better linkages regionally and between developed, developing and transition countries particularly in the fields of information exchange, inventories, surveys, training and public awareness programmes