A spreadsheet model (CARBAL) has been developed to calculate the net carbon sequestration in the forest industry, using available information about the plantation forestry estate in New Zealand, and utilisation of this resource. The results indicate that the magnitude and duration of the net carbon benefit of planting radiata pine (Pinus radiata) forests in New Zealand will depend on many factors, including the afforestation rate and the combustion of fossil fuels during plantation operations. harvesting, transport and processing. Total emissions in the forest industry are estimated at 30-52 tonnes of carbon (tC) ha(-1) for a 30 year rotation. The carbon benefit of establishing a forest on pastoral land could be eroded by processing emissions within 100 years. Carbon storage in forest products has a minor impact in offsetting processing emissions, delaying the onset of a negative balance by 25 years. Net sequestration could be significantly increased if processing industries used forest biomass to become more self-sufficient in energy. Copyright (C) 1996 Elsevier Science Ltd.