In this study we estimated the amount of carbon (C) stored in the forest growing stock and in wood-based products, and the C-sequestration capacity of the forest sector in Finland. Comparison of different management and utilization options for forest resources over the period 1990-2039 indicates that C is stored more efficiently in standing timber than in wood-based products. This implies that an appropriate increase in the length of the rotation in forestry could be optimal for balancing the needs of forest resources for C sequestration and timber production. Increased use of wood, based on sustainable use of forest resources, to substitute for fossil fuels and materials, could decrease the overall C emissions. Release of sequestered C back to the atmosphere can be delayed by prolonging product lifespans, by increasing recycling, or by disposing of discarded products in landfills. To delay C release, and affect the C balance, however, these changes should be substantial. In 1990, the net C balance of the growing stemwood stock was 5.5 Tg C/a, which increased to 16.3 Tg C/a by 2039 if in the future the use of wood would be at the level of the late 1980s. Increased use of wood resulted in a balance of 6.6 Tg C/a or -0.2 Tg C/a, depending on the extent of the use of wood. The average C balance in wood products for the whole period was 3.9, 5.6 or 6.6 Tg C/a, respectively. Changes in production capacity, and consideration of timber and product import and export decreased the average balance from 6.6 Tg C/a to 0.9-1.3 Tg C/a. By comparison, emission from the use of fossil fuels in 1990 C was 14.5 Tg C/a.