Climate change is one of the greatest challenges facing our world, and forests will be part of the solution to mitigating and adapting to it. U.S. forests sequester 10 percent of all annual domestic carbon emissions, a figure that the U.S. Environmental Protection Agency estimates could be doubled if forest owners engaged in more carbon sequestration activities. Payments for forest carbon sequestration are an emerging opportunity for small forest owners to earn additional income and in turn to sustain both the economic and ecological values of the Northern Forest. Manomet is collaborating with the Northern Forest Center, Coastal Enterprises Inc., Community Forest Collaborative and private landowners to develop sustainable forestry and healthy forest-reliant communities across the Northern Forest region of Maine, New Hampshire, Vermont and New York. Manomet’s role is to develop payments for ecosystem services (PES) framework that allows carbon offset transactions as well as incentive payments to promote water quality.