This paper presents an explanatory framework of how greenhouse gas emissions offsets produced from natural and planted forests (‘carbon forestry’) feature in voluntary and regulated carbon markets. An introduction to the convoluted policy malaise surrounding the use of forests in regulated carbon markets is also presented. Whilst there are many opportunities and potential benefits of using forests to produce offsets, relatively few carbon forestry projects currently exist, particularly in regulated carbon markets. This seems due to financial, institutional and administrative obstacles, with prohibitive transaction costs often cited as the most prominent constraint to expanded carbon forestry development. The papers in this special issue present a wide coverage of carbon forestry development policy issues. The special issue provides a unique insight into the state of carbon forestry globally and highlights the pressing need for policy and market reform to facilitate more sustainable carbon forestry development.