Since Sweden signed the Kyoto agreement, The Farmers Organisation in Norrbotten, Sweden, has worked to find solutions to trade carbon dioxide emission rights from forestry.This would create an incentive also for small forest owners to increase forest production.The county of Norrbotten covers 22% of the total area of Sweden and the actively managed forest land is about 3.6 million hectares.In the boreal ecosystem the forest grows faster when the carbon dioxide content increases up to a level of about 1400 ppm.Moreover, in forestry the take up of carbon dioxide increases proportionally to the number of leaves and needles and carbon capture increases with increasing tree growth.During a three year project, a proposal for a carbon trading scheme promoting more effective forest management with increased growth of the forest, and thus more binding of carbon dioxide, has been developed.The Swedish state forest company, Sveaskog, and 18 forest farmers in the Municipality of (O)vertorne(a), a small community on the Arctic Circle, have been involved in the project.The measures taken by Sveaskog and private forest owners over the last 2 years are estimated to result in about 60 000 ton more carbon dioxide being bound.These carbon dioxide credits have been traded between the forest owners and the mining company LKAB.The carbon dioxide emission trading system has been proven to be both long term sustainable as well as allowing small forest owners to be involved.The method is cost effective, gives a win-win situation to climate, biomass production, employment and local development, and could be introduced in global trading systems.