This document provides a methodology for calculating the carbon balance of a forest management unit. This quantification methodology will demonstrate if the forest management unit is a net carbon sink or net carbon source. It provides information that can be used both on organizational and product levels. This calculation methodology includes system boundaries, geographical scale, time periods, allocation method, emission and removal factors etc. Emissions related to forest operations (e.g. fuels for machinery, the production and use of fertilizers) are not included in this document. NOTE Emissions related to forest operations are covered in part 1 of this standard series.