The emergence of new financing mechanisms associated with the rise of carbon markets brings potential for increased investment in forestry. This paper explores the implications of these mechanisms for community forestry and suggests ways in which such finance may contribute to the pro-poor outcomes of community forestry. The paper also provides an opportunity for those working on the design of carbon financing mechanisms to draw on the experience of community forestry in structuring appropriate benefit systems. The main focus of the discussion is on 'Reducing Emissions from Deforestation and Forest Degradation'(REDD).