The implementation of funded afforestation, reforestation, sustainable forest management and avoided deforestation projects in developing countries needs to be increased. Implementation of such projects has the potential to deliver ecological benefits, social benefits and a means for reducing global green house gas emissions. International and national carbon markets have led to an increase in funding opportunities available for forest carbon related projects. There are two types of markets creating carbon credits: compliance and voluntary markets. This article seeks to explore two issues – firstly why do voluntary markets have more investment in forest projects then compliance markets, and secondly, what are the barriers preventing increased investment in forest projects under compliance and voluntary markets?