ABSTRACT Clear-cutting is an extensively used silvicultural method in the Nordic and Baltic countries, which strongly influences the site’s carbon (C) budget. In the current study, C budgets for a young silver birch stand chronosequence (2–8-year-old) were compiled using the C budgeting method. High variability of annual NEP between stands of similar ages occurred, as the C accumulation ability of young stands was site specific. Heterotrophic respiration (Rh), the main C efflux from the ecosystem, varied between (3.7 and 6.3 t C ha−1 yr−1) across all stands. Modelling of the annual NEP dynamics across the chronosequence revealed the C compensation point at a stand age of 6 years. The estimated cumulative C loss for the period when NEP was negative was almost 5 t C ha−1 and the amount of lost C could have been recaptured already in a 10-year-old stand. The C sink capacity of the studied sites depended mostly on the production of herbaceous plants until the production of the new tree generation became the main driver of ecosystem’s net primary production. Hence, site’s C accumulation capacity largely depends on the density and quality of the new forest regeneration.