We proposed the carbon sink project called “Carbon Sequestration by Forestation and Carbonization (CFC),” which involves biomass utilization and land conservation by incorporating the products of biomass carbonization into the agents for soil improvement, water purification, etc. Our purpose was to demonstrate the potential of the CFC scheme for carbon sequestration, particularly carbon storage in soil. Case studies were conducted in both developing and developed countries. 1. In southern Sumatra, Indonesia, 88,369 Mg-C year−1 of wood residue from a plantation forest and excess bark from a pulp mill would be converted into 15,571 Mg-C year−1 of the net carbon sink by biochar for soil improvement. The fixed carbon recovery of the system is 21.0%. 2. In a semiarid region in western Australia, the carbonization of wood residue was incorporated with multipurpose projects of a mallee eucalyptus plantation that involved the function of salinity prevention. During the project period of 35 years, the total carbon sink would reach 1,035,450 Mg-C with 14.0% by aboveground biomass, 33.1% by belowground biomass and 52.8% by biochar in soil. 3. In southern Kyushu, Japan, the study was focused on the effective use of surplus heat from a garbage incinerator for carbonizing woody materials. Sawdust of 936.0 Mg-C year−1 would be converted into the net carbon sink of 298.5 Mg-C year−1 by carbonization, with the fixed carbon recovery of the system being 31.9%. Consequently, the CFC project could encourage the creation of a carbon sink in soil. However, we recognize that the quality standard of biochar, the stability of biochar in soil, and the methods for monitoring biochar utilization must be clarified before incorporating biochar carbon into the carbon credit system.