Abstract. Cities have become increasingly interested in reducing their greenhouse gas emissions and increasing carbon sequestration and storage in urban vegetation and soil as part of their climate mitigation actions. However, most of our knowledge of the biogenic carbon cycle is based on data and models from forested ecosystems, despite urban nature and microclimates differing greatly from those in natural or forested ecosystems. There is a need for modelling tools that can correctly consider temporal variations in the urban carbon cycle and take specific urban conditions into account. The main aims of our study were to (1) examine the carbon sequestration potential of two commonly used street tree species (Tilia × vulgaris and Alnus glutinosa) growing in three different growing media by taking into account the complexity of urban conditions and (2) evaluate the urban land surface model SUEWS (Surface Urban Energy and Water Balance Scheme) and the soil carbon model Yasso15 in simulating the carbon sequestration of these street tree plantings at temporal scales (diurnal, monthly, and annual). SUEWS provides data on the urban microclimate and on street tree photosynthesis and respiration, whereas soil carbon storage is estimated with Yasso. These models were used to study the urban carbon cycle throughout the expected lifespan of street trees (2002–2031). Within this period, model performances were evaluated against transpiration estimated from sap flow, soil carbon content, and soil moisture measurements from two street tree sites located in Helsinki, Finland. The models were able to capture the variability in the urban carbon cycle and transpiration due to changes in environmental conditions, soil type, and tree species. Carbon sequestration potential was estimated for an average street tree and for the average of the diverse soils present in the study area. Over the study period, soil respiration dominated carbon exchange over carbon sequestration due to the high initial carbon loss from the soil after street construction. However, the street tree plantings turned into a modest sink of carbon from the atmosphere on an annual scale, as tree and soil respiration approximately balanced the photosynthesis. The compensation point when street tree plantings turned from an annual source into a sink was reached more rapidly – after 12 years – by Alnus trees, while this point was reached by Tilia trees after 14 years. However, these moments naturally vary from site to site depending on the growing media, planting density, tree species, and climate. Overall, the results indicate the importance of soil in urban carbon sequestration estimations.