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 on biogenic carbon cycle is based on data and models from forested ecosystems even though urban nature and microclimate are very different to those in natural or forested ecosystems. There is a need for modelling tools that can correctly consider temporal variations of urban carbon cycle and take the urban specific conditions into account. The main aims of this study are to examine the carbon sequestration potential of two commonly used street tree species (Tilia x vulgaris and Alnus glutinosa) and their soils by taking into account the complexity of urban conditions, and evaluate urban land surface model SUEWS and soil carbon model Yasso15 in simulating carbon sequestration of these street tree plantings at different temporal scales (diurnal, monthly and annual). SUEWS provides the urban microclimate, and photosynthesis and respiration of street trees whereas the soil carbon storage is estimated with Yasso. Both models were run for 2002–2016 and within this period the 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 urban carbon cycle due to changes in environmental conditions and tree species. SUEWS simulated the stomatal control and transpiration well (RMSE < 0.31 mm h−1) and was able to produce correct soil moisture in the street soil (nRMSE < 0.23). Yasso was able to simulate the strong decline in initial carbon content but later overestimated respiration and thus underestimated carbon stock slightly (MBE > −5.42 kg C m−2). Over the study period, soil respiration dominated the carbon exchange over carbon sequestration, due to the high initial carbon loss from the soil after the street construction. However, the street tree plantings turned into a modest sink of carbon from the atmosphere on annual scale as the tree and soil respiration approximately balanced photosynthesis. The compensation point when street trees plantings turned from annual source to sink was reached faster by Alnus trees after 12 years, while by Tilia trees after 14 years. Overall, the results indicate the importance of soil in urban carbon sequestration estimations.