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Temperate grasslands account for c. 20% of the land area in Europe. Carbon accumulation in grassland ecosystems occurs mostly below ground and changes in soil organic carbon stocks may result from land use changes (e.g. conversion of arable land to grassland) and grassland management. Grasslands also contribute to the biosphere–atmosphere exchange of non‐CO₂ radiatively active trace gases, with fluxes intimately linked to management practices. In this article, we discuss the current knowledge on carbon cycling and carbon sequestration opportunities in temperate grasslands. First, from a simple two‐parameter exponential model fitted to literature data, we assess soil organic carbon fluxes resulting from land use change (e.g. between arable and grassland) and from grassland management. Second, we discuss carbon fluxes within the context of farming systems, including crop–grass rotations and …