Detailed organic geochemical and carbon isotopic (d13C and D14C) analyses are performed on permafrost deposits affected by coastal erosion (Herschel Island, Canadian Beaufort Sea), and adjacent marine sediments (Herschel Basin) to understand the fate of organic carbon in Arctic nearshore environments. We use an end-member model based on the carbon isotopic composition of bulk organic matter to identify sources of organic carbon. Monte Carlo simulations are applied to quantify the contribution of coastal permafrost erosion to the sedimentary carbon budget. The models suggest that 36 % of all carbon released by local coastal permafrost erosion is efficiently trapped and sequestered in the nearshore zone. This highlights the importance of sedimentary traps in environments such as basins, lagoons, troughs and canyons for the carbon sequestration in previously poorly investigated, nearshore areas.