Charcoal is a vital source ofenergy for millions of people around the globeand one of the most commercialized resources in sub-Saharan Africa, yet policies to effectively govern the sector are lacking in many countries. Authorities in countries around the world tend to view charcoal production and use as an environmental and healthproblem. However, if managed properlycharcoal can provide a low-cost and locally available energy source that has the potential to become sustainable and contributesignificantly to poverty alleviation.This paper discusses the main obstacles to a sustainable charcoal value chain in sub-Saharan Africa and identifies key areas where interventions are required to improve sustainability while ensuring charcoal continues to provide livelihood benefits. It provides evidence of how a sustainable, transparent and properly regulated and governed charcoal sector could be part of the solution to energy access and economic challenges faced by many developing countries.The paper has been prepared as background to the workshop on ‘Sustainable Tree-derived Bioenergy in sub-Saharan Africa’1. While it summarises the most up-to-date literature on the issue at this time, with a strong focus on sub-Saharan Africa, some of the recommendations may be equally applicable to other charcoal-dependent developing countries.