In many developing countries, woodfuels are still commonly used for household cooking and heating and are also important for local processing industries. In many developed countries, wood-processing industries often use their wood by-products for energy production. In some countries, notably the Nordic countries, forest residues are increasingly used for industrial-scale electricity generation and heating. Several developing countries have enormous potential to produce energy from forests and trees outside forests, for both domestic use and export. However this potential is not often properly reflected in national energy-development strategies. This publication sets out principles, criteria and indicators to guide the sustainable use of woodfuel resources and the sustainable production of charcoal. It is designed to help policy- and decision-makers in forestry, energy and environment agencies, non-governmental and other civil-society organizations and the private sector ensure that the woodfuel sector reaches its full potential as an agent of sustainable development.