Although charcoal is the single most important energy source for millions of urban dwellers in Tanzania, being used by all tiers of society from laborers to politicians, it seems to be politically neglected and even unwanted, given that it is not considered as a possible mean to achieve long-term sustainable development, for example as a low-carbon growth option contributing to energy security, sustainable forest management, and poverty alleviation strategies. The largely unregistered and unregulated production and use of charcoal give reason to serious environmental concerns that call for a comprehensive reform of the sector: with Tanzania's total annual charcoal consumption being estimated at 1 million tons, the annual supply of wood needed to meet this demand is about 30 million cubic meters. Systematic initiatives trying to halt forest degradation and to make the sector more environmentally and economically sustainable are missing or have remained largely ineffective. Building on the World Bank's recent policy note on potential reforms of the charcoal sector in Tanzania, this report aims to facilitate the policy dialogue around charcoal sector reforms by providing analytical information on the political economy of the charcoal sector and on the potential poverty and social impacts of a sustainability-oriented reform agenda. There is no comprehensive policy, strategy, or legal framework in Tanzania addressing the charcoal sector.