Woodfuels (firewood and charcoal) arethe dominant energy source and the leading forest productfor most developing countries. Representing 60 to 80 percentof total wood consumption in these nations, woodfuels oftenaccount for 50 to 90 percent of all energy used. Althoughwoodfuels are widely perceived as cheap and primitivesources of energy, commercial woodfuel markets arefrequently very large, involve significant levels offinance, and provide an important source of income throughthe supply chain for the rural poor. However, the woodfuelsector in many developing countries operates informally andinefficiently, using out-dated technology and deliveringlittle official revenue to the government. The unsustainableharvesting of woodfuels to supply large urban and industrialmarkets can also contribute to forest degradation anddeforestation. Given the low carbon development opportunitypresented by wood energy, predictions of significant growthin woodfuel demand make it vital that this industry isoverhauled and modernized using new technologies,approaches, and governance mechanisms. This report profilesthree promising models of commercial forestry that cancontribute to modernization and rationalization of the woodenergy sector in developing countries: (i) community-basedforest management (CBFM), (ii) private woodlots inSub-Saharan Africa, and (iii) forest replacementassociations (FRA) in Latin America.