Abstract In a number of countries fuelwood is a crucial energy source which makes the rural sector a major supplier of energy. Besides being an environmentally benign energy source fuelwood is by far the most important renewable source being presently consumed. Rural populations depending on fuelwood are growing while fuelwood supplies are diminishing. Policy responses to grave and increasing woodfuel shortages have generally been insufficient and programmes inadequately tailored to the problem. Solutions to fuelwood shortages must be fully integrated into local farming systems and their rural development context. Such solutions must also take full account of the increased commoditization of woodfuels. A new impetus is required to policies which accord fuelwood proportionate importance within the broader context of its social, economic and environmental linkages. Closer intersectoral cooperation is needed between forestry, rural development, energy and environment.