The technology to produce charcoal varies depending on the geographical context; from decentralized small-scale production in rural areas to high-performance industrial production. Charcoal is made from wood, heated in a low-oxygen environment, from a process called carbonization - the conversion from wood or plant material to carbon. The chemical process is called pyrolysis, where the wood composition changes due to elevated temperatures – from wood to charcoal.

Between 4 to 12 tonnes of dry wood are needed to produce one tonne of charcoal and it takes between several hours to several days for the wood to be transformed into charcoal, depending on technologies, wood species and wood humidity. During the production, greenhouse gases are emitted which have an impact on climate change.