The German government has commissioned the Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) to support its partner, the Ethiopian Ministry of Agriculture and Natural Resources (MoANR), in gaining knowledge in biochar-systems for improved soil and nutrient mangement in Ethiopian agriculture. Therefore, the aim of this report is to provide basic information about the principles of biochar systems and the prerequisites for a succesful implementation in Ethiopia. The fundamental questions this report deals with and tries to answer are: i) In which way and from which feedstock can biochar be produced in Ethiopia? ii) Which positive and negative effects does the application of biochar substrates have on the soils, the environment, the climate and on the livelihoods? iii) Which experiences have been made in Ethiopia with biochar systems? iv) Who could partner a prospective pilot project and where are the best conditions? v) Which policies and legal frameworks will affect the implementation of biochar systems?