Earth kilns are still used for charcoal production in the Eastern Mediterranean and worldwide. Until 2016, around 1,600 tons of charcoal were produced in Israel and the Palestinian territories in about 400 traditional earth kilns that were operated in about the same manner for the last 400 years. The intense air pollution caused by this indigenous practice resulted in higher mortality rates among the workers and the population living close to the charcoal production sites. The air pollution was found to migrate beyond 50 km, causing cross-boundary pollution in Jordan. Since the charcoal production industry processes surplus wood into solid fuel, which is used for heating and cooking, it was imperative to shift this industry to a new type of non-polluting charcoal production system. To upgrade this industry to 21^st century standards development and implementation of a new ecological retort system (ERS), became possible through a combined effort by Israeli researchers and Palestinian manufacturers. Comparing the ERS to the old earth kilns suggests that the wood-to-charcoal transformation efficiency is about 10% higher in the ERS and the process duration is half a day vs. about three weeks in a traditional kiln. Generally, ERS is about two orders of magnitude more productive than the traditional earth kilns. The ERS combines a simple operational scheme and higher charcoal yield than a traditional kiln, leading to an increase in the revenue to the charcoal makers, also through byproducts bearing economic value such as electric energy and wood vinegar.