Biochar application to agricultural soils is an interesting emerging technology with promising potential for long-term carbon storage, sustainable waste disposal, and soil fertility enhancement. Extensive information exists in the literature on the highly beneficial properties of biochar. Nevertheless, systematic application of biochar on European agricultural soils may have wide ranging policy implications as well as environmental and public health concerns. In this paper we critically review existing scientific evidence from a European policy perspective and identify research gaps for future comprehensive assessments of the policy, environmental, economic, and health implications of the systematic use of biochar in European agricultural soils.