| Summary: | Thanks to the allocation methods, i.e., the division of the total GHG emissions between each of the products generated in the production of biofuels, it is possible to reduce the emissions of these gases by up to 35% in relation to the production and combustion of fuels derived from crude oil. As part of this study, the biodiesel production process was analyzed in terms of greenhouse gas (GHG) emissions. On the basis of the obtained results, the key factors influencing the emissions level of the biodiesel production process were identified. In order to assess the sensitivity of the results of the adopted allocation method, this study included calculations of GHG emissions with an allocation method based on mass, energy, and financial shares. The article reviews recent advances that have the potential to enable a sustainable energy transition, a green economy, and carbon neutrality in the biofuels sector. The paper shows that the technology used for the production of biodiesel is of great importance for sustainable development. The possibility of using renewable raw materials for the production of fuels leads to a reduction in the consumption of fossil fuels and lower emission of pollutants. It showed that during the combustion of biodiesel, the percentages of released gas components, with the exception of nitrogen oxides, which increased by 13%, were significantly lower: CO<sub>2</sub>—78%, CO—43%, SO<sub>2</sub>—100%, PM10—32%, and volatile hydrocarbons—63%. Moreover, it was found that biodiesel undergoes five times faster biodegradation in the environment than diesel oil.
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