Among the environmental challenges, which humanity is facing today, there are the threat of global climate change, unsatisfactory air quality, and the fact that the resources of fossil fuels are finite. Biofuels have long been at the top of international agenda as a possible solution to all the three issues. The present project is a timely contribution to the research of the law of biofuels. The purpose of the investigation is to analyze the use of law as a means to implement the ambitious policy on biofuels. In this, I investigate and evaluate in what respects legal systems promote respectively restrain production and trade in biofuels in transport sector, identify efficient and less efficient legal constructions and discuss possibly successful legal strategies. The scope of the topic includes the EU level, the international level and the national level. It comprises legislation on the production and trade in biofuels aimed as fuels for motor vehicles.