The global market for Green Diesel was valued at US$37.0 Billion in 2024 and is projected to reach US$66.0 Billion by 2030, growing at a CAGR of 10.2% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Green Diesel market.
The drive toward net-zero emissions is propelling countries and companies to adopt low-carbon fuels, and green diesel is increasingly being recognized for its high greenhouse gas (GHG) reduction potential - often exceeding 80% compared to conventional diesel. Regulatory pressure in the form of carbon pricing, low-carbon fuel standards (LCFS), and renewable energy directives across the EU, U.S., and parts of Asia has positioned green diesel as a viable, scalable pathway for decarbonizing hard-to-abate sectors such as aviation, heavy-duty trucking, and marine transportation.
In parallel, the diversification and optimization of feedstock supply chains are playing a pivotal role. Innovations in feedstock pretreatment, lipid conversion efficiency, and feedstock flexibility have enabled producers to expand beyond traditional sources to include waste streams and algae-based lipids. This feedstock agility is crucial for managing input costs and reducing competition with food-grade oils. Additionally, the emergence of feedstock certification frameworks such as ISCC (International Sustainability and Carbon Certification) is fostering transparency and traceability in sustainable fuel production, boosting stakeholder confidence and regulatory compliance.
Geographically, the United States is a frontrunner in green diesel adoption, led by California’s LCFS and federal renewable fuel standards. Europe follows closely, with countries like the Netherlands, Sweden, and Finland supporting renewable diesel through tax incentives and blending mandates. Asia-Pacific is also showing early signs of expansion, particularly in Singapore, Japan, and South Korea, where low-emission mandates and refinery conversions are gaining traction. Latin America, with its abundant bio-feedstock resources, is increasingly viewed as a potential growth hub, although regulatory frameworks remain under development.
In terms of end-use dynamics, the increasing preference for low-carbon liquid fuels in heavy transport, off-road machinery, and aviation is expanding demand beyond traditional biodiesel markets. Fleet owners and industrial users are embracing green diesel as a drop-in, infrastructure-compatible solution that meets both emissions compliance and fuel performance requirements. Moreover, favorable regulatory frameworks - such as renewable fuel credits, LCFS schemes, and blending mandates - are providing strong financial incentives for both producers and consumers. The growing alignment of corporate sustainability goals with clean fuel procurement strategies is also pushing adoption, as businesses seek measurable, immediate reductions in carbon intensity without operational disruption. These factors collectively ensure that green diesel will remain a crucial component of the global clean energy transition, especially in sectors with limited electrification potential.
Segments: Type (Pure Form, Blended Form); Production Technology (Gasification, Pyrolysis, Other Technologies); Raw Material (Vegetable Oils, Animal Fats, Other Raw Materials); Application (Fuel, Power Generation, Other Applications).
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Green Diesel Market - Key Trends & Drivers Summarized
Why Is Green Diesel Gaining Global Momentum in the Energy Transition?
Green diesel, also known as renewable diesel or hydrotreated vegetable oil (HVO), is rapidly emerging as a key solution in the global decarbonization effort, especially in sectors where electrification remains challenging. Unlike traditional biodiesel (FAME), green diesel is chemically identical to petroleum diesel but produced from renewable feedstocks such as waste animal fats, used cooking oils, and non-edible vegetable oils through hydroprocessing technology. This compatibility allows it to be used in existing diesel engines and infrastructure without modification, making it an immediate, drop-in alternative for transportation, logistics, and industrial use.The drive toward net-zero emissions is propelling countries and companies to adopt low-carbon fuels, and green diesel is increasingly being recognized for its high greenhouse gas (GHG) reduction potential - often exceeding 80% compared to conventional diesel. Regulatory pressure in the form of carbon pricing, low-carbon fuel standards (LCFS), and renewable energy directives across the EU, U.S., and parts of Asia has positioned green diesel as a viable, scalable pathway for decarbonizing hard-to-abate sectors such as aviation, heavy-duty trucking, and marine transportation.
How Are Production Technologies and Feedstock Innovations Accelerating Market Growth?
Technological advancements in hydroprocessing and refinery integration are significantly enhancing the scalability and cost-competitiveness of green diesel production. Many conventional oil refineries are now being converted into renewable fuel facilities, utilizing hydrogenation and isomerization processes to convert lipid-based feedstocks into high-quality diesel with performance characteristics equal to or better than petroleum-based fuels. This shift is reducing capital investment barriers while enabling faster market entry for energy majors and biofuel producers.In parallel, the diversification and optimization of feedstock supply chains are playing a pivotal role. Innovations in feedstock pretreatment, lipid conversion efficiency, and feedstock flexibility have enabled producers to expand beyond traditional sources to include waste streams and algae-based lipids. This feedstock agility is crucial for managing input costs and reducing competition with food-grade oils. Additionally, the emergence of feedstock certification frameworks such as ISCC (International Sustainability and Carbon Certification) is fostering transparency and traceability in sustainable fuel production, boosting stakeholder confidence and regulatory compliance.
Which Industries and Regions Are Driving Demand for Green Diesel?
Demand for green diesel is rising sharply in transportation-intensive industries, particularly in commercial road freight, public transit fleets, agriculture, mining, and aviation. Companies with aggressive decarbonization targets are increasingly adopting green diesel to reduce their Scope 1 emissions without disrupting operations or investing in new vehicle fleets. Municipal and corporate fleet operators, especially in Europe and North America, are using renewable diesel as a transitional fuel to meet local emissions mandates while preparing for eventual electrification.Geographically, the United States is a frontrunner in green diesel adoption, led by California’s LCFS and federal renewable fuel standards. Europe follows closely, with countries like the Netherlands, Sweden, and Finland supporting renewable diesel through tax incentives and blending mandates. Asia-Pacific is also showing early signs of expansion, particularly in Singapore, Japan, and South Korea, where low-emission mandates and refinery conversions are gaining traction. Latin America, with its abundant bio-feedstock resources, is increasingly viewed as a potential growth hub, although regulatory frameworks remain under development.
The Growth in the Green Diesel Market Is Driven by Several Factors…
The growth in the green diesel market is driven by several factors rooted in feedstock innovation, refinery conversion strategies, and application-specific adoption trends. On the technology front, advances in hydroprocessing efficiency, flexible co-processing capabilities, and hydrogen sourcing are reducing production costs and expanding output capacity. Many oil majors are investing in dedicated renewable diesel plants or converting traditional refineries to handle bio-based feedstocks, thereby creating a robust global supply network.In terms of end-use dynamics, the increasing preference for low-carbon liquid fuels in heavy transport, off-road machinery, and aviation is expanding demand beyond traditional biodiesel markets. Fleet owners and industrial users are embracing green diesel as a drop-in, infrastructure-compatible solution that meets both emissions compliance and fuel performance requirements. Moreover, favorable regulatory frameworks - such as renewable fuel credits, LCFS schemes, and blending mandates - are providing strong financial incentives for both producers and consumers. The growing alignment of corporate sustainability goals with clean fuel procurement strategies is also pushing adoption, as businesses seek measurable, immediate reductions in carbon intensity without operational disruption. These factors collectively ensure that green diesel will remain a crucial component of the global clean energy transition, especially in sectors with limited electrification potential.
Report Scope
The report analyzes the Green Diesel market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Type (Pure Form, Blended Form); Production Technology (Gasification, Pyrolysis, Other Technologies); Raw Material (Vegetable Oils, Animal Fats, Other Raw Materials); Application (Fuel, Power Generation, Other Applications).
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Pure Form segment, which is expected to reach US$41.5 Billion by 2030 with a CAGR of a 8.9%. The Blended Form segment is also set to grow at 12.5% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $10.1 Billion in 2024, and China, forecasted to grow at an impressive 13.6% CAGR to reach $13.4 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Green Diesel Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Green Diesel Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Green Diesel Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as Aemetis, Inc., BP plc, Cargill Incorporated, Chevron Corporation, Darling Ingredients Inc. and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 44 companies featured in this Green Diesel market report include:
- Aemetis, Inc.
- BP plc
- Cargill Incorporated
- Chevron Corporation
- Darling Ingredients Inc.
- Eni S.p.A.
- Exxon Mobil Corporation
- Gevo, Inc.
- Global Clean Energy Holdings, Inc.
- Greenergy International Ltd.
- Honeywell International Inc.
- Marathon Petroleum Corporation
- Neste Corporation
- NX100 Green Diesel & Lubricants
- PBF Energy Inc.
- Phillips 66
- Repsol S.A.
- Shell plc
- Topsoe
- Valero Energy Corporation
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What's Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSISCANADAITALYSPAINRUSSIAREST OF EUROPESOUTH KOREAREST OF ASIA-PACIFICARGENTINABRAZILMEXICOREST OF LATIN AMERICAIRANISRAELSAUDI ARABIAUNITED ARAB EMIRATESREST OF MIDDLE EASTIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
JAPAN
CHINA
EUROPE
FRANCE
GERMANY
UNITED KINGDOM
ASIA-PACIFIC
AUSTRALIA
INDIA
LATIN AMERICA
MIDDLE EAST
AFRICA
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aemetis, Inc.
- BP plc
- Cargill Incorporated
- Chevron Corporation
- Darling Ingredients Inc.
- Eni S.p.A.
- Exxon Mobil Corporation
- Gevo, Inc.
- Global Clean Energy Holdings, Inc.
- Greenergy International Ltd.
- Honeywell International Inc.
- Marathon Petroleum Corporation
- Neste Corporation
- NX100 Green Diesel & Lubricants
- PBF Energy Inc.
- Phillips 66
- Repsol S.A.
- Shell plc
- Topsoe
- Valero Energy Corporation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 470 |
| Published | May 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 37 Billion |
| Forecasted Market Value ( USD | $ 66 Billion |
| Compound Annual Growth Rate | 10.2% |
| Regions Covered | Global |
