Within the United States, biofuels are generally divided into ethanol and biodiesel, and are as an additive or replacement for transportation fuels traditionally provided by petroleum, including gasoline and diesel. Ethanol and biodiesel can be produced corn, soybeans, or other advanced or experimental feedstocks, including cellulosic materials, algae, and even seaweed.

Biofuels have several direct and indirect benefits for responding to climate change. In particular, when considering lifecycle impacts, biofuels can reduce greenhouse gases and increase carbon sequestration relative to traditional petroleum-based products. These reductions come through the way the feedstocks are grown (e.g., using practices that enhance soil carbon), quick growth period, and improved efficiency of their production facilities.