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Biofuels are promoted in many parts of the world. However, concern of environmental and social problems have grown due to increased production of biofuels. Therefore, many initiatives for sustainability criteria have been announced. As a part of the European Union (EU) renewable energy promotion directive (RED), the EU has introduced greenhouse gas (GHG) emission-saving requirements for biofuels along with the first-ever mandate methodology to calculate the GHG emission reduction. As explored in this paper, the RED methodology, based on life-cycle assessment (LCA) approach, excludes many critical issues. These include indirect impacts due to competition for land, biomass and other auxiliary inputs. Also, timing issues, allocation problems, and uncertainty of individual parameters are not yet considered adequately. Moreover, the default values provided in the RED for the GHG balances of biofuels …