The proposed EU Directive on the promotion of Renewable Energy stipulates that only biofuels that achieve greenhouse emissions savings of 35% will be eligible for inclusion with respect to meeting the 2020 target of 10% for the share of biofuels. This paper examines biodiesel for use in Ireland, produced from two different sources: indigenous rape seed and palm oil imported from Thailand. The palm oil system generates more biodiesel per hectare than the rape seed system, and has less parasitic demand. Greenhouse-gas reductions of 29% and 55%, respectively were calculated for the rape seed and palm oil systems. (C) 2008 Elsevier Ltd. All rights reserved.