Abstract
During the last 10 years biofuel production and utilization in the European Union have become more extensive owing to support provided by the relevant EU Directives. Achievement of the main targets defined by Directives was not simple, being confronted with various barriers. Latvia is one of the EU member-countries that have set an ambitious goal as to the production of biofuel and its use in transport. The authors summarize the major achievements of the country in this area and analyze the main barriers to implementation of biofuels in the transport sector, providing an outlook on the current status of the bioenergy and the transport situation in Latvia.