The objective of this article is to analyze the Brazilian Biodiesel Policy (PNPB) and to identify the social and environmental aspects of sustainability that are present or absent within it. Biofuels, namely alcohol and biodiesel, have been increasing in popularity on a global scale due to their potential as alternative and renewable energy sources. Brazil, a vast country blessed with abundant natural resources and agricultural land, has emerged as a global leader in the production of biofuels. This article includes a brief analysis of the concept of sustainable development, which served as a basis to evaluate the Policy documents. Although PNPB's implementation, which began in 2004, is still within its initial stage, it was possible to identify and elaborate on the environmental and social aspects of the Policy, namely: the social inclusion of family farmers; regional development; food security; influencing the carbon and energy balance of biodiesel; promoting sustainable agricultural practices and a diversity of feedstock. (c) 2008 Elsevier Ltd. All rights reserved.