This report was produced by the Working Group on biofuels of the International Panel for Sustainable Resource Management. It provides an overview of the key problems and perspectives toward sustainable production and use of biofuels. It is based on an extensive literature study, taking into account recent major reviews. The focus is on so-called first generation biofuels while considering further lines of development. In the overall context of enhancing resource productivity, options for more efficient and sustainable production and use of biomass are examined.