The study analyzes the factors influencing the environmental sustainability and growth of hydrotreated vegetableoil (HVO) in Sweden. The major feedstocks identified in the HVO supply chain are palm oil, rapeseed oil,PFAD, tallow and tall oil. LCA studies reveal that feedstock grown on-purpose have larger life cycle GHGemissions than residual feedstock. However, due to the limited supply of residual feedstock there is a need to bemore dependent on domestic sustainable resources. The complexity of feedstock, origin, processing technologies,allocation approach, land use changes (LUC) and selection of environmental categories could result in variationsof the LCA results. To achieve national emissions target, policy instruments such as reduction obligations and taxincentives favor the market for HVO. However, to see more comprehensive results of the HVO development,research is needed to integrate the technological perspective from pilot scale to the commercialized market atlocal, regional and global level.