Abstract: In the usage phase, diesel engines fuelled with diesel-biodiesel blends produced lower soot, HC and CO emissions. However, the environmental effects should include the greenhouse gas (GHG) emissions. GHG variations of biodiesel production from three generation feedstocks were analyzed based on the land use change (LUC). Adequate land use change could keep the biodiversity and did not cause the increase of GHG emissions. The choice for feedstocks of biodiesel in China was comprehensively analyzed based on the land use type, the precipitation and the oil contents and the cultivation conditions of plants. Then, the suggestions for biodiesel development in China were given. Results showed that China should thoroughly abandon the first generation feedstocks due to the lack of arable land. Jatropha curcas (J. curcas), Pistacia chinensis Bunge (P. chinensis), Comus wilsoniana (C. wilsoniana) and Xanthoceras sorbifolium Bunge (X. sorbifolium) were considered as the most promising feedstocks for biodiesel production. It is suggested to plant X. sorbifolium in sand lands in the north and northwest of China with less natural rainfall and the others in south and southwest of China. The concern for microalgae should be transmitted to engineering microalgae cultivated in wastewater. The microalgae biodiesel refinery should be developed together with wastewater proposal industry and coal fired power plants. Lastly, only natural gas-based or biomass-based methanol can be used for biodiesel production.