Over the last few decades, environmental sustainability has become a crucial global phenomenon. Therefore, policy analysts are curious to know the best solution for sustainability. Undoubtedly, the world has introduced several green steps to deal with environmental concerns, but the problem remains intact. Besides, the green role of biofuel energy is considerable because it helps to minimize environmental issues at the domestic level. Thus, to date, no equipment has been introduced to measure the sufficient level of biofuel utilization across the nations. For the first time, this study presents some core biofuel utilization factors that may portray biofuel utilization in major producing economies from 2000 to 2022. This empirical study uses the dynamic common correlated effect mean group (D-CCEMG), the augmented mean group (AMG), and IV-2SLS estimators to demonstrate the role of environment-related technology, financial development, labor force, environmental deterioration, tourism, and transport sector in biofuel utilization. The outcomes describe the positive role of environment-related technology, labor force, and financial development in biofuel utilization. On the other hand, environment deterioration and tourism significantly reduce biofuel utilization at the domestic level. However, the transport sector’s response (road and railway) remains uncertain because it is also negatively associated with biofuel utilization. Under the investigated outcomes, this study recommends some innovative implications to attain the threshold level of biofuel utilization.