With the recent advances in technology and materials fields, biofuels are evolving into a new stage entitled “Advanced Biofuels.” Such biofuels provide huge potential in enhancing climate change fighting and growing energy security. The benefit of these developments depends on the efficiency of the national (such as China, United States, and Brazil) and international level (Europe Union, Africa, and Belt and Road Initiative countries) strategies. The main target of this chapter is to reflect deep knowledge and understanding of the role, impact, and governance of advanced biofuels, with sustainable approach. We aim to provide a clearer and cumulative understanding of the specific nexus between advanced biofuels, sustainability, and the practical framework required to boost the transition from the current to modern world with a critical and practical approach. According to the overall conclusion of this comprehensive study, sustainability gaps are to be expected during the initial phases of the priorities for advanced biofuel development and that, while sustainability policies and incentives will help to develop a market for those fuels, regulatory measures will also be necessary to proactively address likely short-term validity and credibility issues. Finally, this study provides guidelines to design and implement policies for the sustainable production of advanced biofuels.