Sugarcane farming for bioethanol production is increasingly promoted as a sustainable energy alternative to fossil fuels, aligning with global efforts toward a transition to renewable energy and realization of the Sustainable Development Goals (SDGs). This study examines the socio-economic and environmental impacts of sugarcane farming on rural households, focusing on the disparities between sugarcane and non-sugarcane households in terms of income, land size, resource access, food security, and energy poverty. The results reveal significant benefits for sugarcane households, including higher incomes, larger land sizes, and improved resource access, whereas non-sugarcane households face challenges such as land loss, reduced resource availability, and increased food insecurity. Land-use changes driven by sugarcane farming exacerbate environmental degradation, including deforestation and water pollution, and contribute to increasing food prices and energy poverty. Despite these challenges, sugarcane farming has the potential to drive rural development when managed inclusively and sustainably. This study emphasizes the importance of equitable policies, sustainable agricultural practices, and environmental regulations to ensure that biofuel production respects local livelihoods, preserves biodiversity, and supports broader sustainable development objectives. This study provides actionable insights for harmonizing energy transitions with socio-economic and environmental sustainability, contributing to a more balanced and equitable approach to renewable energy production.