In the last decade several scientific papers have dealt with the damages fossil fuels did to our environment. Carbon dioxide has been blamed the chief culprit since it is produced by the automobile fleet that uses diesel or gasoline as a fuel. As a result, several countries are implementing public policies aimed at the replacement of fossil fuels by renewable ones, such as biodiesel. Brazil has become one of them, since the biodiesel production has increased from 736m3 to 3,419,838m3 in less than ten years. Therefore, this paper intends to briefly review the literature on the history, evolution, and the environmental aspects of biodiesel in Brazil in order to show its positive economic impact on the Brazilian economy, in addition to showing how important this biofuel is to the environment by providing an overview of its advantages when compared to fossil diesel.