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The use of biofuel is essential for the reduction of greenhouse gas emission. This study highlights the use of biodiesel as a means of reducing greenhouse gas emission from the diesel engine of heavy-duty vehicles. Biodiesel is fatty acid methyl ester (FAME) obtained through ester exchange reaction by adding methanol to oil, such as rapeseed oil, soybean oil, palm oil, etc. The CO2 emission from combustion of biodiesel is defined to be equivalent to the CO2 volume absorbed by its raw materials or plants in their course of growth. On the other hand, however, operation of diesel engine with biodiesel is known to increase the NOx emission when compared with that with conventional diesel fuel. Then suppressing this NOx increase is regarded as a critical issue. This paper consists of two parts: comprehending the factors of NOx emission increase and improving this emission performance in a diesel engine fuelled with biodiesel.