Biofuels for transport are attracting considerable support from the European Union. However, the complexity of the biofuels industry and the diversity of actors create significant challenges for policy-making and governance. This paper explores the role of governance in the development of the biofuels industry in Europe focusing on Sweden and the UK. The purpose of this paper is to investigate the similarities and differences of governance activities in these countries, and to identify lessons for policy-makers on how to establish and expand (sustainable and competitive) biofuels for transport. Sweden and the UK are selected as they provide contrasting pictures of the biofuels industry in Europe.