Green diesel, also known as paraffinic diesel, is a promising next-generation automotive fuel produced from non-edible or waste vegetable oil through alkali catalyzed transesterification, hydrogenation, and supercritical non-catalytic transesterification. The sustainability of green diesel technology relies on robust policy and acceptance among the stakeholders. Further, the economics of green diesel production technologies are strongly affected by the feedstock cost, hydrogen requirement, and the production capacity of green diesel and its by-product yields. Selecting an appropriate manufacturing location would be promising in decreasing the production cost and improving green diesel economics. Integrating a green diesel plant with a petroleum refinery would enable the utilization of process water, hydrogen, heat (for making steam), and other utilities. Further, the production capacity of the green diesel plant must be at least 0.1 million tons/year to avoid negative net return (or annual profit after the tax) and a more extended payback period. Moreover, the sustainability of vegetable waste-to-green diesel technology also needs the policymakers’ fruitful decision on subsidy and tax exemption for green diesel. With the new specification of paraffinic diesel (EN 15940) by European countries, researchers and industries around the globe are looking for the best technological options for a suitable choice for its commercial production.