The potential of palm-oil biofuels to reduce greenhouse gas (GHG) emissions compared with fossil fuels is increasingly questioned. So far, no measurement-based GHG budgets were available, and plantation age was ignored in Life Cycle Analyses (LCA). Here, we conduct LCA based on measured CO 2 , CH 4 and N 2 O fluxes in young and mature Indonesian oil palm plantations. CO 2 dominates the on-site GHG budgets. The young plantation is a carbon source (1012 ± 51 gC m −2 yr −1), the mature plantation a sink (−754 ± 38 gC m −2 yr −1). LCA considering the measured fluxes shows higher GHG emissions for palm-oil biodiesel than traditional LCA assuming carbon neutrality. Plantation rotation-cycle extension and earlieryielding varieties potentially decrease GHG emissions. Due to the high emissions associated with forest conversion to oil palm, our results indicate that only biodiesel from second rotation-cycle plantations or plantations established on degraded land has the potential for pronounced GHG emission savings.