This study examines the opportunities and constraints associated with the development of second-generation biofuels in the Economic and Social Commission for Western Asia (ESCWA) region, based on a review of existing environmentally sound technologies that can be accessed by small and medium enterprises. Agricultural waste generated by three sectors of importance to the ESCWA region is targeted for analysis--namely, the olive oil, sugar (from sugarcane and sugar beet), and dairy industries. Country case studies are offered to elaborate the analysis-based financial and environmental assessments, and a series of recommendations are provided that are aimed at assisting decision makers and entrepreneurs to pursue developments in the second-generation biofuel sector using environmentally sound technologies.