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Biomass has become important as an alternative to fossil fuels and as a means to decrease greenhouse gas (GHG) emissions, particularly in tropical regions such as Brazil. Therefore, the demand for energy crops has increased strongly, and among such crops, palm oil is distinctive because of its productivity and well-developed production techniques. This paper intends to evaluate crude palm oil's GHG balance through a life-cycle assessment approach. This study is based on the average data of an ideal palm oil system in the northern region of Brazil. In the production of crude palm oil, a large amount of CO₂ sequestration occurs during the growth of palm oil trees. In contrast, the greatest emissions are biotic CO₂, which returns to the atmosphere and emissions from fertilizer production. The GHG balance of an oil palm plantation is approximately −208 kg CO₂-equiv./1000 kg crude palm oil per year.