Diesel engines are right up there with hybrids in the fuel efficiency game. Take for instance to VW Polo BlueMotion which is rated 70mpg+ Highway. The Passat BlueMotion is worse but still an impressive 57mpg+ Highway.
Also consider that some biodiesel fuels are near 100% carbon neutral (such as hemp-based biodiesels), in that they sequester as much carbon dioxide from the air as they will eventually burn into once combusted.