This report highlights strategic areas of opportunity for the EU and its member states to use existing funds more efficiently while implementing public policies and incentives that can drive substantial progress toward meeting the EU’s transport decarbonization goals. It focuses on three specific transport challenges that are critical for the EU: i) accelerating the transition to zero-emission road transport technologies; ii) sustainable urban and metropolitan mobility; and iii) increasing the role of rail in helping decarbonize transport. While looking into these areas, the report offers a range of policy options to reduce GHG emissions, enhance efficiency, and use market instruments to promote sustainable transport solutions. Although the report targets the EU and its 27 member states, the recommended policy actions also apply to EU accession countries due to their close economic and geographical ties to the EU and their aspiration to become future member states.