The transportation sector has a significant impact on climate change, as it is responsible for 20% of the global greenhouse gas (GHG) emissions. This paper evaluates the role of electric vehicles (EVs) in achieving Europe’s ambitious target of carbon neutrality by 2050. The limitations of internal combustion engines (ICEs) along with the recent advancements, such as Euro 6 standards, are examined with a pseudo–lifecycle analysis (pseudo-LCA). While ICEs remain cost-effective initially, their higher long-term cost and environmental impact make them unsustainable. The benefits of EVs, including high energy efficiency, minimal maintenance, and reduced GHG emissions, are stated. However, challenges such as range limitations, charging infrastructure, and the environmental cost of battery production persist. Hybrid electric vehicles (HEVs) are highlighted as transitional technologies, offering improved thermal efficiency and reduced emissions, enhancing air quality in both urban and rural areas. The analysis extends to the use of alternative fuels, such as bioethanol, biodiesel, and hydrogen. These provide interim solutions but face scalability and sustainability issues. Policy interventions, including subsidies, tax incentives, and investments in renewable energy, are crucial factors for EV adoption. As EVs are pivotal to decarbonization, integrating renewable energy and addressing systemic challenges are essential for a sustainable transition.