The transport sector is one of the largest contributors to pollution and green-house gas emissions, significantly impacting the environmental situation and public health in Ukrainian cities. The current standards of transport safety, energy consumption, and environmental impact fall short of meeting modern requirements. This article is focused on analyzing the policies and legislation of the European Union regarding the implementation of the European Green Deal within the transport sector, as well as exploring proposals for the decarbonization of various modes of transport in Ukraine, the use of alternative low-carbon fuels, and recommendations for Ukraine's integration into the European Green Deal framework. An in-depth analysis was conducted to assess the alignment of Ukrainian state policy with the principles of the European Green Deal, identifying both the potential risks and benefits for Ukraine's transport sector in the context of these principles. Additionally, the Authors propose a range of measures aimed at fostering sustainable mobility in Ukraine. The primary objective of this study is to develop a comprehensive vision for the strategy required to decarbonize Ukraine's transport sector, with a particular emphasis on the railway system.