Digital transformation plays a major role in our efforts to reach net zero by 2050. According to the World Economic Forum (2022), digital solutions could reduce global emissions by 20%. Urban logistics is pivotal in accelerating sustainable and liveable cities, connecting a large and diverse community of retailers, Logistics Service Providers (LSPs), consumers, infrastructure managers, vehicle manufacturers, real estate, local authorities, etc. Enabling technologies, such as AI, Automation, Digital Twins and Blockchain, empower systemic and seamless urban logistics and planning digital transition to the so-called net-zero economies and are ready to serve the impactful solutions. However, significant barriers are still impeding implementation and larger acceptance and scale-up of innovative solutions, although urban logistics players recognise the importance and urgency for improving efficiency and decarbonising freight transport. Recent trends record a lack of trust among players, often having diverse priorities and values, which can feed hesitancy to collaborate, share assets and information. Therefore, decarbonisation and digitalisation paths cannot be treated as isolated anymore. When re-thinking sustainable and data-driven urban logistics, a “twin transition” challenge is the urgency to limit the urban impact—generated by traffic jam, noise and GHG emissions, while contemporarily enabling innovative trends and technologies. Unlocking the potential of data-driven solutions means decarbonising by digital boosting organisational efficiency and collaboration in urban logistics, while a sustainable, collaborative and affordable perspective to technology, data, infrastructures and governance in urban logistics leads to decarbonising of digital. The complexity of the interaction between green and digital technologies, and their impacts, requires accelerating the EU research agenda implementation, and the analysis of the main elements constitutes the objective of the chapter. A better exchange of information and real-world experiences among LSPs, retailers, local authorities, real estate and consumers, can help to build interest and trust in the decarbonisation path. The EU research and innovation presented in the chapter demonstrates that stakeholders have already heavily invested in decarbonisation efforts and thus accumulated valuable knowledge and experience.