E-Fuels, also known as synthetic fuels, present a promising opportunity for reducing greenhouse gas emissions across various transportation sectors. A recent report by the Transportation Energy Institute and Environmental Resources Management assesses the potential impact of E-Fuels, emphasizing their key benefits and significant challenges. These fuels are produced using renewable electricity, water, and captured carbon dioxide, offering a substantial advantage in compatibility with existing vehicles and fueling infrastructure. When sourced from renewable energy, E-Fuels can achieve greenhouse gas reductions of up to 99% compared to traditional fossil fuels. The primary obstacles to widespread adoption are scalability and cost. Currently, E-Fuel production costs are significantly higher than fossil fuels due to energy-intensive processes like green hydrogen generation. Although cost reductions are projected by 2040, advancements in technology and supportive policies are crucial for achieving these targets. Policy frameworks play a critical role in driving E-Fuel adoption globally. The EU and UK have introduced blending targets and penalties, fostering favorable conditions for E-Fuel use, especially in sectors like aviation. On the contrary, the US lacks similar mandates, creating uncertainty for domestic producers who may focus on exporting to markets with higher demand. E-Fuels are positioned as a complementary solution alongside battery electric vehicles (BEVs) and hydrogen fuel cells. While BEVs offer better energy efficiency, challenges like limited range and charging infrastructure hinder their widespread adoption. E-Fuels serve as an immediate pathway for decarbonizing existing internal combustion engine vehicles, particularly in heavy-duty transport. The report underlines key actions for policymakers to unlock the potential of E-Fuels, including setting clear decarbonization pathways, introducing blending mandates, and offering demand-side incentives. Standardizing assessment methodologies and coordinating with sectors like aviation and shipping are highlighted as crucial steps toward sustainable E-Fuels development. Overall, E-Fuels play a significant role in reducing greenhouse gas emissions in the transportation sector and bridging the gap between short-term needs and long-term environmental goals.