Transportation and energy play an essential role in modern society. Since the Industrial Revolution, fossil fuels have enabled great advancements in human society. Within this process, Internal Combustion Engines Vehicles (ICEVs) played a significant role in guaranteeing reliable and affordable long-distance transportation. However, the subsequent increase of the Motorized Private Transport resulted in undesired effects such as pollution. One instrument in reducing the Greenhouse Gas (GHG) emissions of the transport sector is to shift from the conventional ICEVs toward zero local emission vehicles. Electric Vehicles (EVs) are being promoted worldwide as a suitable powertrain technology that could replace the ICEVs. However, unless combined with electricity from renewable generation technologies the EVs will not effectively reduce GHG emissions. Through the simulation of future transport and energy sector scenarios in Germany, the GHG emission reductions have been analyzed. Techno-economic and environmental characteristics for several powertrain technologies under several vehicles charging strategies are evaluated. The thesis explores the impact of charging EVs on the electrical grid. The result show that EVs using smart charging strategies that support Vehicle-to-grid (V2G) are capable of fulfilling mobility needs of users while providing substantial flexibility to the electrical grid. Such flexibility can facilitate the future expansion of non-dispatchable Renewable Energy Sources (RES).