This paper deals with the analysis of challenges and perspectives of the transition to electric vehicles as a sustainable solution for the transport sector in the context of global energy challenges and the need to reduce negative environmental impacts. With an emphasis on the energy situation in Bosnia and Herzegovina, the paper explores the possibilities of switching to electric vehicles (EVs) and analyses the effects of energy sources on CO2 emissions. The paper highlights the motivation to switch to EVs, driven by the need to reduce greenhouse gas emissions and rely on renewable energy sources. After analysing relevant studies, it is concluded that smaller and lighter electric vehicles have lower CO2 emissions and that the participation of renewable sources in electricity production reduces these emissions. The conducted analysis of the vehicle fleet specifies that the CO2 emissions of electric vehicles are not zero and that they depend on the source of electricity. Furthermore, other factors, such as the production of batteries, also play an important role in the overall environmental impact. Although the motivation to switch to electric vehicles is emphasized to reduce greenhouse gas emissions and use renewable energy sources, it has been shown that the CO2 emissions of electric vehicles (EVs) are not zero and significantly depend on the energy sources. Calculations performed on the vehicle fleet of the Federation of Bosnia and Herzegovina for the year 2021, using Copert as the tool, showed that vehicles driven by fossil fuels emit about 1.6 million tonnes of CO2. In comparison, if all vehicles were replaced with electrical ones, the CO2 emissions would be about 1.15 million tonnes. As for the required electricity to power EVs, it is calculated that the required amount would be about 1,539 GWh per year. This paper acknowledges the presence of emissions associated with battery production, storage, and disposal, as well as vehicles themselves. However, it does not delve into this issue in detail. Future research will aim to address this matter more thoroughly.