This article thoroughly examines the environmental damage caused by emis-sions from transportation and logistics vehicles in Odesa, within the framework of sustai-nable development objectives. It presents a detailed analysis of the main pollutants emitted by vehicles using gasoline, diesel, and liquefied petroleum gas, underscoring the significant contribution these emissions make to both local and global environmental issues. The study highlights the substantial volumes of greenhouse gases produced and the current lack of economic regulatory mechanisms to manage them effectively. Comparative analysis of global environmental tax rates on CO2 demonstrates Ukraine's position as having the lowest rate, suggesting inadequate regulatory measures. Through methodical calculations, it was deter-mined that Odesa's total CO2 emissions for the year 2022 amounted to 1,089,421.9 tons. This resulted in an estimated environmental damage cost of $893,326 USD, which remains uncompensated due to regulatory shortcomings.The findings emphasize the necessity of integrating such emission data into environ-mental damage assessments and implementing robust economic instruments to regulate emissions. Additionally, the paper explores strategic approaches to enhance emission regu-lations, including the potential introduction of more stringent environmental taxes or cap-and-trade systems, and suggests ways to align these with international environmental stan-dards. The broader implications of such regulatory adjustments are discussed, particularly their role in facilitating sustainable urban development. This comprehensive analysis aims to provide policymakers and urban planners with an understanding of the environmental stakes involved and practical steps towards achieving sustainability in urban transportation systems. By comparing Ukraine’s policies to international standards, the research offers valuable insights into potential reforms that can drive the sustainable future for Ukraine. Keywords: transportation and logistics vehicles, environmental damage, sustainable development, greenhouse gases, emission regulation, environmental tax.