Alternative fuel vehicles were investigated as a possible mitigation measure to reduce CO2 emissions. Fuel economies of several alternative cars were compared, and integrated CO2 emissions from fuel mining to consumption in Japan were calculated. The alternative fuel vehicles we investigated were methanol, compressed natural gas, electric, hydrogen, hybrid (internal combustion engine and motor), and fuel cell vehicles. Our calculations showed that a combined approach discharged the least amount of CO2 when compared to individual alternative fuel vehicles studied in this paper. The combined approach was to use methanol and electricity coming from a coal fired power plant. Methanol was produced from CO2 collected from the flue gas of the coal fired power plant and hydrogen originated from a non-carbon natural energy source. The MeOH-powered vehicle emitted 28.5 kg- CO2 per 100 km driven. Electricity generated at the coal fired power station could be supplied to the electric vehicles. The CO2 emission per 100 km driven was reduced to 16.7 kg by the combination of the methanol and electric vehicles. CO2 recycling for methanol production will be one of the CO2 mitigation strategies in the transportation sector, if hydrogen can be produced plentifully from renewable energy sources. The methanol vehicle is also advantageous when considering available infrastructures.