The global transport sector accounts for approximately 28% of total energy consumption and 15.8% of greenhouse gas emissions worldwide, with road transport alone responsible for 11.8%. As the world seeks pathways toward carbon neutrality, methanol and ethanol emerge as promising alternative energy carriers capable of leveraging existing logistics infrastructure while reducing dependence on fossil fuels. This review examines the production pathways, lifecycle considerations, and costs associated with both alcohols. Global methanol production reached 111 million metric tons in 2022, and global ethanol production totaled approximately 93.3 million metric tons in 2024. In comparison, the yearly production of gasoline and diesel amounts to over 2 billion metric tons per year. The review evaluates fuel requirements across multiple transport modes, including passenger vehicles, light- and heavy-duty vehicles, maritime shipping, aviation, and rail, and assesses regulatory frameworks governing fuel standards in major markets, such as Europe, the USA, Brazil, China, Japan, and India. Current standards predominantly accommodate ethanol blending for spark-ignition engines, with fuels having concentration limits ranging from 3% in Japan to nearly pure ethanol in Brazil. While methanol applications remain more limited, the maritime sector, recent ISO 8217:2024 specifications and IMO interim guidelines have established frameworks for the use of methanol and ethanol as marine fuels. Aviation remains the most restrictive sector, with alcohol fuels explicitly prohibited in certified aviation fuels due to material compatibility and safety concerns. The review synthesizes current research on engine performance, emissions characteristics, and cold-start behavior for both alcohols in internal combustion engines and highlights ongoing European research projects that are advancing the adoption of alcohol fuels. To unlock the decarbonization potential of methanol and ethanol in the transport sector, coordinated policy support and continued technological innovation will be essential. As production scales and regulatory frameworks mature, these alcohol fuels may play an increasingly central role in the transition toward sustainable mobility.