Alternative energy policies targeting the adoption of hydrogen fuel cell vehicles (HFCVs) could have significant positive impacts on Malaysia's ability to meet both its carbon reduction goal and its energy security needs. The transport sector generally contributes heavily to carbon emissions, and is also difficult to decarbonize because of the costs associated with many greener options. This study explores the possibility of decarbonizing the Malaysian transport sector by promoting the use of hydrogen vehicles, and analyzes the adoption challenges and economic obstacles (especially public acceptance) associated with introducing HFCVs. This study contends that the adoption challenges of this new technology can be overcome through the use of development strategies outlined. This study also addresses the regulatory framework that Malaysia (and other countries) might use to overcome common policy adoption challenges of HFCVs.