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Two-stroke diesel engines could be a promising solution for reducing carbon dioxide (CO2) emissions from light-duty vehicles. The main objective of this study was to assess the potential of two-stroke engines in achieving a substantial reduction in CO2 emissions compared to four-stroke diesel baselines. As part of this study 1-D models were developed for loop scavenged two-stroke and opposed piston two-stroke diesel engine concepts. Based on the engine models and an in-house vehicle model, projections were made for the CO2 emissions for a representative light-duty vehicle over the New European Driving Cycle and the Worldwide Harmonized Light Vehicles Test Procedure. The loop scavenged two-stroke engine had about 5-6% lower CO2 emissions over the two driving cycles compared to a state of the art four-stroke diesel engine, while the opposed piston diesel engine had about 13-15% potential benefit.