Non-Road Mobile Machinery (NRMM) accounts for about 3% of total CO₂ emissions in both the U.S. and the EU. Due to their high-power demand and long operating missions in harsh environments, NRMMs are considered a hard-to-abate sector. Therefore, a pragmatic pathway toward decarbonization must involve a combined approach that integrates a wide range of technologies. Among them, powertrain hybridisation can play a crucial role in reducing CO₂ and pollutant emissions, leveraging the experience gained from the electrification of passenger cars and commercial vehicles. Within this framework, the present thesis aims to develop a virtual test rig to assess the potential CO₂ emission reductions of a skid-steer loader.