The achievement of net-zero emissions is a major governmental challenge to ameliorate the adverse impacts of climate change, and to reduce the health risks associated with poor air quality. In Australia, the transport sector is a major contributor to particulate matter and greenhouse gas emissions, especially in urban areas. The Australian Capital Territory (ACT) Government recognises that one of the greatest sustainability challenges to achieving a carbon-neutral society with net-zero emissions is the transport sector because it contributes 60 percent of all emissions under its jurisdiction. The ACT is a suitable case study on climate change, energy policy, and transport emissions because its electricity is powered by renewable energy; its governance has included a continuous planning philosophy of integrating transport with land use. The methodology is based on identifying and summarising the international literature on net-zero emissions policy (n = 50), the relevant policy documents and reports by the Australian Government (n = 8) and by the ACT Government (n = 32). An appraisal of policy outcomes in the ACT is based on an analysis of quantitative and qualitative data. In a car-dependent city (77% of trips by private transport), the most realistic policies for achieving net-zero emissions are to encourage, through fiscal incentives and regulations, the adoption of electric vehicles for buses and private cars, electric or hydrogen vehicles for the commercial fleet, and regulations to phase out petrol- and diesel-powered vehicles.