The Paris Agreement aims to limit global warming to 1.5°C (compared to pre-industrial levels), requiring a 42 per cent reduction in CO₂ emissions by 2030 and reaching Net Zero by 2050. Given that cities account for over 70 per cent of global CO₂ emissions, and 55 per cent of the world’s population now resides in urban areas, local level municipal policy action is critical. However, Australia’s fragmented governance and limited intergovernmental coordination have hindered practical city-level climate actions. To achieve Net Zero cities in Australia that both significantly reduce emissions and implement removal or offsetting measures, lessons can be learned from successful international models to inform actionable strategies.

Australia has established ambitious climate goals, notably reducing emissions by 43 per cent by 2030 and reaching Net Zero by 2050. Nonetheless, several evaluations, such as those by Energetics and the Climate Change Authority, show notable discrepancies between these goals and actual policy. Real progress towards reducing emissions is hampered by the existing framework’s excessive reliance on offsets and high reliance on fossil fuels. Australia’s strategy is rated as insufficient by the Climate Action Tracker, highlighting the need for more significant, innovative reforms.

The policy coordination imperative

One major issue is Australia’s fragmented policy environment, which causes delays and gaps in city-level climate action due to uneven coordination across various levels of government.

Local governments play a crucial role in implementing actions at the community level, within the broader Net Zero framework set by the Commonwealth Government. Although the national Net Zero Plan sets high-level objectives, local councils are tasked with tailoring these to local needs, particularly through community-driven emissions reductions in sectors such as construction and sustainable energy production. However, they rely on guidance and resources from state or federal governments to achieve these goals, given that the Commonwealth focuses primarily on sectoral targets at the national level.

In NSW, the Office of Energy and Climate Change empowers local governments through resources such as the Net Zero Community Emissions Guide, which provides frameworks for councils to set emissions reduction targets and strategies. The state government’s Electricity Infrastructure Roadmap also encourages councils to adopt renewable energy, offering tools and financial assistance to integrate these goals into local plans.

Councils in Australia’s largest CBDs, Sydney and Melbourne, are also recognised leaders in climate action. The City of Sydney has committed to Net Zero by 2035, focusing on reducing emissions in buildings, transportation and renewable energy. The City of Melbourne also has a robust climate plan targeting Net Zero emissions by 2040 and actively collaborates with local businesses and residents on energy-efficient initiatives, showcasing the potential impact of local leadership even in the absence of uniform, standardised national support.

While these are all important initiatives, a more cohesive and consistent policy approach across all levels of government is needed. According to the Australian Energy Council, efficient intergovernmental cooperation is essential for Australian cities to create robust climate action plans consistent with local, state, and federal objectives.

What’s working in Europe and beyond

Fortunately, Australian cities can draw inspiration from many precedents of successful urban climate policy internationally. European cities have led the way in adopting ambitious climate targets and policies to achieve Net Zero. Here are ten diverse yet highly effective approaches:

1. Copenhagen aims to be carbon-neutral by 2025 through renewable energy, extensive public transportation systems and stringent energy-efficiency building regulations.
2. Stockholm has focused on green urban planning, energy efficiency and sustainable waste management, earning it a reputation as a model for urban sustainability. The city aims to be fossil fuel-free by 2040.
3. Glasgow’s Financial Alliance for Net Zero (GFANZ) has implemented transition finance strategies to support low-carbon infrastructure projects, leveraging private sector investment to accelerate decarbonisation.
4. Amsterdam’s Climate Neutral Roadmap sets a target for carbon neutrality by 2050, with interim goals focusing on energy efficiency, circular economy principles and electric transportation.
5. Madrid has adopted Climate City Contracts that bind local and national governments in a commitment to sustainable development, focusing on green transport and reduced emissions from buildings.
6. Paris has expanded green spaces and promoted energy efficiency through its Climate Action Plan, aiming to reduce its emissions by 50 per cent by 2030 compared to 2004.
7. Valencia’s Climate Mission initiative aims for climate neutrality by 2030, integrating renewable energy and sustainable waste management across urban areas.
8. Helsinki targets carbon neutrality by 2035, focusing on green building regulations, renewable energy and a public-private initiative to lower city-wide emissions.
9. Berlin aims to achieve carbon neutrality by 2045, promoting solar power, energy-efficient buildings and electric vehicles.
10. London’s Green New Deal promotes Net Zero targets through building retrofits, improved public transportation and funding for green technology innovation.

These cities employ a combination of financial strategies, regulatory policies and binding contracts to accelerate climate action. For instance, Climate City contracts in Madrid and Valencia create direct accountability, linking city and national governments to shared targets. The success of transition finance initiatives, such as in Glasgow, also highlights the critical role of private sector investment and financial innovation in achieving urban climate goals. Together, these examples demonstrate that effective Net Zero strategies balance robust policy frameworks with strong financial and community support.

Actionable lessons for Australian cities

Enhanced intergovernmental coordination
Australia could adopt European-style methods of organised intergovernmental collaboration to solve governance issues. The Climate Partnership in Glasgow is a prime example of how national, regional and municipal governments may collaborate to achieve climate objectives. Australian cities could simplify climate planning by creating frameworks for cooperation and intergovernmental agreements, guaranteeing that local initiatives are in accordance with federal policy. With approximately 93 per cent of greenhouse gas emissions beyond the direct control of local authorities, a coordinated approach across all government levels is essential.

While European-style intergovernmental collaboration offers a valuable model, Australia’s federal structure presents unique challenges. Local governments here are statutory entities under state jurisdiction, meaning they have limited delegated powers compared to many major city governments abroad. Additionally, Australian city governments tend to be smaller, often without a single authority overseeing the entire urban area, as seen in some European or US cities.

Unified governance models for effective climate action
A unified government model that encourages cooperation between the federal, state and municipal levels would be advantageous for Australia’s cities. Coordinated governance promotes uniformity in climate objectives across the construction, energy, and transportation sectors, as shown by initiatives such as C40 Cities and NetZeroCities Europe. Cities will be in a better position to integrate policies across sectors and take more effective climate action if Australia can adopt a similar approach.

Unified governance models go beyond coordinated policy, embedding climate action directly into a seamless policy framework across all levels and sectors, creating uniform standards and objectives. Initiatives like C40 Cities help to standardise climate goals across cities, enabling integrated approaches across construction, energy and transportation.

Targeted financial mechanisms for low-carbon projects
Australian cities could fund urban decarbonisation projects if they adopted a structured financial system such as the GFANZ in Glasgow. To stimulate private sector investment in low-carbon projects, GFANZ emphasises the need for transition financing. The economic feasibility of decarbonisation in Australia might be developed through incentive programs for the transportation, building and renewable energy sectors based on the International Energy Agency’s Net Zero by 2050 guidelines. The UN’s climate action programs also support this by advocating for targeted financial mechanisms and incentives that enable countries to meet Net Zero targets across diverse sectors. While various funding opportunities already exist, they have primarily focused on a narrow, limited range of sectors. To achieve impactful, at-scale decarbonisation, funding must address all sectors comprehensively.

Role of research institutions in driving innovation
Research institutes are essential for the advancement of technology and the formulation of policy in prosperous Net Zero cities around the globe. More funding is needed to optimise the influence of Australia’s research universities that undertake work in this area. Research institutes supplement private sector innovation, especially in areas such as efficient building design, renewable energy and sustainable urban planning. By bridging technological and regulatory gaps and providing cities with the resources they need to reach emissions objectives, government investment in research collaborations would allow Australia to take advantage of state-of-the-art climate solutions.

Moving from intentions to action 
Australian cities could set the standard for global climate resilience. However, Net Zero goals will remain unachievable without effective governance, substantial funding and engaged collaborations with academic institutions. European cities could serve as a model for Australian policymakers, who should engage in targeted budgetary frameworks, promote organised intergovernmental cooperation and acknowledge the vital role of research institutions. Australian cities can go from intention to action, guaranteeing climate resilience and establishing themselves as leaders in the global movement towards Net Zero with well-informed and well-coordinated actions.

Dr Ehsan Noroozinejad Farsangi is a Senior Researcher at the Urban Transformations Research Centre, Western Sydney University, where he specialises in Smart, Resilient & Net-Zero Construction. He previously focused on novel net-zero housing solutions in North America at UBC Smart Structures in Canada and is an Associate Editor for several distinguished journals.

Professor Greg Morrison is the Lang Walker Endowed Chair in Urban Transformation and the Co-Director of the Urban Transformations Research Centre at Western Sydney University. Greg is a leader in environment and environmental engineering who has made demonstrable impact in Circular Economy, Net Zero, Living Labs, and climate adaptation and innovation.

Image credit: Nikada, Getty Images Signature