The City of Melbourne has been certified carbon neutral for Council operations, under the Commonwealth Government’s National Carbon Offset for the financial year 2011-12. 

To achieve this, the City offset 51,996 tonnes of greenhouse gas emissions which Council operations produced during the year.

The City is aiming to reduce its net greenhouse gas emissions to zero by 2020. To achieve this, the City is aiming to reduce emissions in the commercial sector by 25%, by 20% in the residential sector and 19% in the energy sector. In transportation, Melbourne plans to reduce emissions by 20% in public transport, by 15% in automobiles and to increase bicycle use by 100%.

Sydney City became the first carbon neutral city in Australia in 2011. In Victoria, the City of Yarrra (in the inner eastern suburbs of Melbourne) became Victoria's first carbon neutral council in late 2012. It was followed by Moreland City (in Melbourne's inner northern suburbs), early in March 2013.