Climate change is widely recognized as a global physical phenomenon and remains a subject of extensive debate among scientists, policymakers, and the public. The continuous rise in atmospheric CO2 concentrations, primarily driven by human-induced activities, is a major contributor to this crisis. In response, global efforts are underway to balance carbon emissions through diverse strategies aimed at achieving a carbon-neutral future. Carbon neutrality has thus emerged as a critical pathway for mitigating climate change and advancing environmental sustainability. This chapter examines the conceptual framework, interconnections, and practical implications of achieving carbon neutrality and promoting environmental sustainability. It offers a critical analysis of key drivers, sector-specific strategies, and governance mechanisms essential for attaining net-zero emissions. These include the deployment of renewable energy, the implementation of nature-based solutions, the promotion of sustainable land use, and the decarbonization of the industrial and transportation sectors. Additionally, it addresses the socio-economic and institutional challenges that hinder progress toward carbon neutrality, particularly in terms of equity, technological access, and policy coherence. It further emphasizes the pivotal role of scientific advancements, technological innovations, and integrated policy frameworks in driving systemic transformation to support effective climate action and sustainable development. Ultimately, it underscores the synergies between carbon neutrality and the Sustainable Development Goals (SDGs), advocating for comprehensive and inclusive approaches that align with the objectives of environmental sustainability and broader development priorities.