Sweden aims to achieve carbon neutrality and become a fossil-free welfare society by 2045. At the national level, 39 of 290 Swedish municipalities have set a target to achieve net-zero emissions before 2045. The Swedish municipality of Växjö has set an ambitious climate goal: to become a fossil-fuel-free city by 2030. Växjö has long strived to become an eco-smart, green, and healthy, growing, and inclusive city, and create a community that stops causing any negative climate impacts by 2030. The study applies Energy Transition Theory to analyze the municipality’s strategies and social-technical challenges. A qualitative case study research method was used to answer three research questions: the current strategies, challenges (in technology, policies, and social aspects), and solutions implemented by Växjö Municipality. The policy document and municipal published reports from Växjö municipality provide the empirical data. Four online interviews were conducted to provide the first-hand data. The conclusion shows that Växjö has fallen behind in achieving carbon neutrality compared to other Swedish peer cities, and there are gaps between symbolic actions (e.g., green branding) and real sustainable practices. The transition to a just and inclusive framework is needed to reconcile the rhetoric with reality for Växjö. This research fills the gap in a deeper understanding of complex dynamics in a small municipality like Växjö to achieve carbon neutrality and a fossil-fuel-free ambition, contributes to understanding the complex dynamics of local sustainability efforts, and contributes to the growing literature on energy transition theory in a specific city. It also offers practical insights for other municipalities, especially small cities pursuing similar climate goals.