The Government wants to halve emissions from transport by 2040 by using renewable fuel and reducing the distance people travel in vehicles.
It launched the New Zealand Transport Strategy at Parliament on Tuesday.
Transport Minister Annette King says the strategy sets out defined targets for the sector for the first time. She says it also sets a target of no more than 200 road deaths a year by 2040, and an increase in public transport to 7% of all trips.
The strategy coincides with the release of a policy statement setting out transport funding over the next six years.