See our Livable Cities page for some of the many examples where consistent public and political enthusiasm has led to reduced car use, and better transport systems. There is no one size fits all approach, but there are some common themes.
30-40km/hour is a perfectly practical speed for urban transport. More than this unnecessarily degrades the quality of public space, and introduces unacceptable danger. Higher speeds make little difference to commuting times, as cars spend most of the time at intersections.
Cars can only a problem where we allow them to drive. Many European cities now enjoy substantial carfree central areas. In some circumstances, allowing car access at lower speeds, and giving way to other street users, can also work well.
Good walking and cycling infrastructure, priority to pedestrians and cyclists on road, bus rapid transit, light rail, high speed rail, light electric vehicles, integrated smart card ticketing systems, limits to urban sprawl, mixed use residential areas...
Tax on energy should reflect its environmental cost. Tax on new car sales should reflect the environmental cost of manufacturing and recycling. Road user charges should reflect the cost to public health, public safety, public space and the cost of road infrastructure.
Car sharing schemes are the obvious way to combine the requirements of environmental sustainability, with reduced ownership cost, and the practical benefit of occasional car use.