This study explores the integration of immersive virtual reality (IVR) in teaching carbon-neutral development, focusing on experiential learning. Utilizing a case study approach with the Hafencity project in Hamburg, Germany, the research evaluates IVR as an educational tool to deliver an immersive learning experience in carbon-neutral development and sustainable strategies. A multidisciplinary team designed the IVR experience, incorporating real-world case studies and leveraging state-of-the-art sustainable development practices. The experiment involved a diverse group of students who, through IVR, engaged with five critical modules of sustainability. The effectiveness of the IVR experience was assessed through questionnaires focusing on ease of use, perceived usefulness, and intention to use, employing a seven-point Likert scale. Results indicate that IVR significantly enhances understanding and engagement in sustainability topics, providing an effective educational environment that fosters active learning. This experiment contributes to the growing body of knowledge on IVR as a tool in sustainability education, pointing towards future developments such as incorporating the memory palace concept for improved student engagement and recall. The study also outlines the limitations and potential areas for enhancement in IVR-based sustainability education.