The Association of Southeast Asian Nations (ASEAN) region is vulnerable to the effects of climate change. However, urbanization and energy supply are essential to the ASEAN economy. This study examines the effects of CO2 emissions and urban population on GDP per capita in 10 ASEAN countries from 1995 to 2021. Furthermore, ASEAN countries are divided into three income groups. According to the results of this study’s panel data analysis, urban population, and CO2 emissions per capita have a positive effect on GDP per capita, respectively. However, both urban population and CO2 emissions per capita reduce GDP per capita. While CO2 emissions per capita and GDP per capita have a negative relationship in low- and high-income countries, the urban population positively impacts GDP per capita across the ASEAN region’s income levels. In low- and high-income countries, urban population, and CO2 emissions per capita have a positive impact on GDP per capita.