This article reviews the critical issues surrounding the development of sustainable urban environments, focusing on the impact of transport and urban form on energy consumption and greenhouse gas emissions. The aim is to provide an overview of the state-of-the-art on the subject and to unravel what directions the literature suggests for sustainable urban planning. Current research and practices are synthesized, highlighting the interdependence of urban design and transportation systems in achieving sustainability goals. Important dimensions and practices of city planning and transport policies are explored, including urban form, urban sprawl, mixed land use, densification and infill, and urban public spaces, and how these directly influence transport dynamics, including modal choices and energy consumption. Innovative approaches in urban planning, such as transit-oriented development, and technological advancements, such as electric mobility, are also examined and their potential roles in sustainable urban transport. The conclusion underscores the urgency of adopting holistic and adaptable strategies to foster sustainable urban environments, calling for concerted efforts from policymakers, urban planners, and communities. Awareness of the conclusions can help municipal decision-makers in planning their cities for a sustainable future. Finally, the authors analyze important directions for future research and practical applications towards developing cities that are environmentally sound, socially equitable, and economically viable.