As discussed in Chapter 1, the world’s energy consumption in 2011 was 14,092 Mtoe; about 30 Giga metric tons of CO2 emissions were released in the atmosphere to meet this energy demand . Greenhouse gas (GHG) emissions and energy demand have risen high on the global environmental agenda-particularly with the Kyoto Protocol and other related global agreements. Consequently, an urgent need has arisen for the incorporation of energy efciency issues into urban planning and construction . To meet the urban challenges of today, and the challenges to come, appropriate planning strategies and management frameworks must be available, through which cities can apply innovative approaches suitable for their local circumstances. This chapter will review the challenges that cities face and factors that affect new strategies for urban planning where energy efciency is the core issue shaping the city’s future.