In recent years, North African countries have undergone rapid urbanization processes, which concentrated close to 70% of their population in metropolitan centers. While urbanization has been recognized as a catalyst for economic growth and development in these countries, unplanned urban growth presents profound environmental challenges that threaten to jeopardize the existing development challenges and exacerbate the impacts of climate change. At the same time, studies on the environmental consequences of urban growth in the region are noticeably limited. This chapter utilizes a panel dataset covering the period 1990–2019 and employs a cross-sectional augmented autoregressive distributed lag (CS-ARDL) modeling to examine the relationship among urbanization and carbon emissions (CO2) in four North African countries, namely Egypt, Tunisia, Sudan, and Morocco. The empirical results reveal that rapid urbanization processes have been associated with significant increases in CO2 emissions in these countries. Furthermore, the results indicated that foreign direct investment flows, economic growth, and international trade, partly brought about by urbanization, have also contributed to rising CO2 emissions. Conversely, the findings point out that expanding renewable energy use holds significant potential to reduce environmental degradation in the region. Overall, the findings emphasize the need for effective measures and policy interventions that prioritize sustainable urban planning and promote low-carbon development strategies to mitigate the negative impacts of urban growth on environmental degradation.