This paper explores the synergistic relationship between energy and environment in an urban system through a case study of the city of Ahmedabad, India. The analytical framework is based on estimation of sectoral fuel consumption patterns, emissions inventory of major pollutants, and projections of future patterns of fuel consumption and emissions. The current and future patterns are then reassessed with the introduction of certain technical and policy interventions, which are both feasible and probable in the time horizon of five to ten years. These options are evaluated in terms of potential energy savings, reduction of fuel costs and potential emission reductions.