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Cities are formidable drivers of economic, social and cultural development but face a rising multitude of challenges: urban sprawl, transportation problems and climate change to mention but a few. Evolving concepts such as smart cities, sustainable communities and low carbon cities have been employed to formulate initiatives to tackle these challenges. Smart cities appear to address efficiency in reducing time, cost, and energy in delivering services-smart transportation, intelligent buildings, and green infrastructure with a view to reaching low carbon city development and eventually sustainability. This article attempts to construct a general framework for smart cities. First, the overall smart city system is depicted. Second, the dynamics of urban sector drivers in smart and low carbon cities are elucidated. Third, the performance of smart cities is measured in relation to low carbon development. By applying the smart city framework to the cities of Vienna, London, New York and Tokyo, the model proved robust and flexible. The investigation is concluded with policies to realign city plan and development policies.