Low carbon city has driven a new wave of challenges especially for developed as well as developing countries. Fueled by global climate change and stakeholders’ pressure to maintain, conserve, and sustain energy and environment, new model of low-carbon city are needed. In this paper, issues, challenges, and best practices of low carbon city were reviewed. A systematic literature review was performed on 130 articles from 2000 to 2017, to review and gather the latest developments of the body of knowledge on low-carbon city. Subsequently, identified issues and challenges of low-carbon city are analyzed quantitatively using Best Worst Method. This paper suggested a conceptual framework to rank issues and challenges of low carbon city. Ultimately, the paper proposes future direction of research on the low carbon city domain to ensure the specific agenda of low carbon city is realized.