The emission and mitigation of greenhouse gases transforms the status of urban environments. However, a policy accounting for all the aspects associated with transport is lacking. Problems related to transport include a greater reliance on cars, increased congestion, and environmental impacts. The absence of an efficient public transport system is a notable cause of the prompt escalation of diverse problems, for example, increases in the number of personal automobiles causes congestion on the road, resulting in air pollution, ubiquitous greenhouse effects and noise pollution, which ultimately affect human health. Transit oriented development (TOD) has been suggested as a solution to these problems. This paper reviews the impacts of transit development on urban development, greenhouse impact, the environment, economy, property value, travel behavior, and health etc., highlighting the policy issues which hinder TOD. Implementation of TOD has a strong impact on shaping the urban form, redevelopment, and the upgradation of old areas. Controlling transit phenomena will also help to control the emission and mitigation of greenhouse gases. This study will help in improving the urban environment and climatic condition of regions.