Since the definition and publication of the 2030 Agenda in 2015, addressing Sustainable Development Goals (SDGs) has been pivotal in guiding carbon neutrality and sustainable solutions in urban development. Despite the passage of nine years, tangible successes in achieving the SDGs have been limited, underscoring the critical need for innovative approaches to fostering energy performance and reducing carbon emissions. This study advocates for adopting circular economy principles as a strategic pathway to mitigate environmental, social, and economic challenges and promote sustainable, net-zero-energy solutions. Through a systematic literature review spanning multiple databases, this research underscores the synergy between urban circular economies (UCEs) and the SDGs, with a particular focus on sustainable solutions, resource use circularity in construction, and renewable energy integration. By setting stringent eligibility criteria, this review captures a wide array of perspectives, providing a comprehensive analysis that bridges the gap between urban sustainability, renewable energy adoption, and climate change mitigation efforts. The analysis of 23 selected papers reveals a substantial linkage between UCE practices and the advancement of SDGs, highlighting the pivotal roles of responsible consumption, resource efficiency, and regenerative practices in achieving co-benefits through policy and regulatory frameworks towards carbon neutrality. The findings recommend implementing a holistic approach that integrates urban sustainability with circular economy principles, offering a structured insight into the potential of UCEs in fostering a sustainable transition in line with the 2030 Agenda for Sustainable Development.