Transport is a fast growing sector. A steadily increasing motorization along with urbanization is a trend that can be observed in most developing countries. This and the oil dependence of the transport sector lead to considerable growth rates of carbon emissions. Actions to stop this trend are urgently needed. This paper shows how national and/or urban low-carbon transportation policies could help countries to win the battle and achieve a smart, sustainable economic growth while at the same time stabilizing and later reducing transport emissions. Sustainable Development Policies and Measures in the transport sector include a variety of co-benefits, e.g. reduced air pollution, social equity and economic development. In the context of the global economic crisis such measures promote economic growth, social stability and also can be implemented at reasonable costs.