Transitioning to renewable energy resources is necessary to address the energy and climate crisis and to be in accordance with UN Sustainable Development Goals (SDGs) 7, 11 and 13. Urban wind energy harvesting is still emerging mainly with the use of small wind turbines. Given their implementation challenges, positive and negative effects need to be weighed to make informed policy decisions and regulations. This systematic review evaluates the macro- and micro-scale environmental effects related to implementing small urban wind turbines (SUWTs). Although publications exist on diverse aspects of SUWTs, a review that addresses the broad range of identified environmental effects of SUWT implementations has been lacking until now. This review shows that while the study of the SUWTs' environmental effects can build on the effects associated with large wind turbines, there are also significant differences. Given the heterogeneity of urban conditions, the implementation of SUWTs requires detailed local environmental assessment to characterise accurately most environmental effects, notably the net life-cycle primary energy performance and associated GHG emissions, raw materials depletion, recycling, safety, noise, visual and light pollution, and effects on urban wildlife. Effects that require further investigation and which possibly raise regulatory or social acceptance issues are identified and discussed.