This study evaluates direct and indirect environmental impacts associated with the consumption of goods and services by the households living in the municipality of Aveiro (Portugal) using environmentally extended input output (IO) analysis. The environmental impacts addressed are greenhouse gas (GHG) emissions and fossil fuel consumption. A methodology adapted to the specificities of the data available is proposed. This methodology relies on the Portuguese economic IO table, on GHG emission and fossil fuel consumption intensities, and on national household expenditure data downscaled to the urban level. This methodology could also be applied to other municipalities or cities for which data on local household expenditures are missing. This study also identifies the sectors with the largest impacts in order to prioritise strategies for reducing the impacts to move the municipality towards more sustainable consumption. The estimated total GHG emissions in 2005 amounted to 26 kg CO2-eq./cap/day and the total fossil fuel consumption was 7.3 koe/cap/day. The sectors that contributed most for both indicators are “land transport and transport by pipelines”, “food, beverages and tobacco”, “construction” and “production, collection and distribution of electricity”. Therefore, improvement measures are proposed for these sectors in order to more effectively decrease the environmental impacts related with GHG emissions and fossil energy consumption of the municipality.