<p>The urgency to mitigate climate change has intensified global efforts to achieve carbon neutrality, making the energy transition a crucial strategy in this pursuit. This study addresses the pressing need for a comprehensive understanding of the challenges, practices, policies, and opportunities associated with achieving carbon neutrality through energy transition. Employing a systematic literature review methodology, this research synthesizes key insights from diverse studies to highlight critical factors influencing global energy transition efforts. The results reveal that developed nations are advancing robust strategies to reduce carbon emissions, leveraging established infrastructure and financial resources. Conversely, developing countries face the dual challenge of managing energy security while addressing climate concerns, further complicated by economic inequalities heightened by the COVID-19 pandemic. Despite these challenges, several developing nations allocate substantial budgets to renewable energy initiatives, demonstrating proactive commitment. Least-developed countries, meanwhile, confront the complex task of aligning climate policies with urgent development needs, often seeking innovative approaches to achieve sustainable progress. This study underscores the importance of active collaboration among global, national, and local stakeholders to foster a successful energy transition. Effective policy frameworks, increased investment in renewable energy, and inclusive strategies are vital for achieving equitable carbon neutrality. The study concludes that carbon neutrality is not only an environmental necessity but also a socio-economic opportunity, emphasizing the need for unified, decisive action across sectors. Policymakers, researchers, and industry leaders are urged to prioritize energy transition as a foundational pillar for a sustainable future.</p>