This chapter delves into the question of whether decentralized energy system and increase in regional authority promote Just Energy Transition, in which communities can engage and participate in the decision making process. The impact of climate mitigation and adaptation policies on energy transition at the decentralized level have been discussed in this chapter. We also enquire whether financial development has potential effect on clean energy transition by channelling funds toward renewable energy projects. This chapter gives a detailed account of how decentralized solutions along with financial development affect energy transition. It can be concluded from this chapter that the effectiveness of different policy variables on energy transition depends upon the degree of government decentralisation and the adaptation of decentralised energy system.