This policy brief draws on insights from the Green and Resilient Recovery (GRR) Local Action Grant Project, funded by the Ministry of Finance and implemented by UNDP Malaysia, to examine how a just transition can support inclusive rural development and accelerate Malaysia's shift to a low-carbon, climate-resilient economy. It explores the challenges of delivering reliable and affordable energy to rural and remote communities and highlights the role of decentralised renewable energy in strengthening livelihoods, reducing inequalities, and building community resilience. Drawing on implementation experience and stakeholder dialogue, the policy brief presents practical policy recommendations for integrating just transition principles into rural development and energy planning to support Malaysia's net-zero emissions target by 2050.