Nature-based solutions (NbS), including renewable or decarbonized energy initiatives, have a great contribution to make to climate change mitigation and adaptation processes. However, there is much debate about the existing structure of NbS and how they meet various social and environmental needs, particularly in the case of decarbonized energy initiatives. Among the concerns raised is dispossession, including why and how such dispossession may occur in implementing NbS and how this can be overcome can be overcome through decentralized community renewable energy (CRE) initiatives. Through an extensive literature review, this chapter attempts to understand the role of CRE in avoiding dispossession in NbS based on principles and practices of energy justice, including procedural and distributional justice, in rural North America and Western Europe. This study applied a systematic literature review based on a four-step process, including data source identification, screening and application of eligibility, and inclusion/exclusion criteria. This review found that NbS is a relatively new concept, having some key limitations regarding procedural and distributional justice. CRE can be an alternative solution as it focuses on environmental, cultural, and justice-related considerations. Related to procedural justice, the study found that CRE implies a “consult-consider-modify-proceed” process instead of the common “decide-announce-defend” model. A high level of participation in CRE profits from a locally grounded, collectively shared, participatory, and politically supported approach. On the other hand, from the distributional perspective, CRE is community-owned. This induces collaborative solutions, often on a regional basis, to facilitate economic and social development and distribution of the benefits more widely among local communities than conventional, centralized renewable energy initiatives. Thus CRE is acting as a vehicle for broader community benefit rather than solely generating profits for external investors.