Centered around transformative change for urban sustainability and resilience is a circular economy (CE) strategy to energy and material resources, which offers manufacturing businesses benefits on an economic, environmental, and social map. While this adoption encourages the application of new governance strategies that consider the intricacy of urban systems and the knowledge and perspectives of related stakeholders, it also makes significant economic growth possible by ensuring that energy and material resources are used appropriately across manufacturing industries. Our work focuses on identifying the indicators in the context of urban resilience and transformation via CE and developing a DEMATEL in conjunction with an FCM Decision Support System to facilitate the decarbonization of urban regions through plausible policy scenarios. The findings show that implementing circular and green practices, using resources responsibly, and combining institutional and social action at the local level may be the best ways to promote an efficient and long-lasting change in the urban energy system. We focus on the importance of the energy system's connectedness, which is discovered to present conflicting potential for resilience and transformation, as we specifically examine the features of the resulting cognitive network.