To achieve a carbon-neutral and sustainable society, communities must be built that efficiently use local renewable energy. In this chapter, we first present a vision of the carbon-neutral energy system that we should strive for. We argue that to realize this vision, smart energy systems should be built in rural areas rich in renewable energy resources, as well as in the agriculture and forestry industries that support them. In this chapter, we will explain the Japanese government’s circular and ecological sphere concept as a method for revitalizing rural villages, followed by a methodology for transitioning to carbon-neutral rural villages based on the theoretical framework of “sustainability transition.” According to this methodology, to create a carbon-neutral society, promoters should (1) play a central role in establishing a vision for the region’s future and (2) proactively implement projects that improve the environment, society, and economy in accordance with the vision while involving various stakeholders. Furthermore, (3) the promoter must continue to expand its business by iteratively refining the concept based on feedback from the results. This chapter employs this methodological framework to assess best practice processes while clarifying future measures’ requirements. Finally, we argue that to achieve this goal, agriculture and forestry must be integrated into the economic cycle mechanism and discuss the ideal future economic structure. Specifically, we introduce an analysis method known as input–output analysis and use it to explain the new input–output structure that results from the constructing rural village using renewable energy.