The shift towards a sustainable and low-carbon economy is restructuring the industrial systems rather than fully transforming them. This study examines the economic implications of this transition by empirically investigating the relationships between industrial structure, renewable energy usage, CO₂ emissions, and economic growth. Based on a panel data set covering five EU member countries from 2001 to 2023, our analysis includes key variables such as industry share of GDP, renewable energy consumption, and CO₂ emissions, while controlling for gross value added and income by main industry, as well as the impact of the COVID-19 pandemic. Results show that the industrial sector remains a key driver of growth. At the same time, the adoption of renewable energy could be associated with a short-term negative impact on GDP due to transitional adjustment costs. CO₂ emissions remain positively correlated with output, highlighting the challenge of separating economic growth from pollution. The study also addresses disruptions in industrial resource allocation, the economic burden of volatile energy costs and the need for technological innovation to support the transition. By combining empirical modelling with theoretical insights, this study contributes to the literature on climate change economics and offers policy-relevant findings for balancing economic growth with environmental sustainability.