The article analyzes the impact of the declared in the EU energy transition to a low-carbon economy with the predominant use of renewables on competitiveness and sustainable development. The economic and geopolitical factors of energy transformation are highlighted. The choice the EU made in favor of nuclear energy and natural gas as the least polluting in the context of the ongoing energy crisis is considered. Attention is paid to the reform of nuclear power in France, the country with the traditionally most developed nuclear power plants network. It is emphasized that the EUs’ planned Carbon Border Adjustment Mechanism (CBAM) could affect not only the environment, but also the balance of power in the energy market. The importance of state policy and interstate cooperation in reducing greenhouse gas emissions and developing clean energy is determined. It is concluded that there is a risk of recession due to the policy of avoiding Russian fossils.