Specifics of the Interfuel Competition on the European Market in Context of the European Union Transition to Low-carbon Energy

In this paper, interfuel competition is studied in conjunction with the decarbonization trend, observed in the European Union. Since the landmark Paris Agreement was signed, EU has gone much further in terms of commitment to combating climate change. With the new Green Deal package, European Union and its member countries has made carbon neutrality one of their top priorities. Evidently, reaching a net zero carbon goal is impossible without a transition from burning fossil fuels towards using cleaner renewable energy sources. However, the potential redistribution of shares of different fuels and the shift in their competitiveness remains yet to be explored. Present research builds on historical data, current and projected carbon regulation framework and related policies and tries to evaluate the potential status of interfuel competition in EU's different energy demand sectors in the framework of climate-friendly transition.