The European Commission announced the launch of its new Sustainable Transport Investment Plan (STIP), setting out its roadmap and planned investments to dramatically accelerate the production of sustainable and low-carbon fuels needed to help reach its aviation and maritime transport sector decarbonization goals.
The new plan follows the adoption in 2023 by EU lawmakers of ReFuelEU Aviation and FuelEU Maritime regulations, setting binding targets to ramp up low-carbon fuel usage in the aviation and maritime shipping sectors, respectively. Targets included in the regulations include a minimum share of sustainable aviation fuel (SAF) at EU airports, starting a 2% in 2025, and increasing over time to reach 70% by 2050, as well as a minimum share of synthetic fuels starting in 2030 and also increasing through 2050, and for maritime shipping, requirements to gradually reduce the greenhouse gas intensity of fuels, starting with a 2% reduction in 2025, and reaching as much as 80% by 2050.
According to the Commission, however, while EU production capacity of sustainable fuels is on track for the targets from 2025 – 2029, investment planning does not appear sufficient to meet the regulations’ targets after 2030. The Commission added that investments to sufficiently scale up production of renewable and low-carbon fuels will need to reach an estimated €100 billion by 2035.
The Commission said that the new Sustainable Transport Investment Plan is aimed at addressing the barriers to investment to enable the needed increase in production of renewable and low-carbon fuels, in addition to help producers access biological feedstocks for the fuels.
In total, the Commission’s plan aims to mobilize at least €2.9 billion in investments through the end of 2027, with specific investments including at least €2 billion for sustainable alternative fuels through the InvestEU programme, €300 million by end of this year to support the production of hydrogen for SAF and sustainable maritime fuels (SMF) through the European Hydrogen Bank, support from the Commission of around €133 million under Horizon Europe for research and innovation projects, as well as the mobilization of €153 million for synthetic aviation fuel projects and €293 million for maritime fuel projects under the Innovation Fund.
In addition, the Commission announced plans to launch an eSAF Early Movers Coalition pilot project aimed at mobilizing €500 million for synthetic aviation fuel projects by the end of this year, as well as to establish a mechanism connecting fuel producers and buyers to provide revenue certainty and de-risk investments.
Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, said:
“Our Sustainable Transport Investment Plan is a decisive step towards a sustainable future. It’s not just about cutting emissions – it’s about building a stronger, more competitive and resilient Europe that leads in sustainable transport. This ambitious plan shows the Commission’s firm commitment to scaling up renewable and low-carbon fuels in aviation and waterborne transport.”
