Commission unveils the Sustainable Transport Investment Plan: a strategic approach to boost renewable and low-carbon fuels for aviation and waterborne transport

The European Commission today adopted its communication on the Sustainable Transport Investment Plan (STIP), setting out a pivotal roadmap to rapidly accelerate the energy transition of aviation and waterborne transport sectors. A key component of the EU Competitiveness Compass and the Clean Industrial Deal, this initiative provides for the first time a common approach to boost investments into renewable and low-carbon fuels for these sectors.

The Investment Plan responds to the urgent need to unlock investments and scale up production of renewable and low-carbon fuels. To meet the fuel targets set out in the ReFuelEU Aviation and FuelEU Maritime Regulations, a significant volume of around 20 million tonnes of sustainable alternative fuels (13.2 Mt of biofuels and 6.8 Mt of e-fuels) will be needed by 2035. This calls for substantial investments from the market, with an estimated €100 billion required by 2035 to drive production.

By accelerating the production of EU-made sustainable fuels, Europe can significantly boost its competitiveness, reduce its energy dependency on fossil fuels and lead this industrial transition, on the way to reaching climate neutrality by 2050. Europe is already a global leader and holds most of the know-how and industrial leadership in this sector.

Key actions to boost investments

Regulatory stability is key for attracting investments into renewable and low-carbon fuels. With the STIP, the Commission sends a clear signal to investors that its targets are stable, and that it will support the sector throughout the transition.

The EU measures under this plan are expected to mobilise at least €2.9 billion until the end of 2027.

• To rapidly remove key investment barriers and bridge the financial gap in the short-term, InvestEU will mobilise at least €2 billion for sustainable alternative fuels until 2027.
• The Commission will propose €300 million by end of this year to support the production of hydrogen for sustainable aviation (SAF) and maritime (SMF) fuels through the European Hydrogen Bank.
• The Commission will support R&I projects with around €133 million under Horizon Europe.
• The Commission will mobilise €153 million for synthetic aviation fuel projects and €293 million for maritime fuel projects under the Innovation Fund.

Additionally, an eSAF Early Movers Coalition pilot project will be launched by end of this year, together with committed Member States, aiming to mobilise at least €500 million for synthetic aviation fuel projects.

In the medium-term, the EU needs an intermediary mechanism connecting fuel producers and buyers to provide revenue certainty and de-risk investments. The Commission will work towards establishing such a mechanism with a series of concrete steps. In addition, the Investment Plan aims to reduce administrative burdens on airlines and shipping operators, freeing up resources for growth.

The Investment Plan will also strengthen international partnerships to boost global production of these fuels, while at the same time protecting EU investments and ensuring fair competition for EU fuel producers and users.

Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, stated: " 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. Success will depend on close cooperation among Member States, industry, financiers and civil society to turn this challenge into a strategic opportunity for Europe."

Background

The Sustainable Transport Investment Plan is structured around three main pillars:

• Strategic framework: identifying crucial investment needs and existing deficits.
• Financing action: outlining actions with both short-term and medium-term impact to derisk and unlock investments and kick-start the renewable and low-carbon fuel market in Europe.
• External dimension: facilitating global production and uptake of renewable and low-carbon fuels, ensuring EU access and a level playing field for EU businesses.

It is one of the priority initiatives featured in Commissioner Tzitzikostas' Mission Letter. In July, Commissioner held an implementation dialogue with the EU's aviation, waterborne and fuel producer sectors to better understand their needs for ramping up renewable and low-carbon fuels production, as well as expectations for the Investment Plan.

For more information

• Questions and answers
• Sustainable Transport Investment Plan
• RLCF Alliance
• ReFuelEU Aviation
• FuelEU Maritime