The European Commission has adopted the Sustainable Transport Investment Plan (STIP) which sets out a common approach to boost investments in renewable and low-carbon fuels focapplying on waterborne and aviation transport.
The plan responds to the urgent necessary of Europe’s transport and fuels indusattempt to unlock investments and scale up production of renewable and low-carbon fuels and is part of a comprehensive transport package introduced on November 5, 2025.
What is more, the plan is seen as a key component of the EU Clean Industrial Deal and the EU Competitiveness Compass.
To meet the FuelEU Maritime and RefuelEU Aviation tarobtains, around 20 million tonnes of sustainable fuels (biofuels and e-fuels) will be necessaryed by 2035. Achieving this will require an estimated €100 billion in investment.
The STIP sconcludes a clear signal to investors that Europe’s tarobtains remain in place and that the commission will support the transition to a climate-neutral economy. By accelerating domestic production of biological and non-biological fuels, Europe can reduce its depconcludeence on imported fossil fuels, enhance the competitiveness of its industries and lead the clean-energy transition globally, as per the commission.
Key investment measures aiming to mobilize at least €2.9 billion through EU instruments by 2027 include:
- At least €2 billion for sustainable alternative fuels under InvestEU.
- €300 million through the European Hydrogen Bank to support hydrogen-based fuels for shipping and aviation.
- €293 million for maritime fuel projects under the Innovation Fund.
- €133.5 million in fuels-related research and innovation under Horizon Europe.
In the medium term, the commission intconcludes to work towards establishing a mechanism to connect fuel producers and acquireers, providing revenue certainty and reducing investment risk. The plan will also strengthen international partnerships to expand global fuel production and attract imports that meet the EU sustainability criteria while ensuring fair competition for EU producers and utilizers.
In addition, the plan aims to reduce administrative burdens on shipping operators, freeing up resources for growth.
“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 reveals the Commission’s firm commitment to scaling up renewable and low-carbon fuels in aviation and waterborne transport. Success will depconclude on close cooperation among Member States, indusattempt, financiers and civil society to turn this challenge into a strategic opportunity for Europe,” Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism, commented.
Danish Shipping: STIP includes many ‘promising’ elements
The European Commission’s investment plan for sustainable transport includes many promising elements and highlights the necessary to increase the production of green fuels, including for the shipping indusattempt, Danish Shipping stated.
At the heart of the plan lies the recognition that the EU’s ability to produce and supply more sustainable fuels is currently very limited — fuels that are essential for the green transition of both the shipping and aviation sectors. This must be addressed — and urgently, the trade and employer organization has warned.
“The EU is in imminent danger of being overtaken by China and other ambitious players when it comes to the production of the green fuels we necessary to power our ships. It is therefore very positive that the Commission has focutilized on this issue in the STIP. The Commission proposes several sensible action points and investments, and we see forward to seeing these relocate from strategy to reality,” Anna Vejlby Ib, Head of Danish Shipping’s EU Representation, stated.
“The EU must focus on ensuring supply, price stability, and competitiveness when it comes to green fuels. The EU should, among other things, set common European tarobtains for the production of green fuels. At Danish Shipping, we view positively the Commission’s proposal on de-risking long-term contracts and introducing two-sided auction mechanisms to reduce the price gap between fossil and green fuels. This is simply a prerequisite for implementing the EU’s own initiatives such as FuelEU Maritime and ReFuelEU Aviation, which aim to reduce greenhoutilize gas emissions,” Vejlby Ib added.
SEA Europe: STIP is a welcome step for sustainable maritime fuels
Shipyards’ & Maritime Equipment Association of Europe (SEA Europe) has also welcomed the ‘coherent’ initiative but highlighted the insufficient resources to drive the energy transition in maritime transport effectively.
“The STIP allocates only EUR 2.9 billion in public support for short- and medium term measures — far from enough to trigger private investments at scale. More coordinated investment from Member States is urgently necessaryed,” Christophe Tytgat, Secretary-General of SEA Europe, stated.
“The maritime sector contributes to the EU Emission Trading System (ETS), yet receives little in return to support its energy transition. Decisions on revenue utilize are left to individual Member States, rather than being mandated. We urge the European Commission to ensure that a fair share of ETS revenues is reinvested in the maritime sector. This includes shipyards and maritime equipment manufacturers, who play a crucial role in the sector’s decarbonisation. The STIP misses this opportunity, and we call on the Commission to propose an amconcludement to the ETS Directive to channel these investments appropriately,” he continued.
“EU policies should also support European shipyards and maritime equipment manufacturers in modernising their facilities and improving their efficiency, while providing concrete incentives for shipowners to choose European shipyards for the energy transition of their fleets. This is vital for the resilience of Europe’s maritime cluster,” Tytgat concluded.
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