The European Commission has adopted a major transport package aimed at boosting investment in renewable and low-carbon fuels for the aviation and maritime sectors, as part of its broader strategy to decarbonize mobility and strengthen Europe's industrial competitiveness.

The initiative, which includes the Sustainable Transport Investment Plan (STIP), sets a common framework to scale up the production and deployment of sustainable fuels across the EU. The Commission estimates that meeting the bloc’s climate goals under ReFuelEU Aviation and FuelEU Maritime will require around 20 million tonnes of sustainable fuels by 2035, representing an investment need of approximately €100 billion.

To support this transition, the EU plans to mobilize at least €2.9 billion by 2027 through various instruments. The funding breakdown includes:

• €2 billion for sustainable alternative fuels under InvestEU.

• €300 million through the European Hydrogen Bank to support hydrogen-based fuels for aviation and maritime transport.

• €446 million for synthetic fuel projects under the Innovation Fund.

• €133.5 million for research and innovation under Horizon Europe.

In addition, the Commission and Member States are preparing to launch a pilot initiative of the eSAF Early Movers Coalition by the end of 2025, aiming to mobilize at least €500 million for synthetic aviation fuels.

According to the Commission, scaling up domestic production of both biological and non-biological renewable fuels will be critical to reducing dependency on imported fossil fuels, while supporting the competitiveness of European industry and maintaining the EU’s leadership in global climate action.

The plan also foresees the development of a market mechanism to connect fuel producers and buyers, ensuring revenue stability and reducing investment risks. International partnerships will be strengthened to secure global supply chains and ensure that imports meet EU sustainability standards.

Alongside its measures on fuels, the transport package includes actions to accelerate the rollout of Europe’s high-speed rail network, further aligning with the EU’s long-term objective of building a climate-neutral economy by 2050.

“Today’s investment plan sends a clear signal: Europe is committed to scaling up clean transport solutions and supporting the industries driving the energy transition,” the Commission stated.