The European Commission said that meeting the fuel targets set out in the FuelEU Aviation and FuelEU Maritime Regulations will require a volume of around 20 million tons of sustainable fuels for aviation and waterborne transport by 2035. This calls for substantial investments from the market, with an estimated €100 billion required by 2035 to drive production.
The Commission’s Sustainable Transport Investment Plan (STIP) maps the bloc’s plans to rapidly accelerate the aviation and waterborne transport energy transition by investing in renewable and low-carbon fuels (13.2 Mt of biofuels and 6.8 Mt of e-fuels). This, it said, will boost Europe’s competitiveness, reduce its energy dependency on fossil fuels and allow it to lead this industrial transition, on the way to reaching climate neutrality by 2050.
In a statement, the Commission said 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 mobilize at least €2.9 billion until the end of 2027. InvestEU will mobilize at least €2 billion for sustainable alternative fuels until 2027 to rapidly remove key investment barriers and bridge the financial gap in the short-term.
The Commission also said it 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.
- Support R&I projects with around €133 million under Horizon Europe.
- Mobilize €293 million for maritime fuel projects under the Innovation Fund.
In the medium-term, the Commission said, 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.
“Our Sustainable Transport Investment Plan is a decisive step towards a sustainable future,” said Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas. “It’s not just about cutting emissions – it’s about building a stronger, more competitive and resilient Europe that leads in sustainable transport.”
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.
