The European Commission has launched its Sustainable Transport Investment Plan (STIP) on November 5, a bold initiative aimed at accelerating the energy transition in the aviation and maritime sectors. The plan includes a series of measures designed to increase the use of sustainable aviation fuel (SAF) and marine biofuels, with the goal of reducing carbon emissions in these critical industries, reports Biodiesel Magazine.
The STIP is expected to mobilize at least EUR 2.9 billion ($3.33 billion) by 2027, with a significant portion of this funding directed toward overcoming investment barriers and closing the financial gaps in the transition to cleaner energy. Key funding initiatives include at least EUR 2 billion, mobilized through InvestEU, dedicated to sustainable alternative fuels, which will play a crucial role in supporting the sector’s decarbonization efforts in the short term.
Additionally, the European Commission plans to propose EUR 300 million by 2025 to support hydrogen production for SAF and sustainable maritime fuel (SMF), to be managed through the European Hydrogen Bank. Research and innovation will also receive a boost, with approximately EUR 133 million allocated under the Horizon Europe program. Further, the Commission intends to mobilize EUR 153 million for synthetic aviation fuel projects and EUR 293 million for maritime fuel initiatives under the Innovation Fund.
One of the key components of the STIP is the launch of the eSAF Early Movers Coalition pilot project before the end of 2025. This project is designed to mobilize at least EUR 500 million for synthetic aviation fuel projects, aimed at stimulating early investment in the sector.
The Commission’s plan also seeks to strengthen international collaborations to boost global production of sustainable fuels while ensuring that EU investments are protected and that fair competition is maintained for European fuel producers and users.
To meet the fuel targets set by the ReFuelEU Aviation and FuelEU Maritime regulations, the European Commission estimates that approximately 12.2 million metric tons of biofuels and 6.8 million metric tons of e-fuels will be required. The market will need to invest an estimated EUR 100 billion by 2035 to reach these production volumes.
For more details, the full announcement by the European Commission is available on its official website.
