The European Union (EU) is moving forward to increase the production of sustainable maritime fuels as the global race intensifies. The European Commission has adopted the Sustainable Transport Investment Plan (STIP), which establishes a common approach to boost investments in renewable and low-carbon fuels, focusing on maritime and air transport.
The plan responds to the urgent need of the European transport and fuels industry to unlock investments and increase the production of renewable and low-carbon fuels and is part of a comprehensive transport package presented yesterday. Furthermore, the plan is considered a key component of the EU’s Clean Industrial Pact and the EU Competitiveness Compass.
To meet the objectives of FuelEU Maritime and RefuelEU Aviation, approximately 20 million tonnes of sustainable fuels (biofuels and e-fuels) will be needed by 2035. To achieve this, around 100 billion euros of investment will be needed. The STIP sends a clear signal to investors that Europe’s goals remain firm and that the Commission will support the transition towards a climate-neutral economy. By accelerating the domestic production of biological and non-biological fuels, Europe can reduce its dependence on imported fossil fuels, enhance the competitiveness of its industries, and lead the transition towards clean energy on a global scale, according to the Commission.
The main investment measures aimed at mobilizing at least 2.9 billion euros through EU instruments by 2027 include:
Connecting producers and buyers
In the medium term, the Commission intends to work towards establishing a mechanism that connects fuel producers and buyers, providing revenue certainty and reducing investment risk. The plan will also strengthen international partnerships to scale up global fuel production and attract imports that comply with EU sustainability criteria, while ensuring fair competition for EU producers and users.
Furthermore, the plan aims to reduce the administrative burdens on maritime transport operators, freeing up resources for growth. “Our Sustainable Transport Investment Plan is a decisive step towards a sustainable future. It is not just about reducing emissions, but about building a stronger, more competitive, and resilient Europe that leads in sustainable transport. This ambitious plan shows the Commission’s firm commitment to increasing the use of renewable and low-carbon fuels in aviation and maritime transport. “Success will depend on close cooperation between Member States, industry, financiers, and civil society to turn this challenge into a strategic opportunity for Europe,” commented Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism.
Coordinated investment
The Shipyards’ and Maritime Equipment Association of Europe (SEA Europe) has also welcomed the initiative as “coherent,” but has highlighted the insufficient resources to effectively drive the energy transition in maritime transport.
“The STIP allocates only 2.9 billion euros in public support for short and medium-term measures, far from sufficient to trigger large-scale private investments.”More coordinated investment from Member States is urgently needed,” stated Christophe Tytgat, Secretary General of SEA Europe.
The maritime sector contributes to the EU Emissions Trading System (ETS), but receives little in return to support its energy transition.Decisions on the use of revenues are left to individual Member States, rather than being mandatory. “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 decarbonisation of the sector.The STIP misses this opportunity, and we call on the Commission to propose an amendment to the ETS Directive to properly channel these investments,” 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 the European maritime cluster,” concluded Tytgat.
