The European Commission approved today the Sustainable Transport Investment Plan (Stip – Sustainable Transport Investment Plan), which aims to increase investments in renewable and low-carbon fuels for aviation and maritime transport.
To achieve the objectives of the ReFuelEU Aviation and FuelEU Maritime regulations by 2035, a note states, approximately 20 million tonnes of sustainable fuels (biofuels and e-fuels) will be needed, which will require estimated investments of 100 billion euros.
The plan adopted today “sends a clear signal to investors: the European objectives remain unchanged and the Commission will continue to support the transition towards a climate-neutral economy”. By accelerating the internal production of fuels, both biological and non-biological, Europe, according to Brussels, will thus be able to reduce dependence on imported fossil fuels as well as strengthen industrial competitiveness and lead the global transition towards clean energy.
The investments that the plan intends to mobilize by 2027 amount to approximately 2.9 billion euros. The largest share – at least 2 billion euros – will go to sustainable alternative fuels via InvestEU, while 300 million will go to support hydrogen-based fuels for aviation and navigation via the European Hydrogen Bank. Another 446 million euros will be allocated, via the Innovation Fund, to projects on synthetic fuels for aviation and maritime transport, while a further 133.5 million will go to research and innovation on fuels under Horizon Europe.
By the end of 2025, an additional share of at least 500 million euros will be added to these amounts for a pilot project titled eSAF Early Movers Coalition for projects on synthetic fuels for aviation. The Commission, the note further states, will also work to improve market conditions and reduce investment risk, creating mechanisms that link producers and buyers and provide revenue certainty.
In the medium term, furthermore, Brussels aims to establish a mechanism to connect fuel producers and buyers, to guarantee financial stability and foster new investments, as well as to strengthen international partnerships to expand global production and ensure imports that respect European sustainability criteria.
Furthermore, the European Council today reached an agreement on amending the European climate law (Ecl), introducing a binding interim climate target for 2040, namely a 90% reduction in net greenhouse gas (Ghg) emissions compared to 1990 levels. This new target represents a fundamental step towards the EU’s long-term goal of achieving climate neutrality by 2050.
The amendment also defines some areas of flexibility and key elements for the 2040 target and the post-2030 climate framework. These elements will guide the Commission’s future legislative proposals to enable member states to achieve the 2040 target, while supporting European industry and citizens during the transition.
The agreed text defines the Council’s position for the upcoming negotiations (“trilogues”) with the European Parliament, which will define the final text of the legislation.
Regarding the main amendments approved, the Council maintained the binding 90% net greenhouse gas emissions reduction target by 2040 proposed by the Commission but made some changes to reflect concerns related to EU competitiveness, the need for a just and socially balanced transition, the uncertainty related to natural sinks, and the different national situations of the Member States. These amendments were also inspired by the strategic guidance provided by European leaders in the Council conclusions adopted on 23 October last.
The Commission’s proposal included three flexibility options, which will need to be properly incorporated into future legislative proposals for achieving the 2040 target. The Council further clarified these areas of flexibility, including: the possibility of using high-quality international carbon credits to make an “adequate contribution” to the 2040 target, quantified at up to 5% of the EU’s 1990 net emissions, starting from 2036, including a pilot period for 2031-2035; a role for permanent domestic carbon removals within the EU Emissions Trading System (ETS) to offset hard-to-abate residual emissions; greater flexibility within and between sectors and tools to support the achievement of targets in simple and cost-effective ways, allowing Member States to address shortfalls in one sector without compromising overall progress.
The Council’s position also introduces a biennial assessment to monitor progress towards intermediate targets based on the latest scientific evidence, technological progress, and the EU’s global competitiveness. Member States further elaborated and strengthened the review clause of the current European Climate Law. Based on the findings of the review and where appropriate, the Commission will have to propose a revision of the Climate Law. This could include an adjustment of the 2040 target or other additional measures to strengthen the enabling framework, in particular to ensure the EU’s competitiveness, prosperity, and social cohesion.
The Council finally introduced a provision aimed at postponing the entry into force of the EU’s emissions trading system for buildings and road transport (ETS2) by one year, from 2027 to 2028.
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