The long-awaited STIP represents a step in the right direction, pending further deliverables.
The European Commission announced the Sustainable Transport Investment Plan (STIP), aiming to mobilise EUR 2.9 billion by 2027 to accelerate investment in renewable and low-carbon fuels for aviation and shipping. The plan introduces short-term funding support, medium-term market mechanisms, and commitments to fix gaps in existing SAF policy implementation.
KEY ELEMENTS
Short-term measures
- Mobilisation of EUR 2.9 billion via existing EU programmes: Innovation Fund, Horizon Europe, InvestEU, and EIB’s TechEU.
- Innovation Fund: EUR 153 million for synthetic aviation fuel, EUR 293 million for maritime fuels.
- Hydrogen Bank: EUR 300 million call (Dec 2025) to support e-fuel production.
- InvestEU: expected to mobilise EUR 2 billion in private investment by 2027.
- Horizon Europe & EIC: EUR 133 million and EUR 300 million for R&I and early-stage renewable fuel technologies.
Medium-term measures
- Preparation of an EU-wide “double-sided auction” (modeled on H₂Global) to give revenue certainty to e-SAF and sustainable maritime fuel producers.
- Launch of an e-SAF Early Movers Coalition pilot in early 2026 (EUR 500 million target).
- Study and design of governance, funding, and auction models ahead of inclusion in the next EU Multiannual Financial Framework (post-2027).
- Encouragement for Member States to:
- Use Clean Industrial Deal State Aid Framework (CISAF) for e-fuel support.
- Finalise the Energy Taxation Directive and reduce fossil-fuel subsidies.
- Reinvest ETS revenues into aviation and maritime decarbonisation.
Policy & regulatory fixes
- Possible extension of free ETS allowances for SAF.
- Simplification of SAF mandate rules and supplier obligations (traceability, reporting, digitalisation).
- Recognition of Book & Claim systems as a potential tool for e-SAF scale-up.
Strategic implications
STIP aligns with the Draghi Report and Clean Industrial Deal, reinforcing the EU’s goal to maintain technological leadership in sustainable fuels. Europe currently holds 60 % of global synthetic-fuel patents and most commercial-scale biofuel facilities.
However, the Commission does not foresee e-SAF Final Investment Decisions before 2027, warning that investment must begin by that year to meet 2030 targets.
Key takeaway
STIP represents a major financial and policy commitment to advance sustainable aviation fuels, but the absence of a near-term revenue certainty mechanism means that FID delays remain likely until Theo full auction framework is operational.
