How Europe is Aiming to Reduce Aviation & Maritime Emissions
According to Air Transport Action Group, a Swiss based NGO, aviation produced 882Mt of CO₂ in 2023.
In line with this, the European Commission is adopting its communication on its Sustainable Transport Investment Plan (STIP), setting out a vital roadmap to advance the energy transition of aviation and waterborne transport sectors.
As part of the EU Competitiveness Compass and the Clean industrial deal, this initiative provides a common approach to boost investments into renewable and low carbon fuels in these sectors for the first time.
Inside the investment plan
The investment plan responds to the urgent need to unlock investments and scale up production of renewable and low carbon fuels.
Targets within the STIP align closely with the EU’s ReFuelEU aviation and FuelEU maritime regulations.
ReFuelEU aviation promotes the increased use of SAF, which could include synthetic aviation fuels, advanced biofuels, bio fuels and recycled carbon aviation fuels, to decrease aviation CO₂ emissions.
The FuelEU maritime regulation sets maximum limits for yearly average GHG intensity by ships above 5,000 gross tonnage calling into European ports.
To reduce air pollution in ports, both passenger and container ships must use on-shore power supply or alternative zero-emission technologies from 1st January 2030.
To meet the ReFuelEU and FuelEU targets, a volume of around 20 million tonnes of SAF and €100bn (US$115.6bn) of investments will be needed by 2035.
Actions to boost investments
Regulatory certainty is essential to attract investment into renewable and low-carbon fuels.
With the STIP, the European Commission signals to investors that its targets will hold and that it will back the sector through the transition.
The plan’s EU measures are expected to mobilise at least US$3.1bn by the end of 2027, including:
- InvestEU to mobilise at least US$2.1bn for sustainable alternative fuels by 2027
- About US$320m via the European Hydrogen Bank to support hydrogen production for SAF and sustainable maritime fuel (SMF) by year end
- Around US$142m for research and innovation projects under Horizon Europe
- A projected US$164m for synthetic aviation fuel projects and US$314m for maritime fuel projects through the Innovation Fund
- An eSAF Early Movers Coalition pilot, launched with committed Member States by year end, aiming to mobilise at least US$535m for synthetic aviation fuel projects
In the medium term, the EU needs an intermediary mechanism linking fuel producers and buyers to provide revenue certainty and de-risk investment.
"Our Sustainable Transport Investment Plan is a decisive step towards a sustainable future,” says Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism.
“It’s not just about cutting emissions, it’s about building a stronger, more competitive and resilient Europe that leads in sustainable transport.
“This ambitious plan shows the Commission’s firm commitment to scaling up renewable and low-carbon fuels in aviation and waterborne transport.
“Success will depend on close cooperation among Member States, industry, financiers and civil society to turn this challenge into a strategic opportunity for Europe."
The Commission will work towards this with concrete steps.
The plan also aims to cut administrative burdens for airlines and shipping operators to free up resources for growth.
The Investment Plan will strengthen international partnerships to boost global production, protect EU investments and ensure fair competition for EU fuel producers and users.
The future of sustainable fuel
The Sustainable Transport Investment Plan is built on three pillars:
- Strategic framework: identifies critical investment needs and current gaps
- Financing action: sets out short and medium-term measures to de-risk capital, unlock investment and jump-start Europe’s renewable and low-carbon fuels market
- External dimension: supports global production and uptake of renewable and low-carbon fuels while securing EU access and a level playing field for EU businesses.
It is a priority initiative in Commissioner Tzitzikostas’ Mission Letter.
In July the Commissioner held an implementation dialogue with the EU’s aviation, waterborne and fuel producer sectors to clarify what is needed to scale renewable and low-carbon fuel production and to test expectations for the plan.
By accelerating EU-made sustainable fuels, Europe can strengthen competitiveness, cut dependence on fossil fuels and lead the industrial transition towards climate neutrality by 2050.
Europe already holds a leading position with much of the required know-how and industrial capability.
