Offshore Energy — 2025-11-05
News from Brussels
The European Commission has adopted the Sustainable Transport Investment Plan (STIP) which sets out a common approach to boost investments in renewable and low-carbon fuels focusing on waterborne and aviation transport.
The plan responds to the urgent need of Europe’s transport and fuels industry to unlock investments and scale up production of renewable and low-carbon fuels and is part of a comprehensive transport package introduced on November 5, 2025.
What is more, the plan is seen as a key component of the EU Clean Industrial Deal and the EU Competitiveness Compass.
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To meet the FuelEU Maritime and RefuelEU Aviation targets, around 20 million tonnes of sustainable fuels (biofuels and e-fuels) will be needed by 2035. Achieving this will require an estimated €100 billion in investment.
The STIP sends a clear signal to investors that Europe’s targets remain in place and that the commission will support the transition to a climate-neutral economy. By accelerating 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 clean-energy transition globally, as per the commission.
Key investment measures aiming to mobilize at least €2.9 billion through EU instruments by 2027 include:
In the medium term, the commission intends to work towards establishing a mechanism to connect fuel producers and buyers, providing revenue certainty and reducing investment risk. The plan will also strengthen international partnerships to expand global fuel production and attract imports that meet the EU sustainability criteria while ensuring fair competition for EU producers and users.
In addition, the plan aims to reduce administrative burdens on shipping operators, freeing up resources for growth.
“Our Sustainable Transport Investment Plan is a decisive step towards a sustainable future. 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,” Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism, commented.
Danish Shipping: STIP includes many ‘promising’ elements
The European Commission’s investment plan for sustainable transport includes many promising elements and highlights the need to increase the production of green fuels, including for the shipping industry, Danish Shipping said.
At the heart of the plan lies the recognition that the EU’s ability to produce and supply more sustainable fuels is currently very limited — fuels that are essential for the green transition of both the shipping and aviation sectors. This must be addressed — and urgently, the trade and employer organization has warned.
“The EU is in imminent danger of being overtaken by China and other ambitious players when it comes to the production of the green fuels we need to power our ships. It is therefore very positive that the Commission has focused on this issue in the STIP. The Commission proposes several sensible action points and investments, and we look forward to seeing these move from strategy to reality,” Anna Vejlby Ib, Head of Danish Shipping’s EU Representation, said.
“The EU must focus on ensuring supply, price stability, and competitiveness when it comes to green fuels. The EU should, among other things, set common European targets for the production of green fuels. At Danish Shipping, we view positively the Commission’s proposal on de-risking long-term contracts and introducing two-sided auction mechanisms to reduce the price gap between fossil and green fuels. This is simply a prerequisite for implementing the EU’s own initiatives such as FuelEU Maritime and ReFuelEU Aviation, which aim to reduce greenhouse gas emissions,” Vejlby Ib added.
SEA Europe: STIP is a welcome step for sustainable maritime fuels
Shipyards’ & Maritime Equipment Association of Europe (SEA Europe) has also welcomed the ‘coherent’ initiative but highlighted the insufficient resources to drive the energy transition in maritime transport effectively.
“The STIP allocates only EUR 2.9 billion in public support for short- and medium term measures — far from enough to trigger private investments at scale. More coordinated investment from Member States is urgently needed,” Christophe Tytgat, Secretary-General of SEA Europe, stated.
“The maritime sector contributes to the EU Emission Trading System (ETS), yet receives little in return to support its energy transition. Decisions on revenue use are left to individual Member States, rather than being mandated. 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 sector’s decarbonisation. The STIP misses this opportunity, and we call on the Commission to propose an amendment to the ETS Directive to channel these investments appropriately,” 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 Europe’s maritime cluster,” Tytgat concluded.