EU Pushes Clean Fuels to Decarbonise Planes and Ships

Aviation and maritime transport are some of Europe’s toughest climate challenges. Brussels now hopes targeted investment can change that. 

Aviation and maritime transport continue to sit at the hard-to-abate end of Europe’s climate agenda. Both sectors still rely heavily on high-energy-density fuels and operate with long investment cycles, making rapid decarbonisation far more complex than in road transport or buildings. In an effort to accelerate progress, the European Commission unveiled its Sustainable Transport Investment Plan (STIP) in November 2025, pitching it as a roadmap to expand the use of renewable and low-carbon fuels in planes and ships. 

How will the STIP deliver? 

The Commission’s pitch begins with fresh money. By the end of 2027, Brussels expects the plan to mobilise at least €2.9 billion through a blend of EU and national funding. Officials describe this as a much-needed kick-start. But behind the cautiously optimistic tone lies broad acknowledgment that it is still nowhere near the investment scale required to transform two global industries that have been locked into fossil fuels for decades. 

The more ambitious part of the plan lies further out. The Commission wants to establish an intermediary mechanism designed to bring fuel producers and buyers closer together —effectively creating a bridge between supply and demand for cleaner fuels. By offering more predictable revenues and reducing commercial risk, Brussels hopes to unlock a wave of private-sector investment that has so far remained on the sidelines. 

At the same time, STIP promises to cut administrative burdens for airlines and shipping operators, many of whom argue that regulatory complexity absorbs resources that could be directed toward new technologies or fleet upgrades. 

A global race 

Another pillar of the plan stretches well beyond Europe’s borders. The Commission is positioning STIP as part of a wider geopolitical play: deepening cooperation with partners to expand global production of renewable and low-carbon fuels, while making sure European companies are not left behind in a fiercely competitive international market. Securing reliable access to sustainable fuels, and protecting EU investments abroad, is framed as an essential hedge against future supply shocks. 

What’s behind the plan? 

Behind the headline announcements sit three core pillars: 

A warning from industry and workers 

Although the plan is promising and ambitious, not everyone is fully convinced of its success. Industrial trade unions, including industriAll Europe, welcomed the Commission’s ambition but argued the plan overlooks a key reality: Europe cannot build a truly green maritime sector without reinvesting in its own shipbuilding industry. Without that link, they warn, the EU risks relying on foreign-made vessels even as it tries to decarbonise its ports and shipping routes. 

For now, the STIP marks Brussels’ most structured attempt yet to push aviation and maritime transport onto a cleaner trajectory. But for sectors dominated by long asset lifetimes, global supply chains and high capital costs, the real test will come when investment decisions, rather than policy announcements, start to shift.