Supporting Europe’s CCU Fuels: Key Take-Aways from the Sustainable Transport Investment Plan

On 5 November, the European Commission released its Sustainable Transport Investment Plan (STIP), signalling a strengthened focus on renewable and low-carbon fuels in Europe.

Being a communication, and not legislative proposal, STIP doesn’t introduce immediate legal obligations, but it does outline additional EU support and funding measures to accelerate the uptake of renewable and low-carbon fuels, particularly in aviation and shipping.

Key elements:

🔵 Aviation and maritime at the centre – Led by DG MOVE, STIP primarily addresses the upscaling of CCU fuels in aviation and maritime transport, with the goal of de-risking investments for Synthetic Aviation Fuels (eSAF) and Synthetic Maritime Fuels (eSMF).

🔵 Focus on CCU fuels – STIP recognises that many renewable or low-carbon fuel technologies currently have low market maturity. Current production costs are estimated at 2–10 times those of fossil fuels, and the plan seeks to start addressing this gap.

🔵 Stable regulatory framework – The Commission confirms that the existing EU rules supporting renewable fuel demand remain in place and will continue to provide a reliable long-term framework for the sector.

🔵 Targeted funding mechanisms – STIP introduces or complements funding mechanisms to accelerate investment providing:
• €2B – InvestEU
• €446M – Innovation Fund
• €300M – Hydrogen Bank
• €133M – Horizon Europe
• €500M – Early Movers Coalition (from Member States)
In total: €2.9B EU + €500M from Member States contributions. Additionally, STIP highlights the potential expansion of double-sided auctions to further mitigate project risk.

🔵 Potential IPCEI for CCU fuels – By end of November 2025, the Joint European Forum will consider potential IPCEI candidates in renewable and low-carbon aviation and maritime fuels, potentially creating flagship initiatives for the sector.

🔵 Other complementary actions – The plan mentions ongoing work on simplifying rules, Industrial Accelerator Act proposals, book-and-claim options, and concluding Energy Taxation Directive negotiations.

CO₂ Value Europe views STIP as a constructive step for the CCU community. It addresses key investment barriers by providing targeted funding and de-risking measures. At the same time, broader structural challenges remain, and fully scaling the sector will require complementary, long-term policies to help the sector compete with fossil fuels monopolies.
We look forward to collaborating with EU institutions to ensure effective implementation and to strengthen the business case for CCU fuels as a scalable solution for Europe’s energy transition.

Find more about STIP here, and the European Commission’s factsheet here.