European Commission’s sustainable transport plan signals major shift but faces funding and policy hurdles in maritime decarbonisation

The European Commission’s recently unveiled Sustainable Transport Investment Plan (STIP) has been broadly welcomed by the maritime sector as a constructive initial step towards the decarbonisation of waterborne transport. Presented in early November 2025, STIP sets a strategic framework aimed at accelerating the uptake of renewable and low-carbon fuels, particularly focusing on aviation and maritime transport as key sectors in the EU’s energy transition agenda.

According to the Commission, meeting the ambitious targets mandated by the ReFuelEU Aviation and FuelEU Maritime regulations will require around 20 million tonnes of sustainable alternative fuels by 2035. This demand translates into an estimated investment need of approximately €100 billion to scale production and supply, far exceeding the €2.9 billion that STIP aims to mobilise by 2027. Commissioner Maria Luís Albuquerque stressed the importance of boosting domestic development and production capacities to strengthen the EU’s strategic autonomy, especially as global competitors like China and the United States are advancing rapidly in this arena.

European shipowners have generally greeted the plan as a positive initiative identifying many gaps in current policy and financial frameworks. Sotiris Raptis, Secretary General of the European Community Shipowners’ Associations (ECSA), described STIP as placing clean fuel investment at the heart of competitiveness, crucial for retaining industrial capacity, reducing energy dependencies, and progressing towards net-zero emissions. Similarly, the Union of Greek Shipowners (UGS) acknowledged the plan’s timely recognition of key industry concerns including fuel availability, technological neutrality, and investment needs.

However, significant concerns remain over the sufficiency of the funding and certain structural aspects of the plan. The €2.9 billion figure, while a start, represents only a small fraction of the investment required to close the substantial cost gap between conventional and clean fuels, reported to be up to fourfold. Greek shipowners pointed out that the proposed double-sided auction mechanism may not suitably support bulk and tramp shipping segments, which rely heavily on spot-market operations rather than long-term contracts. Moreover, the absence of a binding mandate on fuel suppliers to guarantee the availability of Sustainable Marine Fuels (SMF) across European ports remains a glaring omission, especially given such mandates exist in the aviation sector.

On a more positive note, the Commission’s explicit recognition of liquefied natural gas (LNG) as a transitional fuel aligns with its Green Deal commitments and offers a pragmatic pathway to reduce emissions in the near term. The plan also promotes bilateral partnerships and the establishment of green shipping hubs in global markets, both seen as vital to accelerating fuel production and infrastructure build-out.

Additionally, industry representatives have welcomed the Commission’s exploration of innovative financial instruments beyond existing measures such as the Innovation Fund. Proposals to leverage national Emissions Trading System (ETS) revenues, leveraging the maritime sector’s significant contribution of €9 billion, to help bridge the cost gap with low-carbon fuels have been particularly praised. ECSA calls for complementary binding fuel supplier requirements to ensure that market availability matches financial incentives.

The inclusion of small and medium-sized enterprises (SMEs) and recognition of the diverse operational models within the shipping sector also marks an important advancement. The bulk and tramp sector alone accounts for 85% of global seaborne trade and constitutes two-thirds of European shipping, operating under notably different business models compared to liner shipping. Hence, the acknowledgement of these realities, particularly through the promotion of flexible green shipping hubs, is viewed as a vital aspect for enabling the sector’s sustainable transition.

Administrative simplification remains a priority for the sector, with a commitment from the Commission to review reporting obligations and streamline processes welcomed, particularly by SMEs. The move towards harmonising monitoring, reporting, and verification (MRV) systems for ETS Maritime and FuelEU Maritime is expected to reduce bureaucratic burdens and improve operational efficiency.

Looking ahead, ECSA urges the EU to align its climate legislation fully with forthcoming international measures agreed through the International Maritime Organisation (IMO), where the EU has been actively engaged in securing a landmark 2050 net-zero emissions deal. Ensuring a level playing field at the global scale is deemed essential to maintain the competitiveness of European shipping.

In summary, while the European Commission’s Sustainable Transport Investment Plan lays critical groundwork for accelerating the maritime sector’s energy transition, industry leaders caution that more substantial funding, binding supply mandates, and policy coherence with international frameworks will be necessary. The plan represents an important signal of intent and a framework for future efforts but must evolve to meet the scale and complexity of decarbonising one of Europe’s most vital transport sectors.