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EU Commission sets out its Sustainable Transport Plan

In the beginning of November 2025, the European Commission published its Sustainable Transport Investment Plan, also known as the STIP, which is a landmark initiative that is designed to accelerate the energy transition in both the aviation and maritime transport sectors. The STIP plans to jump-start the supply of renewable and low-carbon fuels with €2.9 billion in EU funding by 2027, which includes hydrogen based and synthetic alternatives.

Aviation and shipping together account for over a quarter of EU transport emissions. Decarbonising these sectors is essential for meeting the EU’s climate neutrality target by 2050. Under the FuelEU Maritime and ReFuelEU Aviation regulations, Europe must secure 20 million tonnes of sustainable fuels annually by the year 2035, including 6.8 million tonnes of e-fuels and 13.2 million tonnes of advanced biofuels.

To bridge the investment gap, the EU has allocated significant funding:

• €2 billion via the InvestEU to support large-scale production of sustainable alternative fuels.
• €300 million via the European Hydrogen Bank auction dedicated to hydrogen-based fuels for aviation and maritime sectors.
• €133 million under Horizon Europe to support the R&D into next-generation fuel technologies.
• €293 million has also been allocated under the Innovation Fund for maritime fuel projects, highlighting the EU’s commitment to decarbonising shipping.

The STIP funding represents a significant opportunity to modernise facilities and develop clean propulsion technologies. Leading European yards are already investing in hydrogen fuel cells and hybrid systems, supported by EU programs like Horizon European and the Innovation Fund.

With €2.9 billion in funding available by 2027, projects can focus on R&D for alternative fuels, retrofitting existing fleets, and upgrading marina infrastructure to meet future sustainability standards. This includes hydrogen propulsion, methanol-based systems, and hybrid electric solutions that are becoming increasingly relevant for compliance and innovation in the yachting sector.

Refit yards are also offering sustainability focused upgrade programs, enabling yacht owners to reduce emissions and align with upcoming EU regulations. These developments are reinforced by industry statements from the European Boating Industry (EBI), which confirm that STIP includes recreational craft for the first time, creating direct funding pathways for yacht-related projects.