EU Transport Plan Sets Out First Steps To Boost Green Fuel Production For Planes & Ships - CleanTechnica

The EU’s newly published Sustainable Transport Investment Plan (STIP) outlines initial measures to boost the production of green e-fuels for aviation and shipping, recognizing their critical role in decarbonizing these sectors. The plan proposes establishing an EU-wide double-sided auction mechanism, modeled on a pilot e-Sustainable Aviation Fuel (e-SAF) auction, to provide financial incentives and kickstart e-fuel production. However, Transport & Environment (T&E) stresses that these auctions should be exclusively for e-fuels, warning that including biofuels—an already mature industry—could divert limited resources and hinder the growth of the nascent e-fuels market. The plan also relies on existing funding tools like the Hydrogen Bank and Innovation Fund, which have yet to significantly support e-fuels projects due to high costs and lack of long-term contracts. T&E highlights several shortcomings in the STIP, including its soft stance on biofuels and continued promotion of biomethane in shipping, which could mis