EU confronts sustainable fuels ‘market failure’

Policymakers launch €2.9b package aimed at driving investment to meet its aviation and maritime sustainable fuel targets

The EU has launched a package of measures aimed at kickstarting investment in the production of hydrogen-based e-fuels and other sustainable fuels, as it confronts a “market failure” and the prospect of missing its targets. The package, called the Sustainable Transport Investment Plan (STIP), is aimed at clean fuels for aviation and maritime sectors. To meet the EU's sustainable fuel targets, under the RefuelEU Aviation and FuelEU Maritime Regulations, Europe needs to produce around 20mt/yr of sustainable fuels—biofuels and e-fuels—by 2035, according to the European Commission. “Despite Europe having the largest project pipeline ready for e-fuel production, investors hesitate to take f