What is STIP and why is it key to accelerate the decarbonisation of transport in Europe?
The European Sustainable Transport Investment Plan (STIP) is a proposal aimed at mobilising and coordinating investment in the transport sector under a single framework.
This strategic European initiative is key to unlocking the financing urgently needed to decarbonise the transport sector, particularly aviation and maritime transport, which are particularly difficult to decarbonise.
For this reason, T&E has submitted a series of recommendations to the call for evidence recently opened by the European Commission.
The STIP should focus on:
1. Unlocking e-fuels for aviation and shipping
● At a time when investments must be strategically prioritised, STIP should support aviation and shipping fuels that meet three core criteria of sustainability, scalability and sovereignty (made-in-EU) in the energy transition. E-fuels or Renewable Fuels of Non-Biological origin (RNFBOs) are the only fuel types that meet these criteria.
● E-fuels urgently need a Revenue Certainty Mechanism (RCM), whether in the form of double-sided auctions with a market intermediary or Contracts for Difference (CfDs). A well-designed RCM is paramount for the EU e-fuel projects to reach Final Investment Decisions (FIDs), in time to meet the goals of REFuelEU and FuelEU Maritime regulations.
● Earmarking 25% of shipping and aviation ETS revenues would provide suffi cient support to green e-fuels production in Europe, with cumulatively €37 billion in carbon pricing revenues available for public investments between 2030 and 2039. STIP should provide such guidance to be operationalised through EU and national legislation.
T&E response to the call for evidence on STIP September 2025
● Public fi nance institutions like the EIB should be mobilised to clearly commit to supporting the creation of an EU e-fuels industry and use their full potential in terms of technical and fi nancial assistance.
2. Securing AFIF as a key tool for clean transport infrastructure
● The Alternative Fuels Infrastructure Facility (AFIF) has been an extremely important tool to roll out clean transport infrastructure. All modes of transport rely on AFIF to electrify or adopt hydrogen and e-fuels, but its last cut-off date is in March 2026, after which no more calls will be launched.
● STIP must urgently provide EUR 1.5 billion to AFIF to continue operating until the end of MFF 2021-27, and it should call for its renewal under the MFF 2028-34 to complete the decarbonisation of TEN-T.
3. Completing the electrifi cation of TEN-T
● For road transport, although 80% of the TEN-T Core network is covered with ultra-fast charging stations, remaining gaps need to be fi lled as soon as possible. A continuation of AFIF calls is needed to support charging deployment in these less attractive regions.
● Support for Made in EU batteries: STIP should secure Europe’s battery industry in the short term while setting a clear mid- to long-term trajectory for a competitive, sustainable EU battery ecosystem. The immediate priority is launching the EU Battery Booster channeling emergency support (production aid) to help EU pioneers scale up. In the medium term, output-based support must be mainstreamed under the European Competitiveness Fund, backed by clear State aid guidelines covering capex and performance-based support to create a strong Made-in-EU business case.
● For rail transport, STIP should look into ways of de-risking rolling stock projects following the spirit of InvestEU loans. Various options such as a small but dedicated call for rolling stock, a rolling stock bank or a European rolling stock company should be explored. STIP should also stress the need to harmonise rolling stock regulations across Europe to achieve a more interoperable fl eet in a cost-effective way.
