EU launches support scheme for alternative fuels

Sustainable Transport Investment Plan includes at least €2.9 billion for SAF, alternative marine fuels

Click to learn more. The European Commission has launched its own support scheme for sustainable aviation (SAF) and maritime (SMF) fuels.

In the wake of the IMO’s decision to postpone adoption of a zero and near-zero fuels support framework, the European Commission has launched its own support scheme for sustainable aviation (SAF) and maritime (SMF) fuels. Strategic, targeted investments will be made to scale up EU-based production of renewable and low-carbon fuels, unlocking the fuel volumes required to meet targets set out in the ReFuelEU Aviation and FuelEU Maritime regulations (nominally 13.2 million tons of biofuel for SAF, and 6.8 million tons of marine fuels by 2035). Funding support will be mobilised until at least the end of 2027, with rapid investments expected across several programs:

• To rapidly remove key investment barriers and bridge the financial gap in the short-term, InvestEU will mobilise at least €2 billion for sustainable alternative fuels until 2027.
• The Commission will propose €300 million by end of this year to support the production of hydrogen for sustainable aviation (SAF) and maritime (SMF) fuels through the European Hydrogen Bank.
• The Commission will support R&I projects with around €133 million under Horizon Europe.
• The Commission will mobilise €153 million for synthetic aviation fuel projects and €293 million for maritime fuel projects under the Innovation Fund.

Support areas and mechanisms, as announced in the European Commission’s official press release, 5 Nov 2025

In the SAF space, an “Early Movers Coalition” pilot project will be launched by end of this year, aggregating demand amongst the EU member states, aiming to mobilise at least €500 million for SAF production fuel projects. The Commission indicates it is also working towards a matchmaking service for fuel producers and buyers.

Our Sustainable Transport Investment Plan is a decisive step towards a sustainable future. It’s not just about cutting emissions – it’s about building a stronger, more competitive and resilient Europe that leads in sustainable transport. This ambitious plan shows the Commission’s firm commitment to scaling up renewable and low-carbon fuels in aviation and waterborne transport. Success will depend on close cooperation among Member States, industry, financiers and civil society to turn this challenge into a strategic opportunity for Europe.

Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, in his organisation’s official press release, 5 Nov 2025