On 5 November, the European Commission published its long-awaited Sustainable Transport Investment Plan (STIP). The plan aims to accelerate the deployment of sustainable fuels in aviation and waterborne transport sectors, such as e-methanol, ammonia and hydrogen and sustainable aviation fuels (SAFs).

While industriAll Europe welcomes the Commission’s ambition, the plan risks overlooking a ‘fundamental link’: green shipping cannot exist without a strong European shipbuilding industry based on local production.

The real test for Europe’s shipbuilding and maritime supply chains will be whether the plan translates into good-quality jobs in Europe. This region, home to world-leading expertise in clean propulsion, retrofitting and offshore engineering, now faces a transition requiring massive vessel conversions and infrastructure upgrades.

“The Sustainable Transport Investment Plan could be a lifeline for European shipbuilding and aviation, but only if the funds are channelled towards industrial production, innovation and high-quality jobs in Europe,” said Isabelle Barthès, industriAll Europe’s Deputy General Secretary.

However, the STIP lacks strong measures to redirect revenues from the EU Emissions Trading System (ETS) and other thematic funds into retrofitting existing vessels. Investing in Europe’s own production capacity is the only way to secure industrial resilience and quality employment.

“Europe must not repeat the mistakes of the past decade, when public funding boosted demand for new vessels but the work went to Asia. This time, we need a European industrial framework that guarantees value creation and jobs in Europe” added Isabelle Barthès.

Regarding aviation, the STIP recognises that SAFs are one of the most effective short-term tools to cut emissions. Accelerating the production of EU-made sustainable fuels can strengthen industrial competitiveness, reduce dependency on imported fossil fuels, and support the transition towards climate neutrality by 2050.

However, the current level of EU funding is far too limited to meet the required investment scale. Without stronger public and private commitments, Europe risks lagging behind in SAF production capacity. For aerospace and aviation workers, the transition must be just, guaranteeing high-quality jobs and creating new ones in sustainable fuels while ensuring that no worker is left behind.

The STIP foresees the mobilisation of a specific amount of funding for aviation and maritime projects, but these funds are not new. They draw largely on existing instruments such as the Innovation Fund, InvestEU, Horizon Europe and the Hydrogen Bank. While this is a positive start, it represents only a fraction of the estimated €100 billion investment required to green the global fleet by 2035.