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
Also in this section
18 March 2026
The second fossil-fuel price shock in four years can be a much-needed catalyst for investment in the sector
9 March 2026
Hydrogen has not stalled in the UK because the technology does not work. The problem is that the system around it does not yet move at the speed required
4 March 2026
Turmoil in Middle East reminds nascent clean hydrogen sector that its future prospects are dependent on global energy markets and geopolitics
25 February 2026
Low-carbon hydrogen and ammonia development is advancing much more slowly and unevenly than once expected, with high costs and policy uncertainty thinning investment. Meanwhile, surging energy demand is reinforcing the role of natural gas and LNG as the backbone of the global energy system, panellists at LNG2026 said






