Unlocking the Full Potential of the EU STIP
Copyright: PtX Lab Lausitz / Toni Kretschmer
From Quotas to Markets: How the EU STIP Can Enable the Ramp-Up of the eSAF Market
With its €2.9 billion Sustainable Transport Investment Plan (STIP), the European Union sends a strong political signal to accelerate the decarbonisation of aviation and maritime transport. While the plan mobilises substantial funding and builds on established instruments, its current structure risks falling short of enabling a genuine market ramp-up for synthetic aviation fuels (eSAF).
Around 70% of the STIP budget is earmarked for research, technology development and investment de-risking, while only about 30% directly targets fuel production. Given the persistent cost gap between eSAF and conventional jet fuel, this allocation is insufficient to support the volumes required under the 2030 mandate (ReFuelEU). As a result, many first-mover projects will remain unable to reach final investment decisions.
In our new position paper, we analyse the STIP funding architecture and identify structural gaps that limit its effectiveness. The paper highlights the proposed double-sided auction as a promising instrument, capable of providing full-cost coverage and long-term offtake security. However, to unlock its full potential, the mechanism must be deployed rapidly, scaled beyond a pilot phase, and designed to reflect market realities including long contract durations and partial upfront payments to improve bankability.
A targeted evolution of the STIP, potentially complemented by interim national CAPEX and OPEX support schemes, is required to translate regulatory quotas into a functioning eSAF market. Doing so, is essential not only to meet Europe’s 2030 climate targets, but also to secure the EU’s competitiveness in the emerging global clean-fuels economy.
Unlocking the Full Potential of the EU STIP – From Quotas to Markets: How the EU STIP Can Enable the Ramp-Up of the eSAF Market
PtX Lab Paper | 12/2025 | Topic: PtX Policy & Markthochlauf | 11 Pages
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Felix Schmermer
Head of Section PtX Policy & Market Ramp-Up
+49 162 72 44 695
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