The European Commission has just published its long-awaited Sustainable Transport Investment Plan . The plan forms part of the EU’s efforts to ensure a more competitive and resilient Europe that also delivers on the green transition.

At the heart of the plan lies the recognition that the EU’s ability to produce and supply more sustainable fuels is currently very limited — fuels that are essential for the green transition of both the shipping and aviation sectors.

This must be addressed — and urgently.

“The EU is in imminent danger of being overtaken by China and other ambitious players when it comes to the production of the green fuels we need to power our ships. It is therefore very positive that the Commission has focused on this issue in the STIP. The Commission proposes several sensible action points and investments, and we look forward to seeing these move from strategy to reality,” said Anna Vejlby Ib, Head of Danish Shipping’s EU Representation.

Danish Shipping has previously proposed that part of the DKK 3.8 billion that Danish shipping alone is expected to contribute annually once the sector is fully included in the EU Emissions Trading System (EU ETS) in 2026 should be earmarked to bridge the price gap between fossil and green fuels — both in production and consumption.

It is therefore encouraging that the European Commission is now urging Member States to allocate sufficient ETS revenues to the maritime and aviation sectors, including for the production of sustainable and low-emission fuels. The EU itself should follow suit and earmark ETS revenues for the green transition of shipping.

“The EU must focus on ensuring supply, price stability, and com­pe­ti­ti­ve­ness when it comes to green fuels. The EU should, among other things, set common European targets for the production of green fuels. At Danish Shipping, we view positively the Commission’s proposal on de-risking long-term contracts and introducing two-sided auction mechanisms to reduce the price gap between fossil and green fuels. This is simply a prerequisite for implementing the EU’s own initiatives such as FuelEU Maritime and ReFuelEU Aviation, which aim to reduce greenhouse gas emissions,” said Anna Vejlby Ib.

Danish Shipping also strongly supports the Commission’s ambitions to strengthen cooperation with partner countries such as Morocco, Algeria, and Egypt — where there is abundant sun, wind, and robust energy infrastructure.

“It is positive that the Commission maintains its focus on com­pe­ti­ti­ve­ness and the green transition at the same time — not least at a time where other forces are pulling in the opposite direction. Shipping is — and must remain — part of the solution. But that requires the EU to dare to invest massively in the green transition now. The world is not standing still — and neither must Europe,” said Anna Vejlby Ib.