The European Banking Federation and UNEP FI have published a policy brief on transition pathways for the EU aviation and shipping subsectors, focusing on how policy can unlock financing at scale for two hard-to-abate parts of transport. The brief, informed by discussions held around the EU Sustainable Transport Investment Plan, says current funding falls short of what is needed and that investment is constrained by high capital intensity, long asset lives, fragmented value chains, and uncertainty over technology pathways and future demand. It identifies three main policy priorities. First, it calls for more coherent and predictable EU and national frameworks, including stable sustainable aviation fuel mandates and allocation mechanisms in aviation and better alignment between the European emissions trading system and the Renewable Energy Directive in shipping. Second, it points to measures that would strengthen the investment environment, such as clearer demand signals, support for innovation and scale-up, lower administrative burdens, better infrastructure planning, and ecosystem approaches such as green corridors. Third, it highlights the need for blended finance, guarantees, and market-based tools such as contracts for difference or auctions to improve bankability, particularly for first-of-a-kind sustainable aviation fuel facilities, vessel retrofits, and alternative fuel infrastructure. The brief also sets out action pathways for banks, including tailored financing structures, support for clients' transition strategies, and participation in industry and policy dialogue. The brief points to upcoming EU developments, including the Industrial Decarbonisation Bank, further emissions trading system work, and implementation of ReFuelEU Aviation and FuelEU Maritime, as the next policy context for stakeholder engagement. European Banking Federation and UNEP FI said they will continue convening financial institutions, industry, and policymakers through this sectoral policy brief series and related initiatives.
European Banking Federation2026-05-29
European Banking Federation and UNEP FI release policy brief on financing the EU aviation and shipping transition
The European Banking Federation and the UN Environment Programme Finance Initiative published a policy brief on transition pathways for EU aviation and shipping, warning that funding is insufficient due to high capital intensity, long asset lives, fragmented value chains, and technology and demand uncertainty. It sets three priorities: more coherent EU and national frameworks, measures to strengthen the investment environment, and expanded blended finance, guarantees, and market-based tools to improve bankability, especially for first-of-a-kind projects. It also notes upcoming EU initiatives, including the Industrial Decarbonisation Bank, further emissions trading system work, and implementation of ReFuelEU Aviation and FuelEU Maritime, as key contexts for stakeholder engagement.