EU Commission promotes high-speed rail expansion and clean fuels investment

The European Commission has unveiled a new transport package aimed at accelerating high-speed rail expansion and scaling up renewable and low-carbon fuels in aviation and maritime sectors. The plan supports the EU’s broader goals to build a more efficient, cleaner, and better-connected transport system by 2040. The package highlights infrastructure expansion opportunities, regulatory changes, and new funding strategies that could directly impact rail suppliers, fuel producers, and transportation technology providers across the continent.

A central component of the initiative is the High-Speed Rail Action Plan, which lays out measures to expand and integrate Europe’s rail network. The goal is to make high-speed rail the preferred alternative to short-haul flights, helping reduce congestion and emissions while strengthening economic links between regions. The Commission aims to connect major nodes on the Trans-European Transport Network (TEN-T) with speeds of 200 km/h or more. This would cut travel times significantly — reducing Berlin – Copenhagen from seven hours to about four, and Sofia–Athens from nearly 14 hours to around six. New cross-border routes are also planned, including more seamless travel between Paris, Madrid, and Lisbon, as well as improved links across the Baltic region.

To achieve this, the Commission outlines several priority actions, including removing cross-border bottlenecks with binding timelines by 2027, coordinating financing strategies, improving conditions for rail industry competitiveness, and reinforcing EU-level governance and standardization. The expanded high-speed network would also free conventional rail capacity for freight, night trains, and military mobility, supporting tourism and European industrial competitiveness.

The second part of the transport package, the Sustainable Transport Investment Plan (STIP), focuses on boosting the supply and deployment of renewable and low-carbon fuels in aviation and maritime transport. Meeting RefuelEU Aviation and FuelEU Maritime targets will require around 20 million tonnes of sustainable fuels by 2035 and roughly €100 billion of investment. To support this effort, the EU plans to mobilize at least €2.9 billion by 2027, including €2 billion through InvestEU for sustainable fuel projects, €300 million via the European Hydrogen Bank, €446 million from the Innovation Fund for synthetic fuel development, and €133.5 million in research funding under Horizon Europe.

The Commission is also preparing an eSAF Early Movers Coalition pilot by late 2025 to raise at least €500 million for synthetic aviation fuels. By encouraging domestic production of biofuels and e-fuels, the EU aims to reduce reliance on imported fossil fuels, maintain industrial competitiveness, and position Europe as a leader in the global clean energy transition.