GAMA Proposes EU Investment Plan to Support Sustainable Aviation

Europe certified the world’s first fully electric aircraft, establishing an early lead in the race toward sustainable aviation. However, a severe capital shortage over the past two years has threatened to hollow out the continent’s pioneering eVTOL sector. In response to this critical juncture, the General Aviation Manufacturers Association (GAMA) has issued an urgent industrial blueprint.

On April 22, 2026, GAMA released a new white paper titled “Wings of Change: A Strategy for Competitiveness, Innovation, Industry, and Investment in Europe’s Sustainable Aviation Sector.” According to the official press release, the document aims to anchor clean aviation manufacturing, encompassing electric, hybrid-electric, and hydrogen-powered flight, firmly within Europe.

We at AirPro News have reviewed the proposals, which are designed to integrate with the European Union’s ongoing Clean Industrial Deal. The white paper outlines actionable measures to mobilize capital, streamline Regulations, and prevent Europe from losing its competitive edge to heavily subsidized markets in the United States and China.

The European eVTOL Capital Crisis

Recent Insolvencies and Market Turmoil

To understand the urgency of GAMA’s 2026 white paper, it is essential to examine the financial turbulence that has recently shaken the European aerospace sector. GAMA’s press release explicitly warns that insufficient access to capital and limited industrial scale-up support have forced several companies into bankruptcy or relocation.

Industry research highlights the high-profile insolvencies of leading German eVTOL developers in late 2024 and early 2025. Lilium filed for insolvency in October 2024 after failing to secure government loan guarantees, ultimately entering a second bankruptcy phase in February 2025 when rescue funding failed to materialize. Similarly, Volocopter filed for insolvency in December 2024, transitioning to regular insolvency proceedings by March 2025. These events underscore the precarious financial reality for capital-intensive aviation Startups operating without robust state backing.

GAMA’s Blueprint for Recovery

Key Proposals from “Wings of Change”

Building upon a previous white paper published in April 2024, GAMA’s latest strategy outlines specific measures for EU policymakers to support the long development cycles inherent in aircraft manufacturing. According to the press release, the white paper proposes a “One-Stop-Shop” investment platform under the proposed EU Competitiveness Fund. This centralized platform would organize research and development, scale-up, and manufacturing funding from both EU institutions and Member States to attract private investors.

Additionally, GAMA advocates for a shift toward performance-based funding tied directly to technological milestones and aviation Certification progress. The organization also stresses the need for regulatory efficiency at the European Union Aviation Safety Agency (EASA), calling for a predictable, flat-fee certification structure for electric and hybrid propulsion systems.

To stimulate early market adoption, the white paper recommends integrating environmental criteria into Public Service Obligation (PSO) tenders and directing revenues from the EU Emissions Trading System (ETS) toward sustainable aviation infrastructure.

“Without stronger Investments frameworks and regulatory backing, Europe risks losing ground in a sector that is making headway in reducing environmental impacts and growing economic opportunity.”

Global Competitiveness and the Clean Industrial Deal

Aligning with EU Strategy

The GAMA proposals arrive as the European Commission continues to roll out its Clean Industrial Deal, introduced in February 2025. Industry reports note that this deal includes an Industrial Decarbonization Bank with a €100 billion budget and an expansion of the InvestEU program. GAMA is actively lobbying to ensure the sustainable aviation sector receives dedicated focus within this broader €100 billion framework.

The white paper has garnered broad consensus across the European sustainable aviation ecosystem. According to the release, it is backed by major legacy manufacturers, infrastructure developers, and startups, including France’s Safran and Daher, Germany’s Vaeridion and ERC-Systems, the UK’s Vertical Aerospace and ZeroAvia, Switzerland’s H55, and Slovenia’s Pipistrel Aircraft.

AirPro News analysis

We observe that the core of GAMA’s white paper is fundamentally a geopolitical call to action. While European manufacturers initially led the way in certifying electric propulsion, the lack of cohesive government support contrasts sharply with the environment in competing nations. Industry analysts note that U.S. and Chinese eVTOL companies receive significant backing from government and defense agencies, such as the U.S. Department of Defense.

If the European Union does not adopt measures similar to the proposed “One-Stop-Shop” investment platform or performance-based funding, the center of gravity for sustainable aviation manufacturing will likely shift permanently to the U.S. and China. The recent insolvencies of European pioneers serve as a stark warning that technological leadership cannot survive without matching financial and regulatory infrastructure.

Frequently Asked Questions

What is the “Wings of Change” white paper?

Released by GAMA on April 22, 2026, it is an industrial blueprint aimed at securing clean aviation manufacturing in Europe through improved investment frameworks and regulatory efficiency.

Why is the European eVTOL sector struggling?

Despite early technological leads, European eVTOL companies have faced severe capital shortages. High-profile startups like Lilium and Volocopter entered insolvency proceedings in late 2024 and early 2025 due to a lack of government loan guarantees and scale-up support.

How does GAMA propose to fix the funding gap?

GAMA proposes creating a centralized “One-Stop-Shop” investment platform under the EU Competitiveness Fund, shifting to performance-based funding, and utilizing revenues from the EU Emissions Trading System (ETS) to build sustainable infrastructure.

Sources:

• General Aviation Manufacturers Association (GAMA)