22 July 2022


On 19 July, the European Commission approved, under EU State aid rules, a €285 million Spanish scheme to encourage freight transport to shift from road to rail. The scheme will be funded through the Recovery and Resilience Facility (‘RRF').

The purpose of the scheme is to encourage freight transport to shift from road to rail with the objectives of lowering CO2 emissions.  The scheme will support (i) the construction, adaptation or improvement of loading dock and rail freight terminals, as well as their connections with the main national railway network; and (ii) the acquisition or refurbishment of wagons for rail freight transport, including those adapted to the provision of rail motorway services.

Under the scheme, which will run until 31 December 2025, the support will take form of direct grants to companies active in rail freight sector in Spain. The Commission assessed the measure under EU State aid rules and found that the scheme is necessary and proportionate to promote the use of rail transport, and will have an 'incentive effect' as the beneficiaries would not carry out the investments in the absence of the public support. The Commission therefore concluded that the measure will contribute to transport coordination and facilitate the shift of freight transport from road to rail, and approved the scheme under EU State aid rules.

Source: European Commission