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On 18 June, a new study commissioned by Europe’s Rail Joint Undertaking (EU-Rail) in collaboration with a Steering Committee representing European rail and logistics stakeholders (CER, CLECAT, EIM, ERFA, ETP-Alice, European Commission – DG MOVE, UIP, UIRR, UNIFE),underscores the critical role of rail freight in developing a competitive and climate-neutral transport system across the EU. The study carried out by Ernst & Young analyses different ambition scenarios and shows that a strong shift toward rail can deliver substantial reductions in CO₂ emissions, energy consumption, and external costs.

The findings demonstrate that investing in rail freight not only supports decarbonisation but also offers long-term socio-economic returns, contributing to European competitiveness.  

The study examines three ambitions scenarios (low, moderate and high) and assesses their impacts on CO₂ emissions, energy efficiency and wider socio-economic benefits, using a model endorsed by independent academia. The results, based on five major freight corridors representing 65% of EU rail freight volumes have been extrapolated to the EU level for the period 2025–2060.

The high ambition scenario includes essential measures that can foster European competitiveness driven by investments in rail freight innovations and multimodal hubs, international rule harmonisation, capacity and traffic management, and digital automatic coupling. The study also shows that these benefits remain significant even when compared to a very ambitious baseline scenario in which other modes such as road and inland waterways are fully decarbonised over the study period. In particular, the high ambition scenario demonstrates that:

• Major further CO2 emission reduction towards zero at the end of the period.   Cumulative emissions avoided of 121,3 M t CO2.
• Despite requiring €33bn for five corridors (€51bn EU-wide), it offers the best economic return in the shift to net-zero logistics. Each €1 invested in sustainable logistics yields €5 in societal value.
• Better integration of rail freight across logistic chains development cuts externalities like road congestion and accidents, saving €85bn in external costs and reducing carbonisation costs by €44bn.
• Harnessing rail energy efficiency cuts consumption by €74bn (3344 PJ). The findings highlight that rail freight development can substantially reduce the costs associated with decarbonising transport of goods

The study outlines strategic measures and investment needs, reinforcing rail’s position as the backbone of sustainable logistics in Europe.

The full study and policy paper are available below.

An online launch event is scheduled for 30 June. Register here.

Pleas find the press release here.