CER Essay launch event 'Leveraging the EU Emissions Trading System to fund railway projects'

A new CER Essay explores how the EU’s carbon market can serve as an innovative funding instrument to support railway investments dedicated to decarbonisation, energy efficiency and modal shift.

The research, carried out by Bocconi University’s GREEN Centre, analyses the economic rationale for rewarding rail’s CO₂ savings, evaluates case studies ranging from high-speed rail expansion to Digital Automatic Coupling and port line electrification and offers policy recommendations on how EU Emissions Trading System revenues could complement existing rail funding schemes.

A discussion on how market-based climate finance could accelerate the development of a modern, interoperable and low-carbon European railway network will be organised on 28 January 2026 at the European Parliament.