EU-ETS revision: a call to recognise rail's contribution to decarbonisation

Ahead of the publication of the European Commission's proposal to revise the EU Emissions Trading System (ETS), Europe’s rail and Combined Transport sectors collectively ask that the ETS remains true to its spirit: by earmarking its revenues to reward the sectors that have effectively decarbonised and hold accountable those that have not.

Unlike road or aviation, rail already runs largely on decarbonised electricity, and delivers system-wide emission savings when freight shifts from road to rail and combined transport, and when passengers shift from short-haul aviation or private cars to rail. This makes it future-ready from a climate standpoint and far less dependent on offset mechanisms.

To ensure rail operations remain competitive and attractive to customers, the joint statement calls for the following measures:

• Parts of the revenues of the EU ETS must be dedicated to supporting the efforts of rail at EU level.
• At national level, more ETS revenues should be allocated for rail, with Member States earmarking some of the revenues to rail investment and other instruments in order to reduce the uneven playing field between modes.
• The ETS revision should move from discretionary good practice to a clearer obligation: ETS, ETS2, Innovation Fund, Modernisation Fund, Social Climate Fund and any new ETS-based investment instruments should prioritise rail projects that deliver measurable domestic carbon avoidance.

Read below the joint statement.