Through the European Commission’s Modernisation Fund, Romania is receiving financial support to acquire zero-emission rail vehicles. Totalling EUR 1.1 billion, these funds are available to operators in the rail, maritime, and inland waterway transport sectors who hold a valid transport licence, said Sebastian Popescu, Partner and Grants & Incentives Advisory Leader at Ernst & Young, during Railway Days 2025. The event is taking place on 14–15 October in Bucharest and is organised by Club Feroviar.
To acquire rail vehicles, Romania can benefit from two schemes – both covering rail, maritime, and inland waterway transport modes.
One of the schemes has a total budget of EUR 299 million for the period 2025–2028. Sub-measure 2, dedicated to rail freight, has a EUR 90 million budget, allowing for a maximum of 10 vehicles per beneficiary and a maximum grant of EUR 18 million per company. Eligible costs include the difference between the price of zero-emission rolling stock and that of comparable EU-standard units. VAT is not eligible.
Beneficiaries must be rail freight operators holding a rail transport licence and safety certificate, and be micro to large enterprises registered in Romania. This measure covers the purchase or replacement of zero-emission freight locomotives and/or wagons.
“These funds are available for the procurement of new locomotives and other zero-emission rail freight rolling stock. In the near future, the applicant’s guide will be published – a necessary document for companies to prepare and submit their funding applications as part of the call,” Sebastian Popescu explained. It is estimated that companies will be able to submit their documentation for European funding during the first quarter of 2026.
Another scheme is a state aid programme aimed at the acquisition of zero-emission machinery and equipment. For rail transport, this applies to shunting locomotives and shunting equipment. Rail companies can benefit from this funding, which has a total budget of EUR 299 million, intended for the replacement of energy-inefficient machinery and equipment with zero-emission alternatives.
Another section of Sub-measure 2 focuses on the replacement of vehicles used in auxiliary rail and water transport services, with a dedicated budget of EUR 99 million and a maximum grant of EUR 30 million per enterprise. Eligible costs include the replacement of vehicles that have been in operation for at least one year in auxiliary rail and port activities with zero-emission vehicles. VAT is excluded.
Beneficiaries include rail shunting and port service operators, as well as micro to large enterprises registered in Romania. One of the most advantageous options for rail operators is to purchase or replace rolling stock with electric shunting locomotives.
“Eligible beneficiaries are licensed transport operators with valid national licences or certificates in road and rail freight transport, as well as maritime and inland waterway sectors,” added Sebastian Popescu.
The Modernisation Fund supports the modernisation of energy systems and the improvement of energy efficiency in 13 lower-income EU Member States*. Established in 2018 for the 2021-2030 period, it aims to help the beneficiary Member States achieve their climate targets and the objectives of the European Green Deal.
*The beneficiary Member States are Bulgaria, Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia.
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