A new study commissioned by Europe’s Rail Joint Undertaking (EU-Rail) highlights the significant contribution of rail freight to the development of net-zero logistics chains across Europe. The study has been carried out by Ernst & Young in collaboration with a Steering Committee representing European rail and logistics stakeholders*.
The study confirms that greater integration of rail freight delivers significant reductions in CO₂ emissions and externalities such as congestion and accidents, while also generating long-term energy savings and socio-economic returns.
The ‘Net-Zero Logistics: The Contribution of Rail Transport’ study, carried out by Ernst & Young analyses 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 high ambition scenario demonstrates that:
- Despite requiring EUR 33 billion for five corridors (EUR 51 billion EU-wide), it offers the best economic return in the shift to net-zero logistics. Each EUR 1 invested in sustainable logistics yields EUR 5 in societal value;
- Major further CO2 emission reduction towards zero at the end of the period. Cumulative emissions avoided of 121,3 M t CO2;
- 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 EUR 44 billion; and
- Harnessing rail energy efficiency cuts consumption by EUR 74 billion.
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 outlines strategic measures and investment needs, reinforcing rail’s position as the backbone of sustainable logistics in Europe.
“The results confirm that investing in rail freight is not only a key lever for decarbonisation but also an opportunity to improve logistics efficiency and competitiveness across Europe. The study offers a solid evidence base for policy decisions in the context of the Clean Industrial Deal and the Sustainable and Smart Mobility Strategy,” Giorgio Travaini, Executive Director of Europe’s Rail Joint Undertaking, said.
The study also shows that the 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. The positive results are thus conservative and represent a lower bound of what could be achieved through a coordinated shift across transport modes to net-zero logistics.
The findings highlight that the contribution of rail freight and its development can substantially reduce the costs associated with decarbonising transport of goods.
* The Steering Committee consisted of CER, CLECAT, EIM, ERFA, ETP-Alice, UIP, UIRR, UNIFE, with the European Commission (DG MOVE) and EU-Rail. A group of academics has been formed to frame the development of the methodology.
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