Deadline: 11-February-2026
The European Union has launched a new research initiative to explore innovative climate finance solutions that can accelerate the sustainable transition of the railway sector towards net-zero emissions.
The EU’s goal set by the European Green Deal is to achieve net-zero emissions by 2050. Railways are an essential component for transport decarbonisation and while technological developments would help rail to become more competitive and attractive, significant investment would be needed in the coming years to implement the successful outcome of EU-Rail innovations. In order to achieve this ambitious goal, exploring ways to unlock new financing sources and mechanisms to support sustainable railway development is of key importance. Key expected outcomes of this Research and Innovation Actions shall include the development of new knowledge with the identification of the key challenges, drivers, and expected measurable outcomes/benefits of implementing the new concepts of environmental economy. More specifically, the studies can include identifying strategies to leverage green bonds and sustainability-linked financing instruments for railway projects; investigating solutions for an increased use of carbon credits by rail companies as a means to generate revenue and contribute to meeting climate targets in Europe; researching and providing recommendations for standardised methodologies for measuring and verifying greenhouse gas emission reductions from rail investments to facilitate access to carbon markets and results-based climate finance, including consideration of EU Taxonomy and clarification of avoided emissions from modal shift; developing reporting guidelines enabling the alignment with Corporate Sustainability Reporting Directives (CSRD) regarding the climate finance instruments; analysing current climate financing criteria and providing recommendations for bridging the gaps and better accommodate rail projects to encourage investment and use of low-carbon transport modes, and providing policy recommendations where relevant.
This EU-funded initiative under the Horizon Europe framework supports studies that will provide actionable recommendations to help the railway industry access and leverage climate finance. With a budget of EUR 600,000, the call aims to build the knowledge base needed for the rail sector to attract investments aligned with Europe’s decarbonisation agenda.
The study’s scope covers the review of existing green financing instruments to assess their applicability to the railway sector, identifying barriers and opportunities for greater utilisation. It encourages an in-depth analysis of investment criteria and processes to find effective strategies for using carbon credits as a tool to offset emissions and generate revenue. The initiative also supports exploration of innovative financing models that blend public, private, and climate-specific funding to boost investment in low-carbon rail infrastructure and operations.
Another key focus is developing harmonised guidelines for monitoring, reporting, and evaluating greenhouse gas emissions within the rail sector. These guidelines are intended to simplify compliance with regulatory requirements and ensure the integration of climate considerations into corporate decision-making processes. The studies will also explore the contribution of climate finance instruments in shifting passenger and freight transport from higher-emission modes to rail, helping achieve the goals of the European Green Deal.
Proposals for this opportunity can be submitted under the Horizon Europe framework until 11 February 2026 at 17:00 Brussels time.
For more information, visit EC.