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Companies providing electrically powered rail transport services may be compensated for up to 50 percent of expenses incurred from energy efficiency measures Companies providing electrically powered rail transport services may be compensated for up to 50 percent of expenses incurred from energy efficiency measures

EC Approval for German Rail Transport Funding

The European Commission (EC) has approved, under EU State aid rules, a German scheme to support railway companies that invest in energy efficiency technologies.

The measure will promote the shift of freight traffic from road to rail and contribute to a reduction of CO2 emissions.

Margrethe Vestager, commissioner, competition policy, EC, commented, "Electrically powered rail transport is one of the most environmentally friendly transport options. By promoting a shift from road to rail, the German scheme will contribute to meeting the EU's environmental and transport objectives, without distorting competition."

In January, Germany informed the EC about a scheme to provide public support for investment in technologies to make rail transport more cost and energy efficient. The scheme has an overall budget of EUR500 million and is to run from this year to 2022.