The Clean Industrial Deal as a driver for decarbonizing European transports

Since 2020, transportation has been the primary source of greenhouse gas emissions in the European Union (EU), surpassing energy production and industry. It remains the only sector with unchanged emissions since 1990, making it crucial for decarbonizing the European economy.

Rail transport, accounting for 8% of passenger and 18% of freight transport in the EU, contributes only 0.5% of the sector’s greenhouse gas emissions. Trains have a long lifespan, averaging 40 years, compared to 15 years for cars, reducing their environmental impact over time. Additionally, the rail sector excels in the circular economy, with 95% to 99% of trains being recyclable. These factors make the rail industry a strategic Net Zero sector for the EU.

The European Commission’s strategy for sustainable and smart mobility, presented in December 2020, aims to increase rail freight traffic by 50% by 2030 and 100% by 2050 compared to 2015. It also targets doubling high-speed passenger traffic by 2030 and tripling it by 2050.

Achieving these goals requires significant financing for renovating and developing rail infrastructures and train fleets, as well as for innovation. The European rail industry advocates for maintaining and increasing the budget of the Connecting Europe Facility, which funds the Trans-European Networks – Transport (TEN-T) and the deployment of a unified signalling system (ERTMS). It also calls for a larger share of Cohesion Funds dedicated to rail and the creation of a successor to the Europe’s Rail Joint Undertaking with an increased budget for innovation in decarbonization, train automation (ATO), and AI applications in rail transport.

Simplifying regulations is also necessary to reduce the complexity of rail certification processes and limit the impact of cross-cutting legislation like the Cyber Resilience Act, the Data Act, or the AI Act. The industry needs to produce more trains, faster and cheaper, to meet growing demand and decarbonization requirements.

Industrial sovereignty is another critical aspect. Rail infrastructures are vital for military mobility and cybersecurity concerns. Furthermore, over 70% of rail investments come from public funds and public procurement.

Ensuring that public money supports European jobs and achieves the EU’s strategic objectives— independence, green industrial power, and technological leadership—is essential.

Public buyers should consider the quality of European offerings, giving more weight to non-price criteria such as social and environmental quality through the MEAT (Most Economically Advantageous Tender) principle. In 2023, across all sectors, 80% of public contracts in the EU were still based on the lowest price criterion. Besides, a true European preference principle should ensure a minimum European content of 50% for strategic sectors such as rail and zero emission buses. It should also exclude bidders from certain third countries that do not respect reciprocity rules in public market access. The revision of the Public Procurement Directives, planned for 2026, will be decisive in this regard.

In conclusion, the Clean Industrial Deal is a step in the right direction, but its success depends on concrete proposals. It can be a milestone in achieving the EU’s ambitious decarbonization strategy.

The rail industry is a strength and a strategic sector for the EU. Strengthening its competitiveness is essential, especially as the global rail equipment market grows by 3% annually and is expected to reach 240 billion euros annually by 2030, with non-European competitors implementing aggressive strategies.

About CAF (Construcciones y Auxiliar de Ferrocarriles)

The CAF Group is one of the world leaders in the construction, maintenance, and renovation of rail rolling stock. It offers tailored solutions for all types of public transport equipment, whether urban, suburban, or long-distance, promoting sustainable and environmentally friendly mobility. Through its subsidiary Solaris, CAF is also the European leader in zero-emission buses (battery, hydrogen, trolley). The group employs 16,000 people and has industrial sites in Spain, France, the United States, Mexico, Poland, and the United Kingdom. Its revenue in 2024 amounts to over 4 billion euros.