€1 In, €5 Out: Study Shows Rail Freight’s True Value to Europe

Rail freight is no longer just a climate solution—it’s an economic win. A new EU-backed study reveals that every euro invested in sustainable rail logistics delivers up to five in societal value, reshaping how Europe thinks about decarbonising transport.

A new landmark study released in June 2025 confirms what many in the transport sector have long argued: rail freight is not only essential to decarbonising Europe’s logistics chain but also delivers substantial societal and economic value. Commissioned by Europe’s Rail Joint Undertaking and conducted by Ernst & Young (EY) with input from a broad coalition of rail and logistics stakeholders, the Net-Zero Logistics study makes a compelling case for prioritising rail in the EU’s sustainability and competitiveness agenda.

The study examines the role of rail freight across three decarbonisation scenarios—low, moderate, and high—spanning the period 2025 to 2060, focusing on five key freight corridors accounting for 65% of EU rail freight volumes, with extrapolated results applied at the EU level. Crucially, all results are benchmarked against a baseline scenario in which road and inland waterways are fully decarbonised, ensuring that rail’s contribution is not artificially inflated by weaker assumptions for competing modes.

Investing in Rail Pays Off: Up to EUR 5 in Societal Value per Euro Spent

At the heart of the study is a clear message: strategic investments in rail innovation, infrastructure, and digitalisation yield enormous returns. Under the high ambition scenario, a total investment of EUR 33 billion across five major corridors (EUR 51 billion EU-wide) would result in cumulative avoided CO₂ emissions of 121.3 million tonnes, alongside reductions in traffic congestion, accidents, and pollution. In financial terms, external costs would drop by EUR 85 billion, energy consumption would fall by EUR 74 billion, and infrastructure maintenance costs would shrink by EUR 6 billion.

"Every €1 invested in sustainable and efficient logistics generates up to €5 in societal value," the study concludes, pointing out rail freight’s pivotal role in building a more resilient and cost-effective logistics network. These findings are particularly striking given that they are conservative by design, as even ambitious road and IWW decarbonisation assumptions were included in the baseline.

Coordinated Rail Innovation and Multimodal Integration Are Key

For the benefits of rail to be fully realised, the study emphasises that isolated improvements are not enough. Instead, the high ambition scenario relies on a bundled approach, combining technological upgrades with infrastructure and governance reforms. This includes optimised infrastructure management, the wide-scale rollout of ERTMS (European Rail Traffic Management System) and Digital Automatic Coupling (DAC), and the integration of rail freight into multimodal hubs and major seaports.

According to the International Union of Wagon Keepers (UIP), one of the key partners in the study, the sector now needs a clear path toward the full integration of rail freight into competitive global logistics chains. "The credentials of rail freight in terms of efficiency and environmental friendliness no longer need to be demonstrated," said Gilles Peterhans, Secretary General at UIP. "What is needed now is a strategic, coordinated push to unlock its full potential."

Railways are by the most efficient way to transport people and goods over land for both tiny, short, and long, distances. Even 100% subsidiesed by public funds it is cheaper and more efficient than any road system. It can be built for narrow alleys or forset paths. #TrainTwitter pic.twitter.com/1bpsSDcLu3

— Wrath Of Gnon (@wrathofgnon) August 27, 2019

Policy Support Critical for Competitiveness and Climate Resilience

Beyond the figures, the study provides evidence to guide EU transport and industrial policy. Alberto Mazzola, Executive Director of CER, pointed to the need for urgent action: "Rail freight is today in a very difficult economic situation across Europe—hampered by an uneven playing field and scarce capacity on existing infrastructure. Strategic intermodal investments will improve system efficiency, cut emissions and costs, and strengthen the EU’s competitive, net-zero economy."

Giorgio Travaini, Executive Director of Europe’s Rail Joint Undertaking, echoed this urgency: "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 supports broader policy frameworks such as the Sustainable and Smart Mobility Strategy, the Clean Industrial Deal, and the forthcoming EU strategy on ports.

UNIFE Director General Enno Wiebe added that delivering on this vision requires not just investment, but the deployment of key modern technologies that can drive rail’s performance and sustainability. The challenge now, he said, is for European decision-makers to follow through with concrete funding commitments and regulatory support.

Source: UIP; European Commission