Romania Rail Funding: €1.1B for Zero-Emission Vehicles

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Introduction

Romania will receive EUR 1.1 billion from the European Commission’s Modernisation Fund to support the acquisition of zero-emission rail vehicles. This funding is available to rail, maritime, and inland waterway transport operators with valid transport licenses.

Funding Allocation

Romania can utilize the funds through two schemes that cover rail, maritime, and inland waterway transport. One scheme has a total budget of EUR 299 million spanning from 2025 to 2028. Sub-measure 2, which is focused on rail freight, has a budget of EUR 90 million. This sub-measure allows for a maximum of 10 vehicles per beneficiary and a maximum grant of EUR 18 million per company.

Eligible Projects and Costs

Eligible costs include the difference in price between zero-emission rolling stock and comparable EU-standard units. Value Added Tax (VAT) is not eligible. Beneficiaries of this scheme must be rail freight operators who hold a rail transport license and safety certificate and are registered in Romania as micro to large enterprises. The funds are for the purchase or replacement of zero-emission freight locomotives and/or wagons. Companies are expected to submit documentation for European funding during the first quarter of 2026.

Additional Funding Programs

Another scheme is a state aid program for the acquisition of zero-emission machinery and equipment. For rail transport, this includes shunting locomotives and equipment. This funding has a total budget of EUR 299 million, intended for replacing energy-inefficient machinery and equipment with zero-emission alternatives. Another section of Sub-measure 2 has a dedicated budget of EUR 99 million and a maximum grant of EUR 30 million per enterprise, focusing on replacing vehicles used in auxiliary rail and water transport services. This covers the replacement of vehicles operational for at least one year in auxiliary rail and port activities with zero-emission vehicles. VAT is excluded.

Beneficiary Requirements

Beneficiaries of this program include rail shunting and port service operators, as well as micro to large enterprises registered in Romania. One option for rail operators is to purchase or replace rolling stock with electric shunting locomotives. Eligible beneficiaries are licensed transport operators with valid national licenses or certificates in road and rail freight transport, as well as the maritime and inland waterway sectors.

Conclusion

The Modernisation Fund supports the modernization of energy systems and the improvement of energy efficiency in 13 lower-income EU Member States. Established in 2018 for the 2021-2030 period, the fund aims to assist member states in meeting climate targets and the European Green Deal objectives.

Company Summary

European Commission: Provides EUR 1.1 billion in financial support from the Modernisation Fund to acquire zero-emission rail vehicles.

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