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EC Approves €1.1Billion German State Aid To support Electric Rail Transport

By  |  February 26, 2023

The European Commission has approved, under EU State aid rules, a €1.1 billion German scheme to compensate rail transport operators using electric traction in the context of the recent spike in electricity prices. 

The measure will contribute to ensuring that the rail sector remains competitive while preserving the environmental performance of electric rail, in line with the objectives of the Commission’s Sustainable and Smart Mobility Strategy and of the European Green Deal.

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Germany notified the Commission of its intention to introduce a €1.1 billion scheme to support freight and passenger rail transport operators using electric traction. 

The aim of the scheme is to help rail operators cover part of the additional electricity cost experienced due to the exceptional increases in electricity prices in the context of Russia’s war against Ukraine.

In doing so, the scheme aims to support and preserve the modal shift from road to rail transport using electric traction, thus promoting a greener means of transport.