EU ETS revenues should be reinvested into rail infrastructure, according to eight European rail organisations. In a joint statement, they urged the European Commission to direct part of the carbon market’s income towards freight corridors, intermodal terminals and rail infrastructure. The call comes ahead of the European Commission’s planned revision of the European Union Emissions Trading System (EU ETS), expected on 17 July. The proposal aims to align the carbon market with the EU’s 2040 climate targets while strengthening Europe’s competitiveness. Rail groups seek EU ETS revenues The organisations said the EU ETS should do more than place a price on carbon emissions. They want EU ETS revenues to support investments that strengthen passenger and freight rail across Europe. Rail already delivers strong environmental benefits, the organisations noted. More than 80% of rail traffic in the European Union runs on electrified lines. Meanwhile, rail accounts for less than 1% of transport-related greenhouse gas emissions. Despite that performance, electrified rail still faces indirect EU ETS costs through higher electricity prices. The organisations estimate those costs at around €571 million per year across the EU27, based on a carbon price of €79.36 per tonne of CO₂ . They also warned that costs could rise further. If the carbon price reaches €110 per tonne in 2027, annual indirect costs could exceed €790 million . Rather than asking for exemptions, the organisations want the European Commission to reinvest EU ETS revenues into projects that improve rail infrastructure and services. How EU ETS revenues could support freight rail The organisations identified several investment priorities. These include freight corridors, intermodal terminals, terminal and depot electrification, traction power supply, rolling stock modernisation and digital capacity tools. They believe these investments would remove infrastructure bottlenecks. They also say they wo