Accelerate EU Rail Development to Mitigate Climate Change

by Akinari Sato (Japan)

Abstract

The transport sector currently accounts for about a quarter of carbon emissions in the EU. In that sector, particularly for intra- and inter-urban transport, railways have high energy efficiency as well as low carbon emissions. However, rail is currently responsible for only around 8% of all transport in the EU. To accelerate climate change action, there is a need to accelerate the 'modal shift' from other modes of transport such as cars and planes to the railways. High-speed rail can play an important role in this modal shift. The EU must resolve several issues to realize that potential. Solutions are feasible.

Starting Point

Today, global climate change threatens not only the natural environment, but also society and the economy. According to the climate clock, we only have seven years and two months (as of May 2022) to limit climate change. The counter measures are our responsibility. Urgent sustainable actions are essential to protect human life, biodiversity, and our physical environment. Greenhouse gas (GHG) emissions are one of the major contributors to climate change. The EU strives to turn the corner in GHG emissions with its EU Green Deal and Fit for 55. The transportation sector accounts for 27% of all GHG emissions in the EU, or about a quarter of the total. In order of size, road transport, air transport, maritime transport, and railroads account for the largest portion of emissions(71.1%, 14.1, 13,4, and 0,4% respectively) and long-distance travel of passengers in Western Europe in 2015 accounted for about 50% of total GHG emissions. Transportation sector policy can significantly reduceGHG emissions. Railroads can be a game changer, especially in long-distance travel.

Environmental Performance of Railways

Why should railroads be used as a means to combat climate change? There are two main reasons. One is the overwhelmingly low GHG emissions. The emissions from rail are 5-7 times lower than that of cars. Compared to airplanes, it is 10-15 times lower. In addition to low emissions, the energy efficiency is also higher than other modes of transport.

Recognition of this is growing in the EU, where 2021 was declared the "European Year of the Railways." The EU Commission indicated that rail transport is an effective way to combat climate change. However, the use of railroads as a means of long-distance passenger travel is not currently dominant. According to McKinsey analysis, the modal share of passenger transport in the EU between 2010 and 2019 accounted for by rail was around 7-8% and did not change much over the period. On the other hand, the car, the least environmentally and energy efficient mode of transport, accounts for more than 80% of the total, and airplanes, at a small percentage, exceed the modal share of rail by about 0.4%. Considering that rail accounted for only a small share of GHG emissions, while these modal share figures show the superior environmental performance of rail, the low utilization rate is not balanced with its potential and its utilization rate. They also indicate that there is no upward trend at this rate.

Modal Shift to Rail

Railway’s potential to combat climate change is largely unutilized. The facts so far indicate that this is where the EU should focus its efforts. The EU's focus should be on making a change, encouraging people to move away from other modes of transportation, such as cars and airplanes, and toward rail, in other words, a "modal shift" to rail.

A modal shift requires a policy that will bring about some major changes. How can a modal shift to railroads be achieved? In terms of long-distance transportation, a modal shift means making rail more attractive than the competitive modes of transportation such as airplanes and automobiles. According to the study by CE Delft that examined which attractions contribute to rail ridership, the following three were positively correlated with increased modal shift: shorter ride times, lower prices, and greater variety of available destinations. This is consistent with the current lack of progress in rail use. Although the time and price of the ride depends on the distance, airplanes have a particular advantage. In addition, rail is inferior to road and air in terms of available destinations. A possible policy for long-distance passenger transportation that takes these three factors into account is to expand the use of high-speed rail.

High-Speed Rail (HSR)

High-speed rail, as the name implies, is an electrically powered vehicle capable of traveling at high speeds, typically 200 km/h or more. Naturally, HSR has a significant impact on travel time. From an environmental standpoint, it also outperforms conventional railroads: a study by the International Union of Railways found that in France and China, the carbon footprint of HSR is 14 times smaller than that of cars and 15 times smaller than that of airplanes. The streamlined shape of HSR not only increases the average speed by reducing air resistance, but also increases the energy efficiency compared to conventional rail. In addition to the environmental benefits, connecting cities at high speeds could also have significant economic benefits.

Among the factors correlated with modal share mentioned above, shorter travel times and connectivity in the best case scenario would contribute significantly to a modal shift of passengers to rail for long-distance travel. Several EU member states already have a particularly high use of HSR for domestic travel, with positive results.A study by Università degli Studi di Napoli of Italian HSRs shows that between 2008 and 2018, the introduction of HSR reduced travel times by 1-2.5 hours, with a corresponding improvement in accessibility of about 30%. In addition, competition among companies has led to a significant drop in ticket prices. As a result, travel demand is estimated to have increased by 200%, and it turns out that this has also led to a 5.6% increase in per capita GDP in the areas around the HSR railways over a 10-year period. This figure is estimated to have contributed to a 2.6% increase for the nation. A study by the Statista research department, which examined the modal share of high-speed rail in various countries around the world, found that high-speed rail accounts for two-thirds of the modal share between Paris-Lyon in France and Tokyo-Osaka in Japan. In other regions a modal shift has been observed, with more than half of all travelers choosing high-speed rail for distances of up to 1,000 km. HSR is already generating positive environmental, economic, and social impacts in domestic operations in various countries. It could accelerate the modal shift to rail over medium to long distance.

Obstacles

As mentioned above, HSR promises environmental and economic benefits to connected cities. However, the current path to HSR in the EU is not without its problems. These must be addressed now.

One of them is the issue of European railroad integration. HSR can be used most efficiently for travel distances up to 1000 km. Therefore, an essential prerequisite for its network is a seamless rail network that can cross borders without any obstacles, not only within member states. A seamless rail network is also essential for the variety of destinations. A seamless rail network is not yet fully prepared in the EU. The elements cited as necessary for such a seamless rail network are a unified electrification system, signaling system, and operating system. However, for a long time, each country in the EU has had its own railroad policy, and there have been different systems in different areas of the international network.

In response to this, the EU has launched “Sustainable and Smart Mobility Strategy” and “TEN-T” regulations, which are aimed at improving this low level of connectivity, and it is still working hard to build around eight core rail network projects across its member states. In reality, construction delays of about 11 years on average have been identified for five of the eight core routes, and furthermore, the budget has been requested to be increased by about 47% over the initial budget.

Solutions

The first solution is to strengthen the EU Commission's authority over rail projects. In TEN-T, the EU Commission does not have the authority to decide on the construction plan, but each member state is given the discretion to do so. Therefore, construction is planned and executed not at the EU level, but at the national level for the sake of national interests. Due to the lack of cooperation among member states, efficient network planning and the efficient distribution of funds are not possible. In order to achieve these goals, it is desirable to strengthen the authority of the EU Commission so that plans can be made and implemented with the interests of the EU in mind.

Another solution is the use of revenues from EU environmental taxes. Currently, most of the TEN-T is largely subsidized by the EU's Connecting Europe Facility, but there is a budget shortfall, and no significant increase in the budget is planned. Eliminating the budget shortfall with revenues from environmental taxes, such as the EU ETS and energy taxes, is recommended. Most environmental tax revenues were originally specified to be used for sustainable development. It makes sense to invest in high speed rail, which has excellent environmental performance.

Next Steps

The potential of high-speed rail to be a game changer in the fight against looming climate change is strong. High-speed rail will cause a modal shift in transportation and have a positive environmental and economic impact. However, the infrastructure is still lacking. The Crisis cannot be solved simply by relying on technology. Cooperation among member states at the EU level, rather than at the national level, is essential if high-speed rail is to contribute to climate change more quickly.

Works Cited


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