EU Rail Lessors Study Zero-Emission with Infrabel

All Aboard the Green Express: How Europe’s Rail Lessors Are Steering Toward Net-Zero
The European rail sector is chugging full steam ahead into a greener future, and the Association of European Rail Rolling Stock Lessors (AERRL) is at the helm. On 13 May 2025, AERRL announced its deepened collaboration with Infrabel, kicking off the second phase of a landmark study aimed at decarbonizing Europe’s rail fleet. This partnership isn’t just about swapping diesel for batteries—it’s a full-throttle effort to align rail transport with the European Green Deal’s ambitious climate targets. With railways already among the most sustainable transport options, the focus now shifts to achieving net-zero emissions by 2050. But as any seasoned rail operator knows, this journey is anything but a straight track.

The Diesel Dilemma and the Push for Cleaner Tech

Globally, rail’s energy mix is split nearly 50-50 between diesel and electricity, with diesel still holding a slight edge. That’s a problem when the destination is net-zero. AERRL’s study, backed by heavyweight leasing companies and European banks, zeroes in on slashing emissions from diesel fleets. The solutions? Hydrogen-powered trains, battery-electric hybrids, and even biofuels. For instance, Germany’s *Coradia iLint*, the world’s first hydrogen train, has already proven the tech’s viability on regional routes. Meanwhile, France’s SNCF is betting big on battery-electric hybrids to phase out diesel on non-electrified lines.
But innovation isn’t just about shiny new toys. Retrofitting existing diesel fleets with cleaner tech could be a game-changer, especially for Eastern European countries where electrification lags. The study’s first phase mapped these pathways; now, Phase II must tackle the nitty-gritty: cost curves, infrastructure gaps, and the regulatory fine print.

ETCS and ERTMS: The Billion-Euro Speed Bump

No green transition comes without headaches, and for rail lessors, the European Train Control System (ETCS) and European Rail Traffic Management System (ERTMS) are the equivalent of a signal stuck on red. These systems are critical for creating a seamless, interoperable rail network—think of them as the GPS and traffic lights of Europe’s railways. But lessors gripe that the rollout is “costly and unstable,” with annual investments hitting €800 million and set to rise to €1 billion by 2027.
The core issue? Fragmented implementation. Different countries are adopting different versions of ETCS, creating a patchwork that’s as confusing as a spaghetti junction. AERRL is pushing for a unified approach, like standardizing on the BL3.4 release, to avoid market chaos. After all, what good is a net-zero fleet if trains can’t cross borders smoothly?

Green Rails, Green Gains: The Business Case for Sustainability

Decarbonization isn’t just about saving the planet—it’s also about saving (and making) money. Infrabel’s recent adoption of “green rails,” which cut CO2 emissions by 70% during manufacturing, shows how sustainability can drive efficiency. These rails, made using recycled steel and low-carbon processes, are a blueprint for the sector’s circular economy ambitions.
The financial incentives are stacking up too. The EU’s Sustainable and Smart Mobility Strategy is funneling billions into green rail projects, while private investors are increasingly eyeing rail as a low-risk, high-impact ESG play. For lessors, this means a golden opportunity to lease out cutting-edge, eco-friendly rolling stock—provided the regulatory winds stay favorable.

Collaboration or Gridlock? The Industry’s Make-or-Break Moment

AERRL isn’t going it alone. Its membership in the International Union of Railways (UIC) and active role in forums like RailTech Europe underscore the need for industry-wide teamwork. The association’s *Manifesto 2024-2029* lays out a clear plea: harmonize standards, streamline procurement, and avoid disruptive policy shifts.
Case in point: Spain’s recent success with solar-powered trains or Sweden’s experiments with wind-powered rail lines prove that collaboration sparks innovation. But without coordinated action, Europe risks a patchwork of incompatible systems that could derail progress.
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Full Steam Ahead—With a Few Caveats
The AERRL-Infrabel partnership is a bold step toward net-zero rail, but the track ahead is littered with challenges. From taming the ETCS beast to scaling hydrogen tech, the sector must balance innovation with pragmatism. One thing’s certain: the era of diesel-dominated railways is ending, and the winners will be those who invest wisely—and collaboratively—in the green transition. As the EU’s climate clock ticks, rail’s role as the backbone of sustainable mobility has never been clearer. All aboard? You bet. But mind the gap between ambition and execution.