Commission releases 120 million euros for Spanish modal shift

European Commission flags

Another state aid scheme by the EU Commission now targets Spain. 120 million euros will be made available to the Spanish government through the Recovery and Resilience Facility (RRF), targeting the greening of rail freight transport and incentivising the shift from road to rail.

“The €120 million scheme approved today will improve the competitiveness and greening of rail freight transport in Spain. It will also support the shift from road to rail, in line with the objectives of the European Green Deal, while limiting possible distortions of competition”, said the Commission’s executive vice-president Margrethe Vestager.

Compensation for using rail

Approved on 21 March 2022, the Commission’s support scheme for Spain will last until 30 June 2026. “The support will take the form of direct grants to compensate freight companies for the cost difference between road and rail transport based on the actual volumes of freight shifted from road to rail transport”, explained the Commission.

“The aid amount is also calculated based on the environmental performance of the rail companies, which incentivises performance improvements”, it added. It is important to note that financing through the support scheme is available for all freight companies “established in the European Union and possessing all the necessary licences, such as the single safety certificate”. At the same time, the “maximum amount of aid per beneficiary depends on the modal shift achieved”.

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Author: Nikos Papatolios

Nikos Papatolios is editor of, the online magazine for rail freight professionals.

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