Development of a methodology to assess the 'green' impacts of investment in the rail sector
Final report - Study
The study presents an overview of classification systems (taxonomies) which define environmentally sustainable activities within the transport sector both globally and in the EU. It maps activities to various types of rail investments in relation to the EU NACE system that collects statistical data on manufacturing, construction, passenger and freight rail transport. The study differentiates between new infrastructure construction and renewal/upgrade of assets and operations. It proposes metrics and thresholds to calculate CO₂ emissions and suggests a methodology to assess the green impacts of... rail sector investments. The methodology focuses on climate mitigation and discusses the technical screening criteria for climate adaptation, pollution prevention and control, circular economy, waste prevention and recycling, biodiversity and land, water and marine resources, and additionality. The study also includes an assessment of the monitoring costs related to the financing of green investments. It discusses the potential risks of greenwashing, the possible countermeasures that could lead to the avoidance of greenwashing and provides an estimate on the costs of monitoring, in the context of a harmonised impact reporting. It also analyses the green bond market and its state of play. Finally, it analyses four different scenarios for establishing technical screening criteria. These are assessed with respect to the potential impacts of those technical screening criteria on the attractiveness of rail investments, the associated costs of monitoring, the benefits, volume and/or direction of the market, the pricing of green bonds when compared to conventional bonds, the climate change mitigation and adaptation contribution, and other environmental considerations.