Romania opens €90m fund to buy new zero-emission locomotives

Rail operators in Romania can apply for a total of €90 million to acquire zero-emission locomotives. It is part of a larger €299 million financial scheme to decarbonise rail, road and maritime transport.
The funds will be allocated through successive calls. For now, there is €37.5 million available for rail freight. Each applicant can receive a maximum of €18 million in support to replace a maximum of 10 locomotives with zero-emission units.

Romania only covers the price difference between the zero-emission locomotive and a diesel or electric equivalent which would have been purchased without aid. In other words, the scheme helps rail companies purchase zero-emission locomotives for the price of ‘regular’ diesel or electric locomotives.

The newly acquired zero-emission locomotive should replace an old one, which must have been owned and operated by the company for at least an entire calendar year. If the company does not own the locomotive, it can submit a bilateral promise of sale-purchase. It has to present the new registration certificate signing the financing contract. The old vehicle needs to be scrapped within 60 days, otherwise Romania will recover the aid.

More than €100 million for decarbonised traction

The current call ends on 16 November, with contracts expected to be signed between 12 and 18 May 2027. Its scoring system rewards applications with the lowest required financial support to replace locomotives, as well as replacements for locomotives that predominantly operate on Romanian territory.

Funds that are not allocated as part of the ongoing call will later be offered in another call. Later calls will also make the remaining €52.5 million out of the total of €90 million available for the scheme.

Besides the zero-emission traction support scheme, the European Investment Bank has also confirmed a variety of transport decarbonisation investments in Romania. As part of this effort, the EIB makes €12 million available for recharging infrastructure for battery-powered electric locomotives used, freight terminals and logistics facilities. Rail freight has to share these funds with the aviation industry, as the money can also be spent on aircraft power units.

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