France

Alstom supporting UIC study on financing sustainability

Rail technology supplier Alstom is supporting a study by the International Union of Railways (UIC) that emphasises the potential of expanding rail infrastructure in low- and middle-income countries to fight climate change. The study is being realised by UIC together with the University of Birmingham and Roland Berger and was presented on the occasion of the United Nations' first World Day for Sustainable Transport on 26th November 2023. The study is intended to serve as a basis for discussion at the United Nations COP28 Climate Change Conference in 2023. The study shows that an expansion of the rail infrastructure by up to 192,000 km could quadruple the market share of rail transport, and thus avoid 1.8 billion t of CO2 emissions by 2050. In addition, this would create formal jobs and bring benefits in terms of increased accessibility and connectivity as well as significantly lower negative external costs compared to other modes of transport. The study’s recommendations include the provision of grants from high-income countries as part of climate finance and the revision of the assessment methods used by international financial institutions to evaluate railway projects. An example of the transformative power of rail infrastructure can be seen in Senegal, where the overall project will reduce up to 340,000 t of CO2 over a 40-year lifespan.