Brussels, July 2, 2024 (Lusa) - The European Commission on Tuesday gave the 'green light' to Portuguese state aid grants worth €45 million until 2029, to encourage the transfer of freight from road to rail, with a view to a less polluting system of transport.

In a statement released today, the EU executive said it had "approved, under EU state aid rules, a Portuguese aid scheme worth €45 million to encourage the transfer of freight transport from road to rail".

"The aim of the scheme is to promote the modal shift of freight transport to rail, which is a greener mode of transport, and is in line with the objectives of the Commission's Sustainable and Intelligent Mobility Strategy and the European Green Deal," says the institution.

The European Commission argues that "the scheme is necessary and appropriate to promote the use of rail transport, which is less polluting than road transport", creates incentives "in offering lower prices" and is also "proportionate since it is limited to the minimum necessary and has a limited impact on competition and trade between member states".

According to the information given by Lisbon to Brussels, which has now been released, this involves direct subsidies for an annual programme of up to €9 million, out of a total budget of €45 million over the five-year period until 2029.

The scheme is open to railway companies authorised by the Mobility and Transport Authority to provide rail freight services on the existing public railway infrastructure in Portugal.

"The level of support reflects the external costs - i.e. environmental costs, such as CO2 [carbon dioxide] emissions and air pollution - as well as the socio-economic costs - such as congestion, accidents and noise pollution - that rail transport avoids compared to road freight transport," points out the European Commission.

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