UNIFE has published a funding plan for the EU high-speed rail network, proposing the use of private capital to support the development of high-speed railway projects across the Member States.
As part of its Sustainable and Smart Mobility Strategy, Brussels has set ambitious targets, including doubling high-speed rail traffic by the end of this decade compared with 2015 levels, and tripling it by 2050. To achieve these objectives, the new TEN-T Regulation adopted in 2024 outlines the development priorities for Europe’s railway infrastructure. The focus is on creating fast connections between the continent’s major cities, with operating speeds exceeding 200 km/h, while also integrating these lines into the existing railway network.
The European plan aims to develop a unified and interconnected network built around the core TEN-T corridors and expanded passenger rail infrastructure. The implementation of this network will take place in stages, with the main connections expected to be completed by 2040.
Although the European Union has committed to a rapid expansion of high-speed rail transport, current progress shows that the targets remain far from being achieved. In 2023, high-speed rail traffic was only 17% higher than in 2015, despite the European strategy calling for it to double by 2030 and triple by 2050.
The EU high-speed rail network currently in operation totalled 12,128 km in 2023, according to EU Transport in Figures 2025 statistics. However, the infrastructure remains concentrated mainly in Western Europe. Spain, France, Italy and Germany account for the majority of these lines, while Central and Eastern European countries still have limited or non-existent connections to the European high-speed network.
The European Commission is encouraging Member States to consider going beyond the minimum standards set out in the TEN-T network and to examine the development of new high-speed railway lines, including for train operations above 250 km/h, where economic conditions justify such investments.
Delivering the EU high-speed rail network in line with current TEN-T plans, with a 2040 target, will require investments of EUR 345 billion. Beyond TEN-T, tripling the high-speed system, with lines capable of supporting speeds of 250 km/h would require investments of EUR 546 billion, according to a report prepared by EY, Bocconi University and Blue Arches for Europe’s Rail Joint Undertaking (EU-Rail).
Investments in high-speed railway infrastructure are expected to generate hundreds of thousands of jobs and deliver major economic and social benefits, with a net positive impact estimated at around EUR 750 billion.
The European Commission is set to complement the high-speed rail network plan, due to be published later this year, with a dedicated EU-level financing strategy. The objective is to improve coordination between public and private funding sources and strengthen investment mechanisms for high-speed rail projects, enabling the expanded TEN-T network to be completed by 2040.
The UNIFE plan
Through the publication of this plan, UNIFE has outlined its position on a number of elements that should be included in the future financing strategy of the High-Speed Rail Deal.
UNIFE proposes several key directions for the future financing strategy of the European high-speed rail network, placing particular emphasis on combining public funding with private investment and improving the efficiency of project implementation.
First, European funding is regarded as essential, not only as a direct source of financing but also as a tool for attracting private capital. In this respect, the association recommends a more coherent use of EU programmes and greater use of ETS revenues – funds generated through the European emissions trading system – to support the transition towards sustainable rail transport.
The untapped potential of ETS revenues
The association proposes a number of measures for the future financing strategy of high-speed rail, focusing on the central role of public funding and the more efficient use of European resources, including ETS revenues, to support infrastructure development.
UNIFE highlights the still underutilised potential of ETS revenues (EU Emissions Trading System), which could become a major source of public funding, both at EU level and within Member States, for the development of the high-speed rail network.
At present, these resources are used only marginally for railway financing, both at central level, including through the Innovation Fund – the EU programme supporting low-carbon technologies – and at national level. The situation is considered paradoxical, given that the railway sector indirectly contributes to greenhouse gas emission costs through electricity production, while at the same time being the most environmentally friendly mode of mass transport and not a priority recipient of these funds.
Changing this approach would make it possible to mobilise significant public resources for investment in high-speed rail infrastructure while simultaneously creating a more attractive framework for private investors.
The plan for private infrastructure financing
Currently, opportunities for private financing of high-speed rail infrastructure remain limited due to several structural factors. Initial costs are extremely high, ranging from approximately EUR 20 million to EUR 70 million per kilometre depending on terrain and urban density, while the investment payback period is exceptionally long, between 15 and 30 years. As a result, substantial public funding remains necessary.
UNIFE proposes a series of measures aimed at stimulating private financing in high-speed rail infrastructure, based on stability, predictability and the attraction of institutional investors.
First, there is a need to create an attractive investment environment supported by clear and transparent long-term strategies. This includes publishing a coherent pipeline of future projects in order to provide investors with visibility and planning capacity, as well as firm political and financial commitments from the EU in support of rail transport. Legislative stability is considered equally important, as it reduces uncertainty and increases investor confidence in the continuity of public policies.
UNIFE also highlights the importance of drawing on the experience of successful existing projects and making use of “sale and leaseback” models, whereby infrastructure is initially publicly financed before being transferred to private investors and leased back. Although this mechanism may free up public capital for new investments, it must be carefully assessed, as it can generate significant long-term costs.
Other measures include tax incentives for infrastructure investment and promoting railway projects as green investments attractive to ESG-oriented funds.
Finally, UNIFE underlines the role of institutional investors, such as pension funds and sovereign wealth funds, which seek stable long-term returns, as well as the importance of issuing infrastructure bonds backed by future revenues such as ticket sales or freight transport income in order to attract private capital.
The role of private investment in high-speed rolling stock
For high-speed rolling stock, UNIFE recommends simplifying design and certification processes so that new trains can enter service more quickly, reducing risks and barriers for new operators.
UNIFE notes that while private financing is already widely used for freight locomotives in the European Union, particularly through leasing companies, there is also potential to expand this model into the high-speed passenger train segment.
To encourage new operators to enter this market, it is essential to reduce risks and uncertainties and shorten the time required to launch new commercial services through a clearer and more stable regulatory framework. This is particularly important given that the high-speed rolling stock market is significantly more complex than the freight sector.
In this context, UNIFE considers private investment more suitable for financing rolling stock and other associated capital costs, as the revenues generated by high-speed services – mainly from ticket sales, commercial services and advertising – can support the repayment of a limited level of debt while covering operating and maintenance costs, thereby complementing the funding required for the development of this segment.
The European high-speed rolling stock market is still at an early stage of development. Fundamentally, this is because established operators continue to operate almost exclusively within their domestic markets, without significant expansion into new international routes or external markets.
Although several operators have expressed interest in investing in this segment, the number of new entrants in the high-speed rail market remains limited, restricting competition and slowing the pace of development across the sector.
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