STUDIES ON INNOVATION IN CLIMATE FINANCE FOR RAIL

The EU Horizon Europe program has opened a funding opportunity titled "Studies on Innovation in Climate Finance for Rail." This initiative is part of the HORIZON JU-ER-2025-02 call and seeks to explore innovative financing mechanisms to support the railway sector's transition to sustainable practices, aligning with the European Green Deal's goal of achieving net-zero emissions by 2050.

This research funding opportunity will have a total budget of €600,000 and aims to award up to three grants. The application period opens on October 30, 2025, and closes on February 11, 2026. The expected duration for funded projects is approximately 30 months, with a focus on establishing methodologies and frameworks that promote sustainable railway financing through green bonds and sustainability-linked financing.

Eligible applicants include universities, research institutions, small and medium-sized enterprises (SMEs), large rail industry enterprises, and innovative startups from EU member states and associated countries. Proposals should reflect a mix of expertise to address the key objectives specified in the call. Co-funding is mandated, with Private Members of the EU-Rail consortium expected to contribute in-kind support of at least 1.26352 times the funding request.

The specific aims of the research include the development of standardized methodologies for measuring greenhouse gas emission reductions, guidelines corresponding with the Corporate Sustainability Reporting Directive, and an analysis of existing climate financing criteria. The project encourages reviews of current green finance instruments applicable to rail, examination of carbon credits' potential, and broader exploration of innovative financing structures that can facilitate rail investment.

This call is characterized as competitive, with an estimated success rate ranging from 10% to 39%. Applicants are required to submit a single comprehensive proposal that will undergo evaluation based on excellence, impact, and implementation criteria.

Overall, this funding opportunity represents a crucial step in driving research and innovation within the rail transport sector, enhancing its capacity to access climate finance and contribute toward a more sustainable future.

The EU's Horizon Europe program is offering a grant, HORIZON-JU-ER-2025-EXPLR-02, for research and innovation actions focused on "Studies on Innovation in Climate Finance for Rail". This initiative aims to support the European Green Deal's objective of achieving net-zero emissions by 2050 by exploring new financing sources and mechanisms for sustainable railway development.

The expected outcomes of this Research and Innovation Action include developing new knowledge by identifying key challenges, drivers, and measurable benefits of implementing new concepts of environmental economy. The studies should identify strategies to leverage green bonds and sustainability-linked financing instruments for railway projects, including investigating solutions for increased use of carbon credits by rail companies. They should also research and provide recommendations for standardized methodologies for measuring and verifying greenhouse gas emission reductions from rail investments, considering the EU Taxonomy and clarification of avoided emissions from modal shift. Furthermore, the studies should develop reporting guidelines enabling alignment with Corporate Sustainability Reporting Directives (CSRD) and analyze current climate financing criteria, providing recommendations for bridging gaps and better accommodating rail projects.

The scope of the study includes conducting a comprehensive review of existing green financing instruments and their applicability to the rail sector, analyzing investment criteria and processes, identifying strategies for increased utilization of carbon credits, exploring innovative financing structures that blend public, private, and climate-specific funding sources, providing guidelines for harmonizing processes for monitoring, reporting, and evaluation of gas emissions measurements, and investigating the contribution and opportunities of climate finance instruments in enabling the transition towards rail transport.

The integration of the gender dimension is not a mandatory requirement for this topic.

The proposal page limit is 70 pages, as an exception to the general annexes of the Horizon Europe Work Programme 2023-2025. Admissibility conditions are described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes, and proposal page limits and layout are described in Part B of the Application Form available in the Submission System. Eligible countries are described in Annex B of the Work Programme General Annexes, with specific provisions for non-EU/non-Associated Countries outlined in the Horizon Europe Programme Guide. Other eligible conditions are described in Annex B, and financial and operational capacity and exclusion criteria are in Annex C of the Work Programme General Annexes. Evaluation and award criteria, scoring, and thresholds are detailed in Annex D, with submission and evaluation processes in Annex F of the Work Programme General Annexes and the Online Manual. The indicative timeline for evaluation and grant agreement is also described in Annex F.

The starting date of grants may be as of the submission date, with applicants needing to justify the need for a retroactive starting date. Eligible costs will take the form of a lump sum, as defined in the Decision of 7 July 2021. Annex G of the Work Programme General Annexes provides additional details.

The total indicative budget for this topic is 0.6 million EUR. Applicant Private Members of the EU-Rail part of consortia should provide in-kind contributions to additional activities, with the total in-kind contributions being no less than 1.26352 times the funding request. The indicative project duration is 30 months.

Applicants should ensure their proposals and consortium reflect aggregated expertise to perform the activities and achieve the objectives. They are expected to gather expertise from academia, the rail supply industry, SMEs, and start-ups, and leverage expectations of end-users in the horizon 2030, considering the EU-Rail Master Plan and Multi-Annual Work Plan.

Application forms and evaluation form templates are available in the Submission System. Guidance is provided in the HE Programme Guide, Lump Sum MGA, call-specific instructions, and the guidance document "Lump sums what do I need to know?". Additional documents include the HE Main Work Programme 2023–2025, HE Framework Programme 2021/695, EU Financial Regulation 2024/2509, and the Funding & Tenders Portal Online Manual.

The EU-RAIL JU Call Helpdesk can be contacted at info-call@rail-research.europa.eu, with a deadline for queries of Wednesday 28 January 2026 at 17:00 (Brussels Local Time).

In summary, this opportunity is a Research and Innovation Action grant under the Horizon Europe program, specifically targeting the development of new knowledge and actionable recommendations to facilitate the access of railways to climate finance. It aims to support the transition of railways to low-carbon, climate-resilient transport systems, aligning with the European Green Deal's objectives. The grant encourages studies on leveraging green bonds, carbon credits, standardized methodologies for emission reduction, CSRD reporting guidelines, and analysis of climate financing criteria. The project duration is approximately 30 months, with a total budget of 0.6 million EUR. The call is open to consortia with expertise from academia, rail industry, SMEs and start-ups.

Eligible Applicant Types: The eligible applicant types include academia, rail supply industry, SMEs, and start-ups. Private Members of the EU-Rail part of consortia are specifically mentioned with requirements for in-kind contributions. The call is open to both EU and non-EU/non-associated countries, with specific provisions for funding participants from non-EU/non-associated countries.

Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Lump Sum Grant. The call includes Research and Innovation Actions (RIA), Innovation Actions (IA) and Coordination and Support Actions (CSA).

Consortium Requirement: The opportunity requires a consortium of multiple applicants. Applicants shall ensure that their proposals and consortium reflect the aggregated expertise to perform the activities and achieve the objectives set by the topic.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU member states and non-EU/non-Associated Countries. A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects.

Target Sector: The target sector is transport, specifically focusing on the railway industry. It also targets climate, environment, and finance, with an emphasis on sustainable financing mechanisms.

Mentioned Countries: The opportunity is open to EU member states and non-EU/non-Associated Countries.

Project Stage: The project stage targets research, innovation, and development, with a focus on actionable recommendations and implementation of decarbonization strategies. The maturity of projects ranges from research and innovation actions to innovation actions.

Funding Amount: The funding range varies depending on the specific topic, ranging from EUR 600,000 to EUR 33,100,000. For example, HORIZON-JU-ER-2025-EXPLR-02 has a budget of EUR 600,000, while HORIZON-JU-ER-2025-FA2-01 has a budget of EUR 33,100,000.

Application Type: The application type is an open call with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of a lump sum grant. Private members of EU-Rail are also expected to provide in-kind contributions.

Application Stages: The application process involves a single stage.

Success Rates: The indicative number of grants varies per topic, ranging from 1 to 3. For example, HORIZON-JU-ER-2025-EXPLR-02 aims to award 3 grants, while HORIZON-JU-ER-2025-FA2-01 aims to award 1 grant.

Co-funding Requirement: Co-funding is required in the form of in-kind contributions from applicant Private Members of the EU-Rail part of consortia. The amount of total in-kind contributions should be no less than 1.26352 times the funding request, in aggregate, of these applicant Private Members.

Summary: This Horizon Europe call, under the EU-Rail Joint Undertaking, aims to drive innovation in climate finance for the railway sector to support the European Green Deal's net-zero emissions target by 2050. It seeks to unlock new financing sources and mechanisms for sustainable railway development. The call encompasses various Research and Innovation Actions (RIA), Innovation Actions (IA), and Coordination and Support Actions (CSA), targeting academia, rail industry, SMEs, and start-ups. Projects should focus on strategies to leverage green bonds, carbon credits, and other sustainable financing instruments, develop standardized methodologies for measuring emission reductions, and provide actionable recommendations for the rail industry to access climate finance. The total indicative budget varies per topic, with a single-stage application process and co-funding required in the form of in-kind contributions from private members of EU-Rail consortia. The call is open to EU and non-EU/non-associated countries, promoting a transition to low-carbon, climate-resilient transport systems.