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NETHERLANDS: The European Commission has approved under EU State aid rules a €41m Dutch scheme to promote the shift of freight from road to rail by providing direct grants for the installation of upgraded versions of ETCS onboard equipment.

The scheme will run from January 1 2025 to October 1 2029. For vehicles for which ETCS has already been developed a maximum of €200 000 per ETCS installation can be granted. For vehicles requiring development activities, a maximum of €2m per ETCS installation can be granted.

On December 18 the Commission said the scheme is necessary to promote the use of rail transport, which is less polluting than road transport and contributes to reducing road congestion. This is in line with the objectives of the EU Sustainable & Smart Mobility Strategy and of the European Green Deal.

Furthermore, the aid will have an ‘incentive effect’ as the beneficiaries would not carry out the investment to the same extent in the absence of the public support.

The scheme was also found to be proportionate, limited to the minimum necessary and to have a limited impact on competition and trade between Member States.