FEATURE LEGAL |
Green financing and green technology in rail The Great British rail industry is on the verge of a technological revolution. In this article Kulraj Badhesha and Tammy Samuel explore some of the targets that have sparked the upheaval, the green technologies being proposed to instigate the change and potential green financing options which could be used to fund the transformation
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he Paris Climate Agreement introduced in 2015 was the first universal, legally binding global climate change agreement. The UK ratified the Paris Agreement in 2016, agreeing to its aim to reduce gas emissions by at least 40 per cent by 2030, compared to 1990 emissions levels. Based on CO₂ emissions rates, rail is one of the greenest modes of transport available. It contributes less than 2.5 per cent of total transport emissions in the UK and about 0.6 per cent of the UK’s total emissions. The rail industry will therefore be instrumental in delivering the climate change objectives set out in the Paris Climate Agreement. But the rail industry cannot simply rest on its laurels. This is particularly the case given the significance of the climate change challenge and the pace of technological change. Major changes, on an industry-wide basis, are still needed. Trains in the UK still rely predominantly on diesel traction for their power, and railway traction accounts for the greatest proportion of emissions within rail. An estimated 62 per cent of the rail network is currently diesel-powered.
In June 2019, the UK Government legislated to end its contribution to climate change by 2050: a target which requires the UK to become entirely carbon neutral less than thirty years from now. The Department for Transport has further challenged the rail industry to remove all diesel-only trains from the network by 2040. Transport Scotland has further thrown down the gauntlet, setting a more ambitious challenge to decarbonise domestic passenger rail services in Scotland by 2035. How will the rail industry achieve these ambitious targets? The Rail Industry Decarbonisation Taskforce reported that an estimated 3,000-3,300 diesel passenger vehicles will need to be replaced, re-engined or converted to achieve a carbon neutral railway. The industry is already moving to modify existing rolling stock in order to reduce emissions. ROSCOs in particular are taking a proactive approach, not least to preserve the value of their rolling stock. We explored some of the specific examples of new technological solutions being put into action by the industry in more depth
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Kulraj Badhesha
Tammy Samuel
in a previous article, in last month’s issue of Rail Professional. Broadly speaking, the focus of the ROSCOs to date has been in modifying existing diesel fleets through retrofitting battery packs. There have also been examples of the use of hydrogen fuel cell technology in the industry. These new technologies provide huge potential for cleaner alternatives to diesel. The industry has already begun to invest in change. However, much of the technology is still in its relative infancy. For example, longer distance journeys on battery powered trains are not yet feasible. Hydrogen infrastructure is not widely available at depots and stations. Investment so far has therefore been piecemeal rather than widespread. It is also not clear that modification of existing fleets alone will be sufficient in achieving the challenging targets faced by the industry. Electric powered trains are currently the only alternative to diesel that can run freight or passenger services with zero carbon emissions. But, with only roughly 38 per cent of all railway infrastructure in the UK currently electrified, further work (and investment) is needed in this area too. Rail Professional
