Fermerci, one of the largest rail freight associations in Italy, asked that the funds from the Emission Trading System (ETS) carbon credit be largely used to boost the modal shift from road to rail. More specifically, Fermerci’s general manager Giuseppe Rizzi, asked that the money should be used to finance the Norma Merci and Ferrobonus measures, the two main incentives for rail freight operators in Italy.
These two initiatives “are instrumental in promoting this transition to rail freight transport”, Rizzi explained. Data from Fermerci, for example, showed that incentives for rail freight, despite being significantly lower than the ones for road transport, help the sector grow and survive in times of crisis. Consequently, Rizzi asked the Transport Commission of the Italian Chamber to assign a large part of these funds to the Ministry of Transport to finance the Norma Merci and Ferrobonus initiative.
How does the ETS carbon credit work?
The money gathered through the ETS carbon credit comes from companies, not only in the transport sector, that have a significant environmental impact. These funds are then distributed among EU member states and are then assigned to various ministries to fund different projects. Assigning a large portion of these funds to the rail freight industry, Rizzi argued, would help the sector boost its performance after a setback registered in 2023.
Moreover, due to a large number of necessary infrastructure projects, 60 per cent of rail capacity in Italy will be unavailable throughout 2024 and up to 2026. Because of this, Rizzi stated that increasing subsidies to help the sector is essential, especially considering the lower environmental impact and energy consumption of rail freight compared to other modes of transport. It now remains to be seen whether or not Fermerci’s proposal will be accepted by Italian institutions.