Accelerating rail electrification and freight decarbonisation

635.  While rail is already one of the greenest modes of transport (contributing just 1.4% of domestic transport emissions),452 a significant share of UK rail lines are not yet electrified. According to a Transport Committee report from 2021, only 38% of the UK rail network in 2019 was electrified, with 9,855 km still powered by diesel.453 This compares to an electrification rate of 61% in countries like Germany.454 Combined with a modal shift from road to rail, further electrifying the railways can make a significant positive impact in decarbonising the transport sector. The Review heard from industry that every tonne of freight transported by rail produces 76% less carbon than the equivalent by road,455 with nine times more tonne kilometresxxv of goods being transported domestically by road than rail.456

636.  Rail Partners, the trade association representing passenger rail and freight operating companies, told the Review that:

"Delivering a decarbonised railway will produce around 6,000 jobs many of which will be high-skilled and outside of London and the South East, it will also deliver cleaner air and generate around £2.2 billion in economic benefits." - Rail Partners457

637.  In its Plan for Rail, the Government made a strong case for acceleration of rail electrification, setting out that:

"Electrification does not merely decarbonise existing rail journeys: it has a clear record of attracting new passengers and freight customers to rail, the so-called 'sparks effect', thereby decarbonising journeys that would otherwise have been by road." 458

638.  While industry welcomed government's ambition, this Review heard that further long-term clarity on what the future rail network will look like, both interim and long-term timescales and an investment framework is necessary. A continuous programme for the electrification of rail lines will provide economies of scale for decarbonisation. Stakeholders referred to the example of Germany where due to a continuous programme electrifying about 125 miles each year, electrification costs are significantly lower than in the UK.459

"We need a long-term approach to electrification, delivered by Great British Railways, including a programme of works and an outline of how the private and public sectors will work together to deliver government's ambitions for rail reform. This would allow us to develop a long term fleet strategy across our operations, ensuring the best mix of electric, battery, hydrogen, bi and tri mode trains to decarbonise the rail network, with rolling stock matched to the track infrastructure available." - First460

639.  Participants at the roundtables were clear that government should consider how to leverage private investments in rail decarbonisation, including electrification of railway lines. To ensure that rail is decarbonised in the most cost-effective way, the Review also takes the view that government and industry should explore different technological solutions such as hybrid locomotives running on electricity and hydrogen. Some stakeholders also highlighted the need to bring forward the planned industry reform and include incentives to rail operators to increase demand or make low carbon investments as well as a rail freight target.

640.  In terms of decarbonisation of the wider freight sector - as well as heavier vehicles including buses and coaches - respondents to the review highlighted multiple challenges given that zero emission vehicles and vessels are not yet available for all uses and the range of these vehicles is still more limited. Decarbonisation therefore requires a mix of different technologies and solutions as well as coordination across different technologies and transport modes. Logistics UK also highlighted that "uncertainty around the right technology to invest in remains a barrier for members operating road vehicles".461

641.  Other challenges include limited fuelling options, lack of fuelling infrastructure for commercial use or additional costs related to vehicles and low carbon fuels. This Review heard that the low cost margins which most operators are dealing with make low carbon investments particularly difficult in this sector. Respondents highlighted the value of existing trials, and the need to expand the Electric Vehicle Infrastructure Plan to heavier vehicles. Government published in 2022 a Future of Freight Plan, setting out challenges and a set of priorities and actions agreed with the industry. Stakeholders confirmed their commitment to working with government and other stakeholders to achieve progress. The Review heard for example from First, a rail and bus operator, that:

"By working in collaboration, we can reduce the cost of operating, fuelling and maintaining our fleets, deliver economies of scale, and explore the opportunities for industry." - First462

642.  The Review therefore recommends that the Government should continue to work with industry to set out a clear programme to accelerate decarbonisation of the wider freight sector, building on the Future of Freight Plan.

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xxv  A tonne-kilometre is a measurement of the transport of one tonne of goods over a distance of one kilometre