On track: How railways drive the energy transition
Rail transport is a leading player in the global clean energy transition, offering compelling environmental advantages that position it as a cornerstone of sustainable mobility. Its inherently low energy and CO2 intensities could help railway companies to advance their sustainability agendas and address more than decarbonization.
Web Story
8min
2025-07-08
01
Rail transport plays a central role in decarbonization, emitting significantly less CO2 than road and air alternatives, making it a key enabler of net zero goals.02
Emerging trends like electrification, digital transformation, and automation are reshaping the rail industry and positioning it for sustainable growth.03
ABB innovations including energy-efficient propulsion, predictive maintenance, and retrofit solutions—are extending asset lifecycles and accelerating the shift to clean rail systems worldwide.Why rail Is central to decarbonization
Rail freight emits nine times less CO2 than road transport, making it a crucial element of net zero efforts and corporate supply chain decarbonization. With its inherently low energy and CO2 intensities – passenger rail emissions averaging approximately one-fifth those of air travel1, railways deliver a powerful tool for decarbonization that becomes increasingly vital as nations pursue their net zero commitments.
Given an increasing focus on Scope 3 GHG emissions, there are also considerable benefits of rail freight for corporate supply chains as rail transport emits nine times less CO2, and consumes six times less energy than road transport2, although exact comparisons are highly location- and fuel-specific. The foundation for this transformation already exists. The past decade has witnessed substantial growth in both urban transit systems and high-speed rail networks, creating the infrastructure backbone for convenient, low-emission mobility at scale.
Retrofitting existing diesel locomotives presents a viable pathway to sustainability. The locomotives are generally used in construction and maintenance, and one of their tasks is to supply power for electric tools. For example advanced battery-electric retrofits of diesel locomotives increases its lifecycles by 25 years, while AI-powered predictive maintenance optimizes asset productivity and reduces downtime.
Müller Technologie’s old diesel locomotive and new hybrid locomotive
Emerging trends shaping the future of rail
Investment in the global rail sector is growing three percent annually toward €240.8 billion by 2029, driven by electrification and high-speed rail routes.
Over the next decade, five critical trends will fundamentally reshape both railway infrastructure and rolling stock, creating new opportunities for innovation and competitive advantage across the rail industry. Success depends equally on concurrent advances in rolling stock technology, digitalization efforts, and integrated network planning that positions rail as the preferred choice for sustainable transportation.
Clean energy adoption and electrification
According to the IEA, rail transports around 7 percent of global passenger-km and 6 percent of tonne-km but accounts for only around 1 percent of transport emissions. This efficiency makes rail a prime candidate for further electrification to maximize sustainability. Solutions such as hybrid locomotives, biofuels, and hydrogen-powered trains play a vital role in reducing emissions in areas where full electrification is not feasible.
Growth through policy and infrastructure investment
Comprehensive policy frameworks - including electrification mandates, fiscal measures such as congestion charges and emission taxes, and sustainability targets - are unlocking long-term investments in rail infrastructure.
Digital transformation and smart operations
Digitization is reshaping the rail industry3 through AI, IoT, and big data analytics, enabling predictive maintenance, network optimization, and enhanced levels of operational efficiency.
Rapid innovation and automation driven by market expansion
With the rail market expected to grow 3 percent annually to €240.8 billion by 2029, the sector is entering a period of rapid innovation, driven by sustainability imperatives and evolving mobility needs. The steady progression toward automation and autonomous systems promises to deliver reliability and safety across rail networks.
Major economies are committing substantial capital to expand high-speed rail networks, while passenger experience enhancement through smart technologies and personalized services is redefining travel expectations and, in some cases, offering a viable alternative to air transport on some routes.
Challenges
The maintenance of rail infrastructure is encountering significant challenges that demand urgent attention to maintain sustainable, efficient, and dependable operations. With the pace of change rapidly increasing, infrastructure managers must take proactive and decisive action to address these issues and safeguard the performance and resilience of their networks.
Reactive maintenance dependency
Ineffective maintenance planning, driven by limited data accuracy and outdated asset management systems, results in a reliance on reactive maintenance.Deteriorating infrastructure
Years of underinvestment have left many rail networks aging and in need of frequent repairs and renewals. Growing demands on limited track capacity only intensify these challenges.Lack of strategic alignment
Maintenance efforts often lack a consistent strategic framework, with priorities set through ad-hoc decisions. This leads to inefficient use of resources and hinders efforts to optimize network performance.Slow pace of modernization
The presence of fragmented systems, incompatible software tools, and inconsistent standards across regions complicates modernization efforts and hampers effective change management.Rising political pressure
With public funding increasingly shifting from expansion projects to maintenance, infrastructure managers face growing political expectations to deliver measurable outcomes.ABB solutions
In meeting these challenges, ABB builds on its heritage and deep expertise which saw it pioneer the electrification of rail technology more than a century ago, beginning with developing and building electric trains for the Swiss and Swedish rail networks. Today, ABB's comprehensive rail technology portfolio includes:
Energy Efficiency and Decarbonization
ABB's comprehensive portfolio of propulsion technology, including traction motors, batteries, battery chargers, and converters are at the heart of sustainable rail propulsion, delivering high efficiency power that minimizes energy consumption across electric and hybrid operations. Electric motors for example, typically operate at 90% efficiency, compared to the 35-45% efficiency of diesel engines.
The Enviline Energy Recuperation System (ERS) captures and delivers surplus braking energy back to the grid, dramatically reducing overall energy consumption while enhancing network resilience.
Extended Asset Lifecycles
ABB's retrofit and service solutions are designed to increase return on investment and keep equipment operating at the highest efficiency and productivity level throughout its entire lifetime.
Infrastructure Optimization and Digitalization
ABB's digital twin technology and data analytics platforms enable comprehensive network optimization, breaking down operational silos and fostering real-time collaboration between infrastructure managers and operators. Predictive maintenance systems utilize advanced sensors and AI to optimize maintenance schedules, reducing downtime and maximizing asset productivity.
Integrated Network Solutions
ABB’s renewable energy integration capabilities ensure sustainable power sourcing. They collectively enable the development of integrated, efficient, and sustainable rail networks essential for meeting 2050 decarbonization targets.
Integrated Network Solutions
ABB’s renewable energy integration capabilities ensure sustainable power sourcing. They collectively enable the development of integrated, efficient, and sustainable rail networks essential for meeting 2050 decarbonization targets.
Case studies around the world
USA
ABB and Stadler Collaborate to Advance US Passenger Rail
ABB's traction converters and Pro Series traction batteries address the decarbonization challenge through two distinct applications: full battery-powered trains for Metra and hydrogen passenger trains for Caltrans. This showcases ABB's flexible rail technology portfolio enabling zero-emission solutions across different operational requirements.
Canada
ABB expands sustainable transport in Montreal
ABB played a key role in the REM project by supplying customized electrification and automation solutions to support the fully electric light rail system in Montréal. This included the development of a unique cable tray expansion joint system for the South Shore branch and the provision of critical components such as BORDLINE® M75 auxiliary converters, AC/DC relays, and circuit breakers to power and protect the trains.
Switzerland
In pursuit of sustainability and beauty in Switzerland
The Müller Technologie project exemplifies ABB's retrofitting solutions and energy management systems extending asset lifecycles by 25 years. The three-mode operation (overhead lines, batteries, diesel generator) directly addresses the challenge of optimizing existing infrastructure while minimizing CO2 emissions.
The Gornergrat Railway takes its guests from Zermatt to a mountain ridge with a breathtaking panorama. To maximize this experience, 45 million Swiss francs have been invested in five new Polaris multiple units from Stadler, equipped with efficient traction converters from ABB.
Czech Republic
ABB and Škoda Group power Czech railways
This partnership features ABB's Traction Battery Pro Series enabling sustainable operations on partially electrified lines, directly solving the infrastructure capacity challenge. The 15-year service agreement demonstrates ABB's commitment to long-term asset optimization, while the battery-electric multiple units contribute to the decarbonization efforts of the Czech Republic's rail network.
Austria
Hybrid maintenance vehicles help Austria’s railways to decarbonize
When ÖBB decided to renew its aging maintenance fleet, it ordered innovative hybrid vehicles that will support its transition to carbon neutrality. The new vehicles will be supplied by Plasser & Theurer who chose ABB to provide state-of-the-art traction converters and high-performance lithium-ion batteries for 51 vehicles.
India
Powering the highest railway bridge in the world
ABB India is playing a key role in powering the Chenab Bridge, the highest railway bridge in the world. Our team has successfully delivered, tested, and commissioned 33kV and 11kV GIS panels as part of the E&M package in the USBRL Jammu section. In addition our lighting and ventilation systems power its extensive tunnel network as well as our ArTuK panels.
United Kingdom
ABB supports HS2 transformation
ABB will provide low voltage power components, Uninterruptible Power Supplies (UPS) and central battery systems to support the four HS2 state-of-the-art transport hubs at London Euston, Old Oak Common, Interchange, and Birmingham Curzon Street.
Australia
ABB traction battery technology drives Adelaide Metro
ABB traction battery technology has enabled 44 Adelaide Metro train sets to be converted to diesel-hybrid operation, with a further 6 sets to be converted in the coming months. The solution has reduced noise and emissions to improve the travel experience for the nearly 16 million commuters a year who use the service.
These customer cases collectively demonstrate ABB's core technologies solving the fundamental challenges of reducing CO2 emissions, asset lifecycle extension, and infrastructure optimization across diverse global markets and applications. In this way, we help the rail industry outrun- leaner and cleaner.
Sources:
1. Good, better, best: Railways are advancing their ESG agenda
2. Everysense: Reduce your scope 3 emissions
3. BCG. Route to a fully digitalized rail system