EU Allocates €2.8 Billion to 94 Green Transport Projects, Including Cyprus Port Upgrades

EU Allocates €2.8 Billion to 94 Green Transport Projects, Including Cyprus Port Upgrades

Railway modernization, port shore-side power, and smart traffic networks lead the new Connecting Europe Facility investments.

The European Commission has selected 94 transport projects to receive nearly €2.8 billion in EU grants under the Connecting Europe Facility (CEF). The projects include the modernization of railways, inland waterways, and maritime routes through the Trans-European Transport Network (TEN-T).

Among the selected projects is funding for Cyprus, aimed at upgrading its ports with shore-side electricity systems to reduce emissions from moored vessels.

According to the European Commission’s statement, these projects will not only improve connections between European regions and cities — from north to south and east to west — but will also make the EU's internal market more competitive and resilient.

Green Transition Relies on Rail Transport

Rail transport will receive the largest share of funding (77% of the total), investing in significant infrastructure upgrades across both the TEN-T core network and its extended network, particularly in cohesion countries. These include the construction of Rail Baltica in the Baltic region and Poland, as well as improvements in Greece and Slovakia. High-speed rail lines will also be developed in the Czech Republic and Poland.

Additionally, 46 projects in 11 member states, including Austria, Germany, Italy, Hungary, and Sweden, will implement the European Rail Traffic Management System (ERTMS) on trains and tracks, improving rail safety and cross-border interoperability.

Greener Ports and Greater Resilience

The Commission also announced investments in several projects to reduce the environmental impact of maritime and inland waterway transport. These include port upgrades in Ireland, Cyprus, Malta, Croatia, and Poland with shore-side electricity systems to cut emissions from berthed vessels.

Furthermore, support will be given to the construction and upgrading of multipurpose icebreakers in Estonia, Finland, and Sweden, enhancing the safety and resilience of submarine cables in line with the EU’s recent action plan.

In France and Spain, digital traffic management systems will be developed to improve safety and efficiency for short-sea shipping and reduce congestion.

For inland waterways, upgrades will take place along the Rhine in France, while Belgium will advance the digitalization of inland waterway transport.

Smarter and Safer Transport Networks

In the road transport sector, safe and secure parking areas will be built or upgraded in 10 member states, including Germany, France, Italy, and Romania. The projects will also support the rollout of Cooperative Intelligent Transport Systems (C-ITS), improving road safety and traffic flow, particularly in urban areas.

Additionally, air traffic management projects will continue to advance the Single European Sky initiative, creating a safer, more efficient, and sustainable aviation system. These efforts aim to reduce congestion, cut emissions, and improve the overall air travel experience, according to the Commission.

Urban mobility will also see improvements, with funding to prepare for the construction or upgrade of multimodal passenger hubs in cities such as Leuven (Belgium), Norrköping (Sweden), Nice and Marseille (France), and Bolzano (Italy). These hubs will enable seamless connections between various modes of transport, facilitating urban mobility.

Strategic and Solidarity Investments

The European Commission also noted that the EU is reinforcing its solidarity corridors with Ukraine, with projects to improve railway connectivity and border crossings between Slovakia and Ukraine, as well as Romania and Moldova. “EU support will help Ukraine adopt the standard EU track gauge, enabling smoother cross-border rail traffic and strengthening regional trade,” the statement said.

Additionally, the EU will back a project to enhance the accessibility and resilience of infrastructure in the Arctic region to secure supply chains and develop dual-use infrastructure capable of withstanding climate change.

The Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, stated that by providing nearly €2.8 billion in EU funding, “we are delivering on Europe’s promise for a modern, sustainable, and resilient transport network. These 94 projects will not only improve cross-border connectivity and efficiency but also boost competitiveness across the continent. From Rail Baltica in the north to shore-side electrification in southern ports, and from safe road networks to a smarter Single European Sky, this investment is a cornerstone of the Green Deal and our geopolitical resilience,” he said.

The CEF committee approved the list of 94 selected projects on Wednesday. The European Commission will now formally adopt the selection decision, and CINEA will begin preparing grant agreements for the selected projects. These agreements are expected to be finalized by October 2025. The results are currently provisional and will become official once the Commission issues the corresponding award decision.

The 94 projects were chosen from a total of 258 applications submitted under the recent call for proposals, which closed on 21 January 2025.

EU funding will be provided in the form of grants, which will co-finance the total eligible cost of the projects.

The CEF Transport program for 2021–2027 has a total budget of €25.8 billion, available to fund projects in all EU member states, as well as in Ukraine and Moldova, two CEF-associated countries. With this latest selection, 95% of the program’s budget has now been allocated.

Since its launch in 2014, the Connecting Europe Facility has supported 1,861 transport projects (including the latest 94), with a total funding amount of €47.34 billion.

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