Problem The European Rail value chain is undergoing a profound transformation “to deliver, via an integrated system approach, a high capacity, flexible, multi-modal, sustainable and reliable integrated European railway network by eliminating barriers to interoperability and providing solutions for full integration, for European citizens and cargo”, to “make rail the everyday mobility”1. Technological innovation tends to introduce new material dependencies, reinforcing long-term pressure on supply systems. For this reason, the deployment of multiple Rail innovations in parallel, whilst aimed at delivering a coordinated and time-bound transformation, is significantly increasing not only the complexity and interdependencies of the Rail value chain, but also systemic supply chain risks, in a context marked by heightened geopolitical tensions, strong supply dependencies, growing constraints on access to critical raw materials and components, and competition between industrial sectors for the same pool of materials. So, while the Rail transformation in which the European Commission and European industries are investing jointly is essential to enhance performance, sustainability and competitiveness in the EU, it also amplifies existing vulnerabilities and generates new ones as the Rail innovations under development are critical material-intensive technologies. Why it matters (1) Like in other EU industrial sectors, Rail supplies are impacted by the too many EU dependencies in Critical Raw Materials (CRM) and components and by the continuous, multiple disruptions due to the permacrisis status in which we are living. Despite ‘we’re not alone in this’, there is the need for an ad hoc attention to increase the autonomy of supplies for the European Rail sector and its innovations because without a fully functioning and modern railway system, Europe cannot fully deliver on several of its ambitions—not only in transport, such as the Single European Railway Area and the Trans-European Transport Network (TEN-T), but also on broader structural objectives, including achieving a climate-neutral continent and translating the Single Market’s principles of free movement of people and goods into operational reality. Why it matters (2) While addressing the challenge of future Rail supplies, the clear identification of the multiple needs of the EU Raw Materials value chain has been made. Addressing these will help not only the Railway sector to become more resilient and deliver its EU-level mission, but also the other industrial sectors affected by similar supply risks. In fact, the European Raw Materials value chain—from exploration and extraction to processing, recycling and substitution—has become both a strategic industrial sector in its own and a critical enabler for multiple key EU industries. What should be done Strengthening the resilience, sustainability, and strategic autonomy of the European Rail value chain as well as reinforcing the European Raw Materials value chain requires a systemic, coordinated and forward-looking policy approach, combining industrial, regulatory, financial and technological measures. A wide set of recommendations derived from the research and lessons learnt within the “LEADER 2030” project have been identified. In this Policy Brief they are structured into seven cross-cutting thematic priorities, reflecting the key levers for action at EU, national, regional and industry levels. 1 Europe’s Rail Joint Undertaking (2022), Multi-Annual Work Programme, p. 10.
Bocci et al. (Wed,) studied this question.