On 18 May 2026, UIC held the first session of its Asia-Pacific Web Series, bringing together UIC members and partner organisations to explore how rail can strengthen its position within climate policy and finance frameworks.
The session provided an overview of UIC’s engagement in international transport policy, including efforts to position rail within Nationally Determined Contributions (NDCs), support the modal shift to rail, promote network expansion, and improve access to climate and carbon finance. These activities are part of UIC’s broader objective of ensuring that rail is recognised not only as a low-carbon mode of transport, but also as a strategic investment for achieving national and global climate goals.
Discussions highlighted positive trends across the Asia-Pacific region. Recent analysis presented by the Asian Transport Outlook (ATO) showed growing public investment in rail infrastructure alongside rail’s role in reducing transport emissions being increasingly recognised. While private investment remains spread across multiple modes of transport, the findings suggest that governments are increasingly prioritising rail as part of their long-term decarbonisation strategies.
A recurring theme throughout the session was that carbon markets have untapped potential to support railway investment. The participants examined developments across compliance, voluntary, and Article 6 carbon markets, noting that rail remains significantly underrepresented despite its substantial potential to reduce emissions. While modal shift and operational efficiency-related projects can produce measurable climate benefits, challenges remain around demonstrating additionality, establishing credible baselines, and navigating the limited number of methodologies currently available. At the same time, emerging opportunities under Article 6 mechanisms could provide higher-value revenue streams for qualifying projects, particularly where governments are seeking solutions aligned with their NDC objectives.
The discussion was further enriched by perspectives from the China Academy of Railways Sciences (CARS), where ongoing developments in the national Emissions Trading System (ETS) and China Certified Emissions Reduction (CCER) programme are creating new opportunities for carbon asset management. Railway applications ranging from traction decarbonisation and energy efficiency improvements to modal shift initiatives were identified as promising areas for future development, underscoring the importance of robust baselines and methodologies.
Attention was also paid to discussing emissions beyond railway operations. Research presented by Southwest Jiaotong University (SWJTU) on the lifecycle carbon footprint of railway tunnel infrastructure demonstrated that construction activities account for the largest share of emissions, with production and construction processes accounting for the most significant portion. The findings highlighted the importance of adopting a whole-life approach to decarbonisation through low-carbon materials, energy-efficient construction practices, and improved asset management.
Across all presentations and discussions, participants reached a joint conclusion: while opportunities to mobilise carbon finance for rail are expanding, significant technical and institutional barriers remain.
Methodology development, baseline setting, monitoring and verification requirements, and capacity constraints continue to limit the sector’s ability to fully benefit from emerging carbon-market mechanisms.
As interest in climate finance and carbon markets continues to grow, UIC is strengthening its work to support members in accessing these opportunities. Through technical guidance, methodology development, knowledge sharing, and international advocacy, UIC is working to ensure that rail is better represented within climate finance frameworks and carbon market mechanisms. Continued collaboration with members and partners will be essential to advancing this agenda, unlocking new investment pathways, and accelerating the contribution of rail to climate goal worldwide.
