THE ECONOMICAL METHODS OF EUROPEAN UNION TO UNDERPIN GREEN TRANSPORT INFRASTRUCTURE

Abstract

Abstract: This article analyzes the European Union’s economic mechanisms for greening transport infrastructure, a sector accounting for 25% of EU greenhouse gas emissions. Utilizing the Fit for 55 framework, the study examines the transition from fossil fuel dependency to a €25.8 billion Connecting Europe Facility (CEF) investment model. Statistical indicators for 2025 show that 77% of CEF funding is now targeted at rail, aiming to double high-speed traffic by 2030. Furthermore, the Sustainable Transport Investment Plan estimates a €310 billion annual requirement to achieve carbon neutrality, leveraging the EU Emissions Trading System (ETS2) to internalize external costs. The findings suggest that this green transition yields a 0.05–0.2% rise in Total Factor Productivity (TFP), decoupling economic growth from resource consumption.