The European Investment Bank (EIB) is providing up to €95 million (£79m) to support the rollout of a new fleet of carbon-neutral trains in Berlin.
Railway company Niederbarnimer Eisenbahn (NEB) will replace diesel locomotives with battery-powered trains and operate them between Berlin and the surrounding Brandenburg area from December 2024.
The trains will run on zero emissions as the railways electricity will come entirely from renewable energy sources.
The company has ordered 31 new trains from Siemens for the 10 East Brandenburg lines between Berlin and the Polish border.
EIB Vice President Ambroise Fayolle said: “We are pleased to be able to take such a big step on the road to carbon-neutral regional transport in the surrounding area of Berlin.
“Attractive regional trains are essential for the transition to climate-friendly mobility as they encourage commuters to switch from road to rail, thus avoiding the CO2 emissions and congestion caused by the use of private transport.”