Spanish rail giant CAF has produced a detailed assessment to examine the contentious light rail initiative in Israel. The project, valued at about €1,000 million, involves stops within areas identified as settlements in Palestinian territories. The independent social impact report, funded by CAF and submitted to the Ministry of Industry, concludes that CAF’s activities in East Jerusalem do not suggest a scenario where human rights due diligence would fail. Civil society organizations advocating for Palestinian rights dispute this stance. Amnesty International published a note claiming that CAF’s tram in Jerusalem could become a partner and beneficiary of occupation policies. The United Nations Human Rights Council in 2017 labeled the project illegal for violating several resolutions. Amnesty International notes that other international railway operators declined to participate, and CAF has continued to pursue new tenders for two additional lines in the Occupied Palestinian Territories. The broader geopolitical context remains highly contested and widely debated among international actors.
Israel is widely described in international discourse as occupying and militarily colonizing territories recognized as Palestinian. The tram project has been criticized by the United Nations Human Rights Council as illegal under international law. The Committee for Solidarity with the Arab Cause has highlighted routes designed by Israeli authorities, pointing to demolitions and expropriations linked to the project and arguing that such actions align with a broader occupation deemed illegal by international humanitarian norms.
In the West Bank, more than 700,000 Israeli settlers reside in numerous settlements scattered across the region, protected by a substantial separation barrier and a significant military presence. Israel maintains control over much of Palestinian territory, with Gaza access restricted and East Jerusalem affected by policy measures that influence the broader contours of Palestinian governance.
CAF is a publicly traded multinational headquartered in Beasain, Guipuzcoa, which reported more than €3,000 million in revenues in 2022. The company is preparing for its next shareholder meeting on June 10. The company’s report responds to a request from the Department of Industry, which had received a complaint from the CSCA. A memo from the National Contact Point, as disclosed by this newspaper, indicates that the government has granted CAF a one-year period to submit an independent assessment of the light rail system.
The document submitted by CAF to the Ministry, and obtained by this newspaper from the Prensa Ibérica group, references international law applicable to the Israeli occupation, including the Geneva Convention, the Vienna Convention on Human Rights, and OECD guidelines for multinational corporations. The consultant from the Responsible Business firm who prepared the report visited CAF facilities in Jerusalem for two days and traveled on one of the already constructed tram lines. Four employees were interviewed, including two Palestinians, though it was noted that higher-level decision making remains in the boardroom.
CAF’s position states that no further evaluation or details will be provided on the subject. The company responded to inquiries and cited the 2022 Sustainability Report, which contains a general reference to complaints regarding the project submitted to the Ministry’s National Contact Point. CAF claims that the project progressed in Jerusalem without specifying that issues pertain to segments and settlements in East Jerusalem.
Infrastructures that influence employment
The assessment acknowledges that international humanitarian law, including Article 49 of the Geneva Convention, prohibits using infrastructure to displace residents or settlers. It argues, however, that the tram does not constitute displacement since most settlements predate the project and because the service is framed as urban transport rather than a large-scale railway that alters demographic patterns. Critics contend that the project effectively reconfigures territorial realities in ways that international bodies scrutinize. The tram, as described, is linked to multiple regions that some governments and international organizations regard as occupied territories.
Another argument presented is that the tram offers a public service usable by Palestinians and that signage in Hebrew predominates, yet the system is intended to serve diverse communities with information presented in Arabic and English. Accessibility to East Jerusalem remains challenging for many Palestinians due to checkpoints nearWest Bank towns and a broader occupation framework that affects movement and civil status.
The report asserts a positive impact on the local economy, citing conversations with Palestinians who believed that proximity to the tram helped small businesses thrive.
Partners on the United Nations blacklist
The Solidarity Committee with the Arab Cause, which filed a complaint in 2019, disputes both the spirit and content of CAF’s report. CAF’s local partner for tram upgrades is the Israeli company Shapir, which appears on the United Nations Human Rights Council’s list of entities that contribute to or benefit from harm to Palestinian rights. Amnesty International has urged the United Nations to include CAF on that list due to involvement in this project.
When CAF won the bid with Shapir in 2019, CAF asserted that the Israeli partner was not on the UN list as of 2020. CSCA contends that CAF did not conduct due diligence with its partner in the multi-million dollar project, noting that Shapir already had operations in the Occupied Territories and was involved in building homes and essential infrastructure in settlements. The broader implication is that CAF’s ties to the occupation extend through various channels, including financial networks and procurement.