The railway industry is a significant contributor to environmental degradation due to its reliance on traditional materials. The use of recycled materials offers an opportunity to reduce environmental impacts, enhance sustainability, and reduce costs. However, a lack of standardized guidelines for incorporating recycled materials has limited their widespread adoption. This research paper investigates the current applications of recycled materials in railway systems globally, evaluates their environmental and economic benefits, and provides a comprehensive framework for standardization. Case studies from the European Union, India, and the United States are analysed, leading to actionable recommendations for policymakers, engineers, and industry stakeholders.