Decision of the EU Commission: Green stamp for nuclear and gas

The EU Commission has classified investments in new gas and nuclear power plants as climate-friendly. While some EU countries welcome this, others are voicing serious concerns. The EU Parliament has also criticized the project.

“EU taxonomy – accelerating Europe’s sustainable investments!”: This was the big lettering in the press room of the EU Commission in Brussels today. After all, that is the declared goal of the European Union: by the middle of the century, they want to achieve climate neutrality and ensure the energy supply is CO2-free.

This requires a restructuring of the economy and society and – according to experts – annual investments of around 350 billion euros. Money that has to come from somewhere, also from private investors. Hence the so-called taxonomy: A guide for investors that is intended to show whether their investments are actually sustainable and climate-friendly. For example, when buying shares in an equity fund. If one of these gets the EU taxonomy label, then it is considered a green investment because the money goes into wind and solar power plants, for example.

Only for a transitional period and subject to conditions

But now the EU Commission also wants to give the green stamp to investments in new nuclear reactors or gas-fired power plants. That’s official as of today. Commissioner Mairead McGuinness said this will ensure that nuclear and gas power generation can support the difficult transition to climate neutrality. However, McGuinness emphasized, only for a transitional period and subject to conditions. Strict conditions would apply, also with regard to the time periods.

Only new nuclear reactors should fall under the taxonomy, the building permit for which will be issued by 2045 at the latest, by 2050 the disposal of nuclear waste must be clarified safely. Operators of gas-fired power plants must switch from natural gas to low-CO2 electricity generation by 2035.

But despite these conditions, there is a lot of criticism of this taxonomy: “I believe that this also damages the credibility of the Green Deal in public,” says economist Guntram Wolff from the Brussels think tank Bruegel. There is definitely a risk that investments will be misdirected.

Concerns, skepticism but also support

Such concerns also come from some EU member states, for example from Austria: Every euro that flows into nuclear energy or natural gas is lost for actually green energy sources, they say. Other EU countries such as Denmark and Sweden view the green stamp for gas-fired power plants with great skepticism.

On the other hand, support comes from France or from Eastern Europe. Above all, French President Macron, who is currently on the election campaign, has repeatedly made it clear that climate neutrality cannot be achieved without nuclear power. This is also the case in Poland and Hungary. That’s why nobody expects the EU member states to end up blocking the Commission’s taxonomy.

Criticism also from the EU Parliament

The EU Parliament has also criticized the project. Many MEPs fear that the taxonomy will in future not only be used as a benchmark for private investments, but also for how the EU spends its public money. That is one of the possible consequences, says the Dutch MEP from the Greens, Bas Eickhout, and speaks of a historic mistake.

In Brussels, some believe it is possible that the taxonomy plans will ultimately be blocked by the EU Parliament, because criticism has also come from the Christian Democratic EPP group. It’s not certain, but it will be decided in the next six months.