The European Parliament has agreed to classify natural gas and nuclear power as green in specific cases thus facilitating their access to financing. This has triggered significant debate among those who support the idea and those who oppose it. Critics say these new rules risk reshaping the EU’s approach to climate change and postponing its plans to become carbon neutral by 2050.
On 6 July 2022, 328 members of the European Parliament backed the Commission’s plan to introduce gas and nuclear power to the EU’s taxonomy of sustainable energy sources. Another 278 MEPs opposed the motion and 33 abstained.
The new rules mean that gas-fired plants built by 2030 or by 2035 with the aim of replacing coal or fuel-fired plants will be considered as transitional energy sources providing they remain under a maximum emissions cap over two decades. However, only natural gas used to cool or heat many homes simultaneously will be considered sustainable, meaning that other supplies will be excluded. New nuclear plants that are built based on modern technological advancements and modifications put into place to prolong the life of the plants will be approved until 2040 or 2045.
Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and Capital Markets Union, commented positively on the outcomes of the vote, noting: “The Complementary Delegated Act is a pragmatic proposal to ensure that private investments in gas and nuclear, needed for our energy transition, meet strict criteria. Investment in renewables is already prioritised in our Taxonomy – this is our future. Our proposal ensures transparency so investors will know what they are investing in. Today brings much-needed clarity to the EU position.”
While those lawmakers who voted for the new taxonomy justify this as a necessary step towards the transition to green energy sources, many consider that the approach is not aligned with Europe’s vision and represents a huge shift in its climate policy. The EU’s taxonomy, which is a classification system intended to define environmentally sustainable economic activities, aims to enhance green investment and prevent greenwashing. However, critics of the move have commented that including gas in the taxonomy risks diverting a great deal of investment into polluting energy sources. Shortly after the vote, the European Environmental Bureau, a Pan-European environmental lobby group, published a statement saying:
“Billions of euros in ‘green’ financing now risk being diverted into polluting energy sources that are far from being harmless and temporary, at the expense of energy efficiency and renewables.”
The pandemic-related crisis and Russia’s war against Ukraine have already slowed down the EU’s progress towards phasing out coal. In 2021, EU countries increased coal power generation by 20% compared to the previous year. Critics say that while the new taxonomy promises to divert investment from coal to green energy sources, including nuclear and gas, it will prolong the EU’s dependence on fossil fuels.
Furthermore, the new rules are contra to the EU’s pledge to halve carbon emissions by 2030 and become climate neutral in 2050. Increased investment in natural gas power generation risks eradicating the EU’s long-standing efforts toward climate change issues, as natural gas produces 58.5% as much CO2 as coal. In contrast, nuclear power plants produce no carbon dioxide but the world still remembers the danger of nuclear disasters.