THE EUROPEAN PARLIAMENT DECIDES TO INCLUDE GAS AND NUCLEAR IN THE EU TAXONOMY ON CLIMATE-FRIENDLY ENERGY SOURCES

Problem: The EU Commission’s proposed Taxonomy Complementary Climate Delegated Act (Third Delegated Act) was agreed to in early July, after the EU Parliament voted not to object to it. The regulation includes specific nuclear and gas energy activities in the list of environmentally sustainable economic activities covered by the taxonomy and its disclosure requirements.

The decision will weaken the position of renewable energies in the EU Taxonomy by putting them in direct competition to fossil gas and nuclear energy, assuming it goes into effect.

Politics: In contrast to the ordinary legislative procedure, a “delegated act” put forward by the EU Commission is automatically adopted, if neither the EU Parliament nor the Council of the EU voice objection to the proposal.

The inclusion of fossil gas faced criticism of “greenwashing” and problematic investment incentives in the face of the Russian war in Ukraine.

On the issue of nuclear energy, member states like France see in nuclear plants their climate-neutral future, while others say that, due to nuclear waste, it is not a sustainable energy. The drastic increase in energy prices and the looming gas shortages convinced many of the (short-term) necessity for nuclear energy.

Austria and Luxembourg have indicated their intention to sue to revoke the inclusion of nuclear and natural gas, with Spain and Denmark considering joining them.

Timeline: The delegated act will enter into force, if no lawsuits are successful, and be fully operational by January 1, 2023.