EU Plans to Label Natural Gas and Nuclear Energy as "Green Investment"

By IndraStra Global News Team

Cover Image Attribute: Block A, Biblis Nuclear Power Plant (Germany) / Source: Peter Stehlik PS-2507, Wikimedia Commons
Cover Image Attribute: Block A, Biblis Nuclear Power Plant (Germany) / Source: Peter Stehlik PS-2507, Wikimedia Commons

By IndraStra Global News Team

European Union has drawn up plans to label some natural gas and nuclear energy projects as "green" investments after a year-long battle between governments over which investments are truly climate-friendly. In January, the European Commission is expected to propose rules deciding whether gas and nuclear projects will be included in the EU "sustainable finance taxonomy". 

The proposal aims to support the 27-nation bloc’s shift towards a carbon-neutral future. But the fact the Commission quietly distributed the text to member states late on Friday, in the final hours of 2021 after the much-delayed document had been twice promised, highlighted the rocky road to draft it. If a majority of member states back it, it will become EU law, coming into effect from 2023.

A draft of the Commission's proposal, seen by Reuters, would label nuclear power plant investments as green if the project has a plan, funds, and a site to safely dispose of radioactive waste. To be deemed green, new nuclear plants must receive construction permits before 2045.

Investments in natural gas power plants would also be deemed green if they produce emissions below 270g of CO2 equivalent per kilowatt-hour, replace a more polluting fossil fuel plant, and receive a construction permit by December 31, 2030. Such plants must meet other conditions including that they are technically equipped to burn low-carbon gases.

Gas power generation would be labeled green on the grounds that it is a "transitional" activity - defined as one that is not fully sustainable, but which has emissions below industry average and does not lock in polluting assets during the shift to clean energy.

EU countries and a panel of expert advisors will scrutinize the draft proposal, which could change before it is due to be published later in January. Once published, the proposal could be vetoed by a majority of EU countries or by the European Parliament.

With reporting by BBC and Reuters

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IndraStra Global: EU Plans to Label Natural Gas and Nuclear Energy as "Green Investment"
EU Plans to Label Natural Gas and Nuclear Energy as "Green Investment"
By IndraStra Global News Team
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