Released January 10, 2022 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A leaked draft proposal from the European Commission (EC) to grant certain nuclear and gas-fired power projects "green investment" status has sparked angry reactions from some Member States.
The proposals would allow some nuclear and gas projects to be classed as "transitional" as the region moves to renewable energy, to benefit from European Union (EU) support as long as they meet certain, stringent criteria. New projects could be labelled green investments and included in Europe's "taxonomy of environmentally sustainable economic activities," making them more likely to attract financing from private investors. The taxonomy is a system designed to funnel billions of euros to clean-energy projects that will help the EU achieve its target of net zero emissions by 2050. Europe is divided over the use of nuclear power with some countries having banned it, others phasing it out and others building new plants. If the new proposals are accepted they will come into force next year.
Nuclear projects could be deemed green as long as they have a plan and funding in place to safely dispose of radioactive waste. They must also receive planning permission before 2045. Considering how long nuclear plants can take to get up and running, the commission also would extend green investment status to certain lifetime extension projects as long as they "include modifications and safety upgrades" to ensure they comply with the highest achievable safety standards. On the gas front, projects could be deemed green on a number of grounds, including producing emissions below 270 grams of CO2 equivalent per kilowatt-hour, replacing a more polluting fossil-fuel plant, and having a construction permit in place before the end of 2030.
"Taking account of scientific advice and current technological progress as well as varying transition challenges across member states, the commission considers there is a role for natural gas and nuclear as a means to facilitate the transition towards a predominantly renewable-based future," the European Commission said in a statement, following the leak.
Some ministers of Germany's new coalition government including, the Green Party's economy and climate protection minister, Robert Habeck, and Environment Minister Steffi Lemke, slammed the proposals as "greenwashing." Lemke told German media: "I think it is absolutely wrong that the European Commission intends to include nuclear power in the EU taxonomy for sustainable economic activities. The commission's proposal does not change the fact that nuclear energy is a high-risk technology that is dangerous, that creates garbage, that radiates for millennia and that has not yet been safely stored in any country in the world." But some coalition government members are in favor of the proposals.
Austria has threatened to litigate over the issue. Leonore Gewessler, climate action minister, said: "We will examine the current draft carefully and have already commissioned a legal opinion on nuclear power in the taxonomy. If these plans are implemented in this way, we will sue."
However, there is strong support for nuclear power's inclusion in the taxonomy from France, which relies on it for 70% of its power, along with Bulgaria, Croatia, Finland, Romania, Slovenia, the Czech Republic, Hungary, Poland and Slovakia. In October, those 10 EU member states submitted an open letter to the EU calling for nuclear power to be included alongside renewables in the transition away from fossil fuel-based energy. For additional information, see October 26, 2021, article--Europe Faces New Split Over Nuclear Power.
Last month, Industrial Info reported on the stark warning from the European Commission that unless there was a rapid increase in investment into extending the life of its existing fleet of nuclear reactors, 90% of them will be offline by the end of the decade. European Commissioner for Energy Kadri Simson said: "Today, the average age of the EU nuclear fleet exceeds 30 years. And according to our analysis, without immediate investments, around 90% of the existing reactors would be shut down around the time when they will be needed the most: in 2030. Extending their lifetime, safely, requires between 45 billion-50 billion euro. (US$51 billion-$56 billion)."
Power generators are planning about 230 gigawatts of natural gas and 145 gigawatts of nuclear power projects in Europe, according to Industrial Info's Global Market Intelligence (GMI)Power Project Database. This includes 17 active grassroot nuclear projects in Europe worth a potential US$177 billion, with a further 25 unit addition projects worth nearly US$117 billion. GMI Database subscribers can click here for related project reports. For additional information, see December 15, 2021, article--EU: Europe Must Accelerate Nuclear Power Investment.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The proposals would allow some nuclear and gas projects to be classed as "transitional" as the region moves to renewable energy, to benefit from European Union (EU) support as long as they meet certain, stringent criteria. New projects could be labelled green investments and included in Europe's "taxonomy of environmentally sustainable economic activities," making them more likely to attract financing from private investors. The taxonomy is a system designed to funnel billions of euros to clean-energy projects that will help the EU achieve its target of net zero emissions by 2050. Europe is divided over the use of nuclear power with some countries having banned it, others phasing it out and others building new plants. If the new proposals are accepted they will come into force next year.
Nuclear projects could be deemed green as long as they have a plan and funding in place to safely dispose of radioactive waste. They must also receive planning permission before 2045. Considering how long nuclear plants can take to get up and running, the commission also would extend green investment status to certain lifetime extension projects as long as they "include modifications and safety upgrades" to ensure they comply with the highest achievable safety standards. On the gas front, projects could be deemed green on a number of grounds, including producing emissions below 270 grams of CO2 equivalent per kilowatt-hour, replacing a more polluting fossil-fuel plant, and having a construction permit in place before the end of 2030.
"Taking account of scientific advice and current technological progress as well as varying transition challenges across member states, the commission considers there is a role for natural gas and nuclear as a means to facilitate the transition towards a predominantly renewable-based future," the European Commission said in a statement, following the leak.
Some ministers of Germany's new coalition government including, the Green Party's economy and climate protection minister, Robert Habeck, and Environment Minister Steffi Lemke, slammed the proposals as "greenwashing." Lemke told German media: "I think it is absolutely wrong that the European Commission intends to include nuclear power in the EU taxonomy for sustainable economic activities. The commission's proposal does not change the fact that nuclear energy is a high-risk technology that is dangerous, that creates garbage, that radiates for millennia and that has not yet been safely stored in any country in the world." But some coalition government members are in favor of the proposals.
Austria has threatened to litigate over the issue. Leonore Gewessler, climate action minister, said: "We will examine the current draft carefully and have already commissioned a legal opinion on nuclear power in the taxonomy. If these plans are implemented in this way, we will sue."
However, there is strong support for nuclear power's inclusion in the taxonomy from France, which relies on it for 70% of its power, along with Bulgaria, Croatia, Finland, Romania, Slovenia, the Czech Republic, Hungary, Poland and Slovakia. In October, those 10 EU member states submitted an open letter to the EU calling for nuclear power to be included alongside renewables in the transition away from fossil fuel-based energy. For additional information, see October 26, 2021, article--Europe Faces New Split Over Nuclear Power.
Last month, Industrial Info reported on the stark warning from the European Commission that unless there was a rapid increase in investment into extending the life of its existing fleet of nuclear reactors, 90% of them will be offline by the end of the decade. European Commissioner for Energy Kadri Simson said: "Today, the average age of the EU nuclear fleet exceeds 30 years. And according to our analysis, without immediate investments, around 90% of the existing reactors would be shut down around the time when they will be needed the most: in 2030. Extending their lifetime, safely, requires between 45 billion-50 billion euro. (US$51 billion-$56 billion)."
Power generators are planning about 230 gigawatts of natural gas and 145 gigawatts of nuclear power projects in Europe, according to Industrial Info's Global Market Intelligence (GMI)Power Project Database. This includes 17 active grassroot nuclear projects in Europe worth a potential US$177 billion, with a further 25 unit addition projects worth nearly US$117 billion. GMI Database subscribers can click here for related project reports. For additional information, see December 15, 2021, article--EU: Europe Must Accelerate Nuclear Power Investment.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
