Nuclear and Gas Win 'Green' Investment Status in European Union

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A controversial proposal by the European Commission (EC) to award temporary "green investment" status to nuclear power and gas-fired projects has been approved in a final vote by the European Parliament.

A motion to veto the EC's proposal to include nuclear and gas in the European Union's (EU) sustainable finance taxonomy was defeated by 328 votes to 278. A minimum of 353 votes was needed to reject the plan. Taxonomy regulation is part of the Commission's action plan on financing sustainable growth and aims to boost green investments and prevent "greenwashing." The ruling is expected to spur investment into new nuclear and gas-fired projects and comes despite two key committees in the Parliament voting against the motion last month. For additional information, see June 27, 2022, article--No 'Green Status' for Nuclear and Gas-fired Power.

The Commission argued that gas and nuclear could be used as a temporary bridge to help the EU speed up its transition from coal to renewables and achieve climate neutrality by 2050. Those activities already included in the EU taxonomy and which benefit from green investment status include wind energy, solar energy, geothermal, hydrogen, hydropower and bioenergy.

Mairead McGuinness, Commissioner in charge of Financial Services, Financial Stability, and Capital Markets Union, said: "I welcome the outcome of this vote. 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 prioritized 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."

The vote outcome, which was roundly condemned by major environmental groups and certain EU Member countries, was welcomed by the power sector; nucleareurope, which represents nearly 3,000 European companies working in the nuclear industry, applauded the outcome. It highlighted that the European Commission's own scientific body, the JRC, had concluded that nuclear power is as sustainable as other power-producing technologies already considered as taxonomy-compliant (i.e. renewables). "The science clearly states that nuclear power is sustainable and essential in the fight against climate change. It is fantastic to see that a majority in the European Parliament has decided to listen to the experts and take the right decision" stated Yves Desbazeille, nucleareurope director general. "We have less than 30 years left to decarbonise our economy in a sustainable way. By listening to the science, these Members of the European Parliament (MEPs) have strengthened the EU's chances of achieving this ambitious goal."

Germany's largest industry association, BDI, also welcomed the decision. Holger Loesch, deputy general manager of BDI stated: "The EU Parliament has cleared a high hurdle for financing the European energy transition. With the EU taxonomy, the way is now open for financial flows in the transition from coal and natural gas to renewable and alternative gases, giving the industry planning certainty. Our bridging technology for the age of renewables is gas. For security of energy supply in the midst of the current energy crisis, investments in gas infrastructure are needed more than ever, especially in liquefied natural gas (LNG) terminals. New gas-fired power plants must be hydrogen-capable--and therefore CO2-neutral--in the long term."

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.