EU proposes rules to label certain investments in gas and nuclear energy as ‘green’

LAST UPDATE: 14.17

Investment in some gas and nuclear power plants will be labeled “green” under rules proposed by the commission on Wednesday, a plan that has divided countries and investors and which some officials will try to block.

“Under strict conditions, natural gas and nuclear power can act as bridges to a greener energy system,” European Commission Vice President Valdis Dobrovskis tweeted, according to Reuters.

It took Brussels more than a year to decide whether gas and nuclear energy should be considered green investments, in a guide to investment guidance that will help raise the private equity needed to achieve its goals. EU on climate change.

In the final rules published on Wednesday, gas-fired power plants will be labeled green this decade if they meet the 270g emission limit of CO2 equivalent per kWh or have annual emissions of less than 550kg CO2e per kW for 20 years.

This could include gas plants with relatively high CO2 emissions today, provided they switch to low-carbon gas or reduce their operating hours in the coming years.

Gas plants must also switch to low-carbon gases by 2035. A requirement in a previous plan that stations should start changing by 2026 has been abandoned.

New nuclear power plants must obtain a construction permit before 2045 to receive the green investment signal and be in a country with a plan and funds for the safe disposal of radioactive waste by 2050.

The green light of nuclear and gas has been met with reactions on multiple fronts by regulators, some investors and countries, reflecting the wider divisions between governments on how to meet the EU’s zero emissions target. in 2050.

EU countries and the European Parliament have four months to possibly block these rules, which could be done by a majority of 20 of the 27 EU countries – a limit considered unlikely – or by a majority of legislators.

EU green lawmakers said on Wednesday they would campaign to garner the 353 votes needed to block the proposal, while they already have about 250.

“There is still a chance we can stop this,” said Germany’s Michael Bloss of the Greens.

Austria and Luxembourg have threatened to take legal action if nuclear power is classified as green, citing concerns about accidents and nuclear waste. Nuclear countries, including France, say CO2-free nuclear energy is crucial to achieving climate goals.

Gas is also a source of controversy, with Poland and Bulgaria among the states saying investment in gas should be encouraged to phase out more polluting coal. Denmark, Ireland and other countries say designating green gas as green would undermine the EU ‘s leadership in combating climate change.

If approved, the rules for gas and nuclear energy will take effect from January 2023.