In the European Court of Justice’s recent decision in case European Commission V Austria, both natural gas and nuclear power remain eligible to be considered “environmentally sustainable investments” under the EU taxonomy.
Why it’s interesting:
Here EU is trying to direct investment towards “green” projects – this classification opens the door for funding into gas & nuclear, which are controversial in terms of “clean energy” In many jurisdictions like Austria and Bulgaria
· In 2022, the European Commission adopted a regulation to include certain activities in the nuclear energy and fossil gas sectors, as transitional ways to accelerate progress to climate neutrality.
· Commission acknowledged at that time every country have different energy needs and mix and starting point to carbon neutrality. It touches on the tension between decarbonisation and energy security / transition pragmatism.
What to watch:
Whether this classification leads to more investment into gas and nuclear (rather than purely renewables) across member states.
How this affects the EU’s green-investment credibility (critics say it dilutes “green” meaning).
The implications for Ireland (and other countries) in how they invest, permit new projects.
Gewessler from Austrian Green Party said in a statement Wednesday. “If this decision stands, it undermines a fundamental principle: where it says green, it is no longer truly green. Those seeking green investments may end up supporting nuclear power or dirty gas.”
Let me know if your thoughts.
#ECJ #EnergyTransition #ClimateChange #Leadership