22.02.2022
The European Commission recently presented its long-awaited regulatory proposal as to how natural gas and nuclear energy should be treated in the EU taxonomy for sustainable finance activities.
Energy types are essentially only entered into the taxonomy for a transitionary period in order to legitimise their role in achieving the 2050 climate goals. The content of the proposal has been known for some time and the debate has reached far and wide with clear dividing lines between countries and industries. Germany and other coal-dependent countries have pushed to include gas, but want to exclude nuclear energy, whilst France, for example, has pushed to include nuclear energy as well. Austria is one of the countries that has spoken out vehemently against both.
The European Commission has set a requirement that direct emissions from natural gas cannot exceed 270 g CO2e/kWh (a new gas-fired power plant produces c. 400 g CO2e/kWh). It also requires that any new gas-fired power plant must replace a coal-fired power plant and must also be completed before 2031. CCS will clearly be a necessary measure in meeting these emission restrictions. The European Parliament and individual member states will now debate the regulation and have four months to approve or reject the proposal.
Trouble for natural gas and nuclear energy: Disputes over the EU taxonomy The European Commission recently presented its long-awaited regulatory proposal as to how natural gas and nuclear energy should be treated in the EU taxonomy for sustainable finance activities. Different forums of discussion Energy types are essentially only entered into the taxonomy for a …
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