EU finally confirms nuclear power and natural gas in green taxonomy classification proposal

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The European Union (EU) has finalized and proposed regulations to include nuclear power and natural gas in the green taxonomy despite strong opposition from some member states.

According to Deutsche Welle (DW) and others on the 2nd (local time), the EU Commission finalized and proposed a regulation classifying investments in nuclear and natural gas power generation as environmentally and climate-friendly sustainable finance under the green taxonomy. Mairead McGuinness, EU Commissioner for Financial Services, said, "This shows how natural gas and nuclear power can contribute to the difficult transition to climate neutrality," adding, "Strict conditions were set for inclusion in the green taxonomy."

According to the regulation, investments in new nuclear power must have obtained construction permits before 2045, have planned and procured funds, and be located in countries capable of safely disposing of radioactive waste by 2050 to be classified as green. For natural gas power investments, they are classified as green if the greenhouse gas emissions per 1 kWh of electricity produced are less than 270gCO2eq (carbon dioxide equivalent) or if the annual greenhouse gas emissions over 20 years are less than 550kgCO2eq. Investments in new gas power plants will be classified as green until 2030, and gas power plants must transition to low-carbon gas or hydrogen from 2035.

This EU announcement finalizes the draft sent to member states on the 1st of last month. Although the draft faced backlash from expert advisory committees, investors, and member states calling it "greenwashing" from the time of its release, the EU Commission largely maintained the original plan. McGuinness emphasized, "Including nuclear and natural gas in sustainable investments may be imperfect, but it is a genuine solution," adding, "It will help achieve the ultimate goal of carbon neutrality."

The proposed regulation will be officially discussed by EU member states and the EU Parliament in the future. If approved, it will take effect from January 2023. The regulation can be rejected if 20 out of the 27 EU member states oppose it or if more than 353 members of the EU Parliament vote against it. DW reported, "It does not seem that EU member states will oppose this, but it is uncertain whether the EU will win in the European Parliament."

Austria has announced plans to file a lawsuit related to this, and Denmark, the Netherlands, and Sweden have sent letters opposing the classification of natural gas as green.

This content was produced with the assistance of AI translation services.