The European Union (EU) was entitled to include gas and nuclear energy in its green rulebook allowing the technologies to tap subsidies and cheaper finance, the bloc’s second highest tribunal ruled in a challenge brought by Austria.
Judges at the general court upheld the decision by the EU’s executive arm to declare the two energy sources as clean under the so-called taxonomy if certain conditions are met. It said that they could “contribute substantially” to climate change mitigation and adaptation.
The European Commission “was entitled to take the view that nuclear energy generation has near to zero greenhouse gas emissions and that there are currently no technologically and economically feasible low-carbon alternatives at a sufficient scale, such as renewable energy sources, to cover the energy demand in a continuous and reliable manner,” the Luxembourg-based court said in a statement on Wednesday.
The decision will come as a blow to climate activists who have fiercely criticised the role of gas and nuclear in the transition. The commission defended itself by saying that the criteria were strict enough so that environmental harm would be minimised. Being designated as green makes it easier to qualify for subsidies and often paves the way for access to cheaper finance.
It is a “dark day for the climate,” said Martin Kaiser, executive director of Greenpeace Germany. “It channels billions into gas and nuclear instead of driving forward the rapid transition to renewable energy.”
Since then, nuclear power has undergone a resurgence in Europe, with Germany among nations dropping its strident opposition to the technology amid expectations of growing power demand and stable clean energy sources to compensate for intermittent renewables.
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Kaiser said Greenpeace would now carefully review the ruling and decide on the next legal steps. The group has already challenged the green label for gas and nuclear in a separate case, while other organizations, including ClientEarth and WWF, have objected to the classification for gas specifically.nstruction permits by 2045 avoid significant harm to the environment and water resources.
How gas and nuclear can qualify for a green label under the commission’s taxonomy:
- Gas projects replacing coal and emitting no more than 270 grams of CO2 equivalent per kilowatt-hour can get a temporary green label, or if annual emissions don’t exceed an average of 550 kilograms per kilowatt-hour over 20 years
- Such plants would have to obtain construction permits by 2030, and have plans to switch to renewable or low-carbon gases by end-2035
- Nuclear is eligible if new plants that are granted construction permits by 2045 avoid significant harm to the environment and water resources
- Funds need to enhance disclosures to investors on nuclear and gas holdings under the taxonomy
