Division in the EU Means Green Investment Rules Won’t be Ready This Year
- December 21, 2021
- Posted by: Quatro Strategies
- Category: Legislation
The European Commission is planning to reach a decision next year if it includes gas and nuclear energy as climate friendly investments. The Commission considers whether to put gas and nuclear in its “sustainable finance taxonomy”, the guideline that will rule which investments to be labeled as climate-friendly.
Before publishing the taxonomy, the Commission will have to share it with members, financial advisors, industry and civil society. The consultation process is expected to start before the end of the year, which means the proposal will not be published this year.
The Commission was planning to finalize the taxonomy’s climate section this year but disputes among member states did not make it possible. The major point of disagreement is whether gas and nuclear should be included as climate-friendly investments.
The proposed rules could still be blocked by members or European Parliament once they are published.
The EU members are divided on both gas and nuclear. Proponents of gas say they need it during the phase-out period of coal, but opponents say including a fossil fuel as climate friendly would undermine credibility of the climate change rules.
Nuclear energy is similarly divisive. France, Czech Republic and Poland believe nuclear’s low carbon emission makes it crucial for green transition. Germany, Luxembourg and Austria oppose, particularly due to concerns about radioactive waste.
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