‘Moment of truth’: EU’s ‘green’ gas and nuclear investment rules head for final vote.
A European Union plan to label investments in natural gas and nuclear power plants as climate-friendly will be put to a final vote on Wednesday (6 July) when lawmakers decide whether to accept or reject proposals that have divided governments and investors.
The vote is the final hurdle in the EU’s long-delayed decision on whether to add the two energy sources to its “taxonomy”, a rulebook determining which investments can be marketed in Europe as sustainable.
Designed to guide private capital towards truly green projects, the rules aim to set a European standard for sustainable investment and stamp out greenwashing.
EU officials expect a tight vote. A total of 353 lawmakers – just over half of the 705 in the full parliament – would need to reject the EU rules. Voting must be done in person, so the handful of lawmakers off sick with COVID-19 has further tightened the ballot.
The parliament will vote at midday.
But the debate has grown into a broader political standoff over which fuels Europe should invest in to fight climate change. Opponents say natural gas, a fossil fuel that produces carbon dioxide when burned, should not be labelled “green.” Backers say gas is cleaner than other fuels like coal and Europe must use it while transitioning to renewable energy sources.
The invasion of Ukraine by Russia, Europe’s top gas supplier, has sharpened that debate.
Supporters say the proposal would aid infrastructure to import more non-Russian gas. Critics point out the rules cover power plants, but not the liquefied natural gas (LNG) terminals that would facilitate extra imports.
Divided Parliament
A debate in the Parliament on Tuesday, ahead of Wednesday’s vote, laid bare those divisions.
Socialist lawmaker Simona Bonafe, an opponent of the proposal, said it would mislead citizens and investors by labelling gas as climate-friendly.
“It labels as green something that isn’t green,” she said.
Linea Sogaard-Lidell of the centrist Renew political group is another opponent of the rules. “We cannot let this happen, otherwise we will be tied to fossil energy long after we should have phased it out,” she said.
Her party, however, is broadly supportive of the proposal to include gas and nuclear in the taxonomy. “We understand that gas and nuclear are essential in the transition to the climate- neutral economy we want to see by 2050,” a party source told EURACTIV.
European People’s Party lawmaker Christian Ehler, a supporter, said the rules reflected Europe’s pathway towards renewable energy.
“Welcome to reality. We know that for a transitional time we need gas and nuclear,” he said.
EPP lawmaker Pernille Weiss, also a supporter, warned that failure to incentivise gas and nuclear investments would “tie down the European Union to coal and oil” and make it harder to cut planet-warming emissions.
Nuclear-reliant France has strongly supported the proposal, alongside pro-gas states like Poland. Opponents include anti-nuclear Germany, and those such as Denmark that say it is not credible to label CO2-emitting gas as climate-friendly.
Bas Eickhout, a Green lawmaker from the Netherlands, said the proposal was designed essentially to support the French nuclear industry. “This is a pure political game by France. The criteria are written by France for France,” he said.
The controversial Taxonomy is on the ropes – now it's time to deliver the knockout blowThe European Parliament must stop the proposal to include gas and nuclear power in the EU’s sustainable finance taxonomy, especially after the war in Ukraine and the need to phase out Russian gas, writes a group of MEP’s.
Parliament’s largest political group weighs into the debateOfficials expect a tight vote but latest indications show the proposal has more chances of passing than being rejected.
On Tuesday evening, the Parliament’s largest political group, the centre-right European People’s Party (EPP), held an internal consultation on whether to support the proposal or not. 107 of them indicated that they plan to vote in favour of the inclusion of nuclear and gas in the taxonomy tomorrow, with 31 against and 7 abstentions. There are 176 MEPs affiliated to the EPP.
Rejection would be a blow to the European Commission, which has spent more than a year redrafting the rules amid lobbying from governments and the gas and nuclear industries.
EU financial services commissioner Mairead McGuinness on Tuesday defended the proposal, which she said imposed strict criteria on gas and nuclear projects seeking the green investment label.
“To quote one of the many commentators on our debate today, this is a moment of truth,” she told the EU assembly. “And the first and most important truth that I want to convey to you…is that the climate delegated act now in legislation since January 1st of this year, prioritises investments in renewable energy and energy efficiency.”
“And given the urgency of moving away from Russian fossil fuels, we need to ramp up those investments with a renewed sense of urgency,” she said, urging MEPs to back the proposal.“There is no obligation on any private investor to invest in nuclear or gas,” she added.
Critics, including the Commission’s advisers, have said gas plants would need to meet far tougher emissions limits than those in the Commission proposal to align with the steep CO2 cuts needed to avert severe climate change.
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