After a year-long tussle over what can be labelled as green, the EU has drawn up plans to identify some natural gas and nuclear energy projects as green.
The European Commission in January, is expected to propose rules deciding whether gas and nuclear power are to be in the EU taxonomy for sustainable activities. It is a list that contains the criteria for green investment.
The reason for the list is to limit the green label only towards truly environmentally friendly projects. It aims to attract more private investment investments in this sector and stop greenwashing.
They have also started to apply this system for some EU funding, which will decide which are eligible for certain public finance.
According to the new draft by the Commission, nuclear power plants will be labelled as green if it has a plan, fund and a site for safe disposal of nuclear waste. It should also receive construction permits before 2045.
Similarly, in the case of natural gas, it will be given a green label, if it produces emissions below 270g of CO2 equivalent per kWh. It should replace polluting fossil fuel-powered plants and receive permits by Dec. 31 2030.
It should also have a plan to switch to low-carbon gases by 2035 end.
These two would be categorized as green because they are transitional. They are defined as not fully sustainable, but emit below industry average and do not lock in polluting assets.
In a statement released by the European Commission, the decision was taken based on scientific advice, technological progress and transitional challenges member states face. They consider these two can help transition into a renewable-based future.
They also added that the investments on these would face strict conditions. They said that these not-exactly green solutions are needed for transitioning, especially in a condition where there are no uniform backgrounds for transition.
The draft will be scrutinised by the panel of EU countries and a panel of experts, which will face changes before its publication in January. If it did, it could be vetoed by the majority of EU countries.
The reason is that the proposal is mired in lobbying from governments for more than a year. Member states disagree on which fuels are to be considered truly sustainable. Natural gas produces roughly half of the CO2 when coal is burned in power plants.
At the same time, nuclear power causes low emissions but its radioactive waste is a threat to the environment, which deters many from giving it a green label.
In a time where oil is considered a sin stock, it is a challenge for these industries to get a green label.
That is why many environmentalists and Green EU lawmakers criticize this plan, saying that this would jeopardise the credibility of the EU as a leading marketplace for sustainable finance.
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