Spain, Germany and Austria refuse to consider nuclear energy and gas ‘green’

Spain, Germany and Austria have rejected the proposal put forward this weekend by the European Commission to declare certain nuclear and gas projects as “green investment” to the point that they would file a complaint if the draft goes ahead.

The draft submitted proposes giving the “green” rating to projects that replace coal and emit up to 270 grams of CO ₂ per kWh. With this qualification, building licenses could be obtained until 2030, provided there is a plan to switch to renewable or low-emission energy before the end of 2035.

Spain yesterday reiterated its rejection of the proposal because it would mean “a step backwards” and “an erroneous signal” for the financial markets, according to the third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, and Efe collects: “Regardless of whether investments can continue to be made in one or the other, we consider that they are not green or sustainable energies.”

According to Ribera, Spain “is a firm defender of the green taxonomy as a key instrument to have common references that can be used by investors to achieve the decarbonisation of the economy and achieve climate neutrality in 2050”, but admitting nuclear and natural gas as his part “would be a step backwards”. In his opinion, “it makes no sense and sends the wrong signals for the energy transition of the EU as a whole”.

A “time-limited” transition role

Spain admits that both nuclear energy and natural gas have a role in the transition, but “limited in time”, so they should be treated separately and not as green, where there are other key energies for decarbonization and without risk or harm environment, explained the ministry in a statement.

According to the regulatory framework set forth in the European Green Pact, the green taxonomy regulation is intended to guide national and international companies and investors in their decarbonization plans, identifying environmentally sustainable activities and economic sectors that contribute to the reduction of CO2 , methane and other gases that cause climate change.

It also aims to help channel these investments towards those essential sectors to achieve the goal of climate neutrality in 2050.

Spain considers that in order to meet these objectives, the taxonomy must be “credible, useful and based on scientific evidence”. The key to considering an economic activity, sector or technology ‘green’ is its ‘substantial contribution’ to the main environmental goals of the EU, he adds, such as mitigating climate change, among others, while also respecting the principle of not causing significant environmental damage .

Methane and waste collide with the plan

Methane emissions from natural gas generation and the issue of nuclear power waste call into question the inclusion of both technologies within the EU’s green taxonomy, according to the source.

Including both “supposes an erroneous signal for the financial markets and does not provide the necessary clarity to focus capital flows towards the decarbonized, resilient and sustainable economy envisaged in the European green pact,” the ministry insisted.

Source: The Economist