The EU seeks formulas to qualify as “green” natural gas and nuclear power plants

The European Union has drawn up plans to label some natural gas and nuclear projects as “green” investments after a year-long battle between governments over which investments are truly climate-friendly.

The European Commission is expected to propose rules this January to decide whether gas and nuclear projects are included in the EU’s “sustainable finance taxonomy.”

It is a list of economic activities and the environmental criteria that must be met to be labeled as green investments. By restricting the “green” label to truly climate-related projects, the system aims to make those investments more attractive to private capital and stop “greenwashing,” where companies or investors exaggerate their green credentials.

Brussels has also taken steps to apply the taxonomy to some EU funds, meaning rules could decide which projects are eligible for certain public funds.

A draft of the Commission’s proposal, seen by Reuters, would label investments in nuclear power plants as green if the project has a plan, funding and a site to safely dispose of radioactive waste. To be considered green, new nuclear plants must receive building permits by 2045.

A natural gas plant equipped to burn low-carbon gases would be considered eco-friendly

Investments in natural gas power plants would also be considered green if they produce emissions below 270g of _CO2 equivalent per kilowatt hour (kWh), replace a more polluting fossil fuel plant, and receive a building permit by December 31, 2030. Such plants must meet other conditions, including the fact that they are technically equipped to burn low-carbon gases.

Nuclear and gas power generation would be labeled green because they are “transitional” activities, defined as those that are not completely sustainable, but have emissions below the industry average and do not block polluting assets during the shift to clean energy. The European Commission could not immediately be reached for comment.

EU countries and a panel of expert advisers will look into the draft proposal, which could change before it is published later in January. Once published, the proposal could be vetoed by most EU countries or the European Parliament.

Politics has been embroiled in lobbying by governments for more than a year and EU countries disagree on which fuels are actually sustainable.

Natural gas emits about half of coal’s _CO2 emissions when burned in power plants, but gas infrastructure is also associated with leaks of methane, a potent planet-warming gas.

EU expert advisers had recommended that gas plants not be labelled as green investments unless they meet a lower emissions limit of 100g CO_2e/kWh, based on deep emissions cuts that scientists say are necessary to avoid disastrous climate change.

Nuclear power produces very low _CO2 emissions, but the Commission sought expert advice this year on whether the fuel should be considered green given the potential environmental impact of radioactive waste disposal.

Some environmental activists criticized the proposal leaked Saturday. WWF Austria said in a tweet that labeling gas and nuclear power as green would lead to “billions in investments in climate-damaging industries.”

Austria opposes nuclear power, along with countries like Germany and Luxembourg. EU states, including the Czech Republic, Finland and France, which get around 70% of their energy from fuel, consider nuclear power crucial to phase out energy from _CO2-emitting coal fuel.

Brussels ended rules last year for parts of the green list that include sectors such as construction and transport and, as of this month, investments not included in the taxonomy cannot be marketed as climate-friendly in the EU. The gas and nuclear power rules will come into force later.

Source: The Vanguard