The European green taxonomy, what is it and why is it important?

The European Union protects the environment with initiatives such as the European Green Deal or the commitment to carbon neutrality. Doing so is a priority. Among the objectives: that all countries row in the same direction to curb climate change.

What is the European green taxonomy?

The so-called “European green taxonomy” is a way for investors and companies to differentiate which projects affect (negatively) the climate and the environment. To this end, the Commission has promoted a new taxonomy or classification based on recommendations from experts and scientists. In this text, among other things, sources such as natural gas and nuclear energy have been included temporarily and under very strict conditions as a bridge to a future in which renewable energies predominate.

Why are natural gas and nuclear power so relevant?

Energy production and use in the EU is responsible for 75% of the EU’s total greenhouse gas emissions. Faced with this situation, it is necessary to rethink all alternative energy sources and this is where natural gas and nuclear energy play their role.

Following thorough expert assessments, the Commission will temporarily grant a green energy transition label to gas projects that replace coal and emit no more than 270 grams of carbon dioxide. In the case of nuclear energy, in order for it to be classified as sustainable, it is necessary that nuclear power plants have received their construction permit before the year 2045 and have a clear and detailed plan on how their waste will be disposed of.

Thanks to natural gas and nuclear energy, investors and companies will be able to opt for a stable source of energy supply. However, it should be noted that these are two transitional energy sources that are essential to achieve a renewable energy model. In addition, they will help reduce _C02 emissions drastically. The European Union’s main plan is to boost the development of other renewable sources – such as hydrogen or marine energy – in order to reach the commitment to zero greenhouse gas emissions by 2050.

Source: European Commission