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EU lawmaker panels object to ‘green’ label for gas, nuclear investments
Global Banking & Finance Review®
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By Kate Abnett
BRUSSELS (Reuters) -Two European Parliament committees on Tuesday backed an attempt to stop the EU labelling gas and nuclear energy as climate-friendly investments, setting the stage for a full parliament vote on whether to reject the rules next month.
Parliament’s environment and economic committees supported a resolution which attempts to block a plan by the European Commission to include gas and nuclear in the European Union’s taxonomy – a labelling system for “sustainable” investments designed to steer private capital towards those that support climate change targets.
EU countries and lawmakers are split over whether the fuels are green enough to earn that label – reflecting broader disagreements over how Europe should meet climate goals – and could yet reject the EU proposal.
The full European Parliament will vote on the resolution in early July. Support from at least half of its 705 lawmakers would block the gas and nuclear rules.
The resolution says gas and nuclear cannot be considered sustainable based on existing EU laws, and labelling them as green would confuse investors. It passed with 76 votes in favour and 62 against on Tuesday.
“We are already short of cash and need every euro for solar and wind power,” said German Green lawmaker Michael Bloss, who supported the resolution.
Environment committee chair Pascal Canfin was among those to oppose it, pointing to the proposed rules, which deem gas and nuclear climate-friendly with the caveat that they are “transitional activities” that cannot yet be made fully green.
“This delegated act is therefore ultimately in line with the reality of the options available to move towards carbon neutrality,” said Canfin, a French lawmaker.
The invasion of Ukraine by top gas supplier Russia has heightened divisions about reliance on gas. Eastern European countries have said gas investments are needed to replace more-polluting coal, while others say labelling CO2-emitting gas as sustainable undermines efforts to curb climate change.
Meanwhile, pro-nuclear states including France view the CO2-free energy source as crucial to meet climate targets, while opponents like Germany cite concerns over waste disposal.
(Reporting by Kate Abnett; Editing by Susan Fenton and Bernadette Baum)
Sustainability refers to the ability to meet current needs without compromising the ability of future generations to meet their own needs, particularly in the context of environmental conservation and responsible resource management.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU, including policies related to climate and energy.
Climate change refers to significant changes in global temperatures and weather patterns over time, primarily driven by human activities such as burning fossil fuels, deforestation, and industrial processes.
Investment portfolios are collections of financial assets, such as stocks, bonds, and real estate, held by an individual or institution to achieve specific financial goals, including growth and income generation.
Energy technologies encompass a range of methods and systems used to produce, store, and utilize energy, including renewable sources like solar and wind power, as well as traditional sources like gas and nuclear energy.
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