A preliminary EU document suggests labeling some nuclear and natural gas energy facilities as environmentally friendly. A leaked draft from the European Commission, obtained by Archyde.com, indicates that nuclear power plant funding could qualify as sustainable under the EU taxonomy, provided radioactive waste disposal is guaranteed. New nuclear plants would need authorization before 2045 to achieve this designation. Natural gas power plants may be granted “transition technology” status if carbon dioxide emissions stay under specified limits, replace dirtier energy sources, and secure approval before January 1st, 2031.
The Commission offered no statement on Saturday. German Federal Environment Minister Steffi Lemke voiced strong disapproval of the nuclear power plan, calling it fundamentally flawed. She reportedly stated to the Funke media group that energy production capable of catastrophic environmental damage – such as through major reactor incidents – and leaving behind substantial quantities of hazardous, highly radioactive waste, cannot be deemed sustainable.
The EU intends to unveil its taxonomy in January — a directory of eco-friendly investment standards that identifies sustainable and safe technologies to channel investment toward greener solutions.
The EU’s Proposed Taxonomy Shift: A Controversial Green Light for Nuclear and Gas
A leaked European Commission document proposes a significant shift in the EU’s green taxonomy, potentially labeling some nuclear and natural gas projects as environmentally sustainable.
For nuclear power, the proposal suggests qualifying funding as sustainable, contingent on guaranteed radioactive waste disposal and plant authorization before 2045. This designation, however, faces fierce opposition. German Environment Minister Steffi Lemke criticized the plan, highlighting the inherent risks of catastrophic environmental damage and the significant hazardous waste produced by nuclear energy. She argues such factors preclude classifying nuclear energy as sustainable. [[2]] The potential impact on the broader sustainable finance landscape is considerable, potentially requiring revisions to Sustainable Finance Disclosure Regulation (SFDR) reporting as warned by Eurosif. [[2]]
Natural gas power plants could also receive “transition technology” status under the proposal, subject to stringent conditions. These include maintaining carbon dioxide emissions below specific limits, replacing dirtier energy sources, and securing approval before January 1st, 2031. This part of the proposal also raises concerns about the accuracy and limitations of the methodology used to assess sustainability, highlighting potential data gaps and discrepancies in the Green Asset Ratio (GAR). [[1]] The EU taxonomy aims to guide investments towards environmentally sound solutions; however, the inclusion of nuclear and natural gas, even with caveats, is sparking significant debate about the definition of sustainability itself. The final version of the taxonomy, due in January, will be crucial in shaping Europe’s approach to climate finance and the broader transition towards a low-carbon economy. [[3]]
