Gas and nuclear power are included in the list even though they are not renewable energy sources. They were included as a compromise following protests from the likes of Germany (which uses natural gas as a transition fuel following the closure of its nuclear power stations) and France (where 70% of electricity is still generated by nuclear power). Without these compromises, the proposal for the green taxonomy would not have been adopted at all.
The taxonomy would give a ‘green label’ to energy sources, signalling to investors that investments in these technologies are sustainable. Member States still decide for themselves which energy sources they use, but would like their preferred energy sources to be considered sustainable, as this would make it easier to attract private investment.
MEPs are divided on the issue. The Member States Austria and Luxembourg have announced that they will go to the European courts to undo the inclusion of natural gas and nuclear energy in the green taxonomy. The European Investment Bank previously indicated it would ignore the taxonomy’s green labels.
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