EU Court Upholds Controversial Classification of Nuclear and Gas as Sustainable Investments
The EU’s General Court has upheld the European Commission’s decision to label nuclear and gas-fired power as sustainable investments, dismissing a lawsuit brought by Austria, reports 24brussels.
In 2022, under pressure primarily from France and Germany, the EU executive included these energy sources in its sustainable finance taxonomy, which lists approved green technologies. Austria contested this classification in the EU court in Luxembourg later that same year.
On Wednesday, the court rejected Austria’s case, stating that “The Commission was entitled to take the view that nuclear energy generation has near to zero greenhouse gas emissions.” Furthermore, it noted that alternative low-carbon energy sources were not available at sufficient scale.
Leonore Gewessler, who spearheaded the lawsuit during her tenure as Austria’s environment minister, commented, “If this assessment holds true, then it destroys a fundamental principle. What is labelled green is no longer green inside.”
Austria retains the option to appeal to the EU Court of Justice, the highest court in the EU.
Criticism of the decision has emanated from several quarters, including German MEP Markus Ferber from the European People’s Party (EPP), who remarked, “The decision to include gas and nuclear energy in the taxonomy never had a solid scientific basis. It is regrettable that the ECJ did not find the strength to correct such an obvious misjudgement.”
This ruling adds to the ongoing debate over the EU’s energy policy and its implications for sustainability and climate change efforts, highlighting the conflicts between member states regarding the future of energy generation in Europe.
