INTERNATIONAL: Investments in some gas and nuclear power plants would be labelled as sustainable under rules proposed by European Commission on Wednesday ,February 2, a plan that has split countries and investors, and which some lawmakers will attempt to block.
Brussels has taken more than a year to decide if gas and nuclear energy should count as green investments in the European Union's taxonomy, an investor rulebook designed to help raise massive amounts of private capital to meet EU climate change targets.
In final rules published on Wednesday, gas power plants would be labelled green this decade if they emit less than 270g of CO2 equivalent per kilowatt, or have annual emissions below 550kg CO2e per kilowatt over 20 years.
The European Commissioner in charge of Financial Services, Mairead Mcguiness has said, they are setting out how gas and nuclear that could make a contribution in the difficult transition to climate neutrality. They are putting in place strict conditions for their inclusion in the taxonomy. They are subject to clear limits and phase-out periods so, on nuclear, the delegated act - if you like - rewards improvement and advanced technology in safety standards and waste management. When it comes to gas, there are strict conditions including limits on emissions and that facilities must replace high emitting plants as well as being compatible with low carbon fuels.
She has also mentioned that It is a sign post towards the private investment market on our road towards sustainability and we know we need to move away from particularly harmful energy sources like coal, which today still accounts for 15 percent of electricity production in Europe and this is something we need to change.
Mcguiness has further said that the commission has consulted the Platform on Sustainable Finance ,an advisory body to the EU Commission, European Union member states and of course the European Parliament on this delegated act. She has said that its fair to say that the overall feedback they have received has showed that positions are widely divided. In all institutions, there are different views. However she believes that they have found a balance between fundamentally different opinions in supporting the road to decarbonisation.
Under the proposal, gas plants must switch to run on low-carbon gases by 2035, while new nuclear plants must receive construction permits before 2045 and be located in a country with a plan to safely dispose of radioactive waste by 2050.
A former vice-president of the EU Parliament, McGuinness has described the set of rules as "a sign post towards the private investment market on our road towards sustainability" that will discourage investment in "harmful energy sources like coal."
"There is no "Get out of Jail" like in Monopoly board game card here for nuclear or gas. We're saying very clearly that these are instruments in transition to allow us get to where we need to be, which is more and more renewables," the Irish commissioner has added.
The rules, which arrive as Europe grapples with surging energy prices and concerns about its reliance on imported Russian gas amid political tensions over Ukraine, have faced opposition on multiple fronts, including from campaigners, the EU's expert advisers, some investors and countries. That debate reflects broader divisions among governments over the path to meet the EU's goal of net zero emissions by 2050.
McGuinness has also said the new rules, to which the European Parliament and Council can still object in a delay of four months, was the right compromise.
Earlier in the day, members of campaign group Avaaz has staged an action outside EU Commission to protest the proposal, which they said would "channel billions of euros away from renewable energies and towards dirty climate projects."
PHOTO: EUROPEAN COMMISSIONER IN CHARGE OF FINANCIAL SERVICES MAIREAD MCGUINNESS UNVEILING NEW PROPOSAL TO ALLOW SOME GAS AND NUCLEAR POWER PLANTS TO BE LABELLED AS GREEN INVESTMENTS / PROTESTERS STAGING ACTION OUTSIDE THE COMMISSION / FILE ON NUCLEAR AND GAS ENERGY
