New rules undermine EU efforts to set a gold standard for sustainable investments, opponents say.
EU lawmakers on Wednesday voted
to approve a European Commission proposal to include natural gas and
nuclear energy in the bloc's list of sustainable investments — a
contentious plan that attracted fierce lobbying from industry, NGOs and
governments.
But if MEPs' approval is a legislative win for Brussels, it sets up
new headaches: angry investors and a potential flurry of lawsuits.
The EU's green investment rules are meant to help channel private cash toward projects that can achieve the European Green Deal goal of net-zero emissions by 2050, which will require some €260 billion each year on top of EU funding for the first decade, according to Commission estimates.
Brussels has repeatedly come under fire
for the proposal to include gas and nuclear in its list of sustainable
investments — from scientists, sustainable investor groups and the
Commission's own finance advisers, who argue the rules will instead
divert money from truly green projects to prop up legacy industries and allow emissions to rise further.
A total of 328 MEPs supported the proposal, with 278 objections and 33 abstentions. Another 66 MEPs failed to show up. The proposal builds on the so-called Taxonomy Regulation defining sustainable economic activities, which passed in 2020. An initial list of green labels approved last year did not include gas or nuclear.
Not long after whoops and cheers from supporting MEPs filled the
plenary chamber in Strasbourg, Greenpeace and legal nonprofit
ClimateEarth announced they would take legal action, saying "the inclusion of fossil gas ... clashes with the EU’s key climate legislation."
Austria and Luxembourg also announced they plan to sue the Commission, with a group of EU lawmakers
including Paul Tang, who leads negotiations on the EU Green Bond
Standard, and Sirpa Pietikäinen, who led talks on the original Taxonomy
Regulation, also mulling legal action.
Investors were also quick to react, warning that the EU's inclusion
of gas and nuclear invalidates its pitch as the gold standard for green
investment.
Financial Services Commissioner Mairead McGuinness defended
the legislation, saying it "reflects a pragmatic approach so private
investments in gas and nuclear, where needed for our energy transition,
meet strict criteria."...
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