As environmental groups take EU to court over labeling gas and nuclear as ‘green’ investments, the debate over what constitutes a green investment is intensifying. Their main target is to overturn the EU’s rules of classification. The controversy is happening over a list of investments that can be marketed as sustainable in Europe.
The list, called ‘taxonomy’, is meant to guide investors toward projects that support the EU’s climate change goals. However, the groups are unhappy that the EU decided to include some gas and nuclear plants on the list.
Citing the CO2 emissions from gas-fired power plants, it claims that the EU has broken its climate laws and warns that the regulations run the danger of deterring investment in renewable energy.
This decision caused controversy and was delayed due to disagreement from governments over whether the fuels are truly environmentally friendly.
On Tuesday, four campaign groups including ClientEarth and WWF filed a lawsuit to overturn the EU’s rules on gas and tweeted the same. The dispute has significant implications for the future of sustainable finance, as the EU seeks to channel billions of euros into environmentally-friendly projects as part of its ambitious goal to become carbon neutral by 2050.
— WWF EU (@WWFEU) April 18, 2023
The EU’s decision to include gas and nuclear energy in its taxonomy of sustainable investments has been controversial, with critics arguing that it undermines efforts to transition to renewable energy sources and could lead to a ‘greenwashing’ of polluting industries.
The outcome of the legal challenge will be closely watched by investors, policymakers, and environmentalists alike, as it will shape the future of sustainable finance in the EU and beyond.
As environmental groups take EU to court over labeling gas and nuclear as ‘green’ investments, they want the EU to review the legislation. Their goal is to have the Commission reconsider its decision and potentially change the rules.
Source: The European Green Deal