It’s official: gas And nuclear are included in the Green Taxonomythe classification of assets which, under certain conditions, can be considered ‘green‘and, therefore, financeable. A hard core of countries opposed it, so much so that it could pay off the vote is necessary, which is not the rule in these cases. But after a series of meetings in the last few hours, that front was divided between votes against (three) and abstentions. Thus, “a large majority” within the European Commission adopted the second delegated act, which sets out the details of the classification system. As anticipated, with a few changes that do not change the substance. Compared to the draft of last December 31st, the changes concern the removal (requested by the Germany) of the intermediate targets for the gradual replacement of the fossil gas with renewable gases or low-carbon and the part on transparency for investors, to be informed if financial products are in any way linked to gas and nuclear power. A need underlined by the Sustainable Finance Platform.
The split in the EU Commission – In fact, behind that “large majority” there is one split within the EU executive. Just think that the Dutch Labor Frans TimmermansVice-President of the Commission with delegation to Green Deal, did not participate in the conference presenting the act. The executive vice president did Valdis Dombrovskis and the Commissioner for Financial Services Mairead Mc Guinness, both of the EPP. On the other hand Timmermans was among the major opponents of the inclusion of nuclear power in the Taxonomy, together with the commissioners Johannes Hahn (Austria), Nicolas Schmit (Luxembourg), Margrethe Vestager (Denmark), Virginijus Sinkevičius (Lithuania), Elisa Ferreira (Portugal) e Josep Borell (Spain). In the end, someone abstained, while the commissioners of Austria, Portugal And Spain. “Including gas and nuclear is a historical error, which undermines the credibility of the Green Deal. It is responsibility and it is the legacy of Ursula Von der LeyenI’m sorry to have to say this, ”commented the vice-president of the Environment Committee Bas Eickhout (Verdi / Ale, Holland), while Steffen Hebestreitthe spokesman for the German Chancellor Olaf Scholzexplained that the position of the German government “that is contrary to classify nuclear energy as eco-sustainable, it has not changed “.
Commissioner Mairead Mc Guinness: “Imperfect instrument” – “The delegated act on gas and nuclear in the EU green taxonomy can be Imperfectbut it’s a real solution that pushes us further towards our ultimate goal of neutrality of carbon, ”he explained Mairead Mc Guinnessassuring that “the College of Commissioners approved it, expressing overwhelming support” and underlining that “the taxonomy is independent, it is a tool that financial markets can use or not to their liking “. And again: “The Member States are fully responsible the decision of your energy mix and the taxonomy it does not require investments in certain sectors “. Between the lines of the text the reasons that led most of the European countries to consent to adoption, others to resign. Some driven by nuclear interests (see France), but many guided more than anything else from those on gas. Blocking atomic energy, in this context, would also have meant blocking gas projects. The French president understood this right from the start Emmanuel Macronwhich he insisted on to tie (and postpone) the two decisions to this second delegated act.
Gas plants – In fact, in the first delegated act on Taxonomy (approved last December) a limit at CO2 emissions for energy activities of 100 grams CO2e / kWh (considering direct and indirect emissions), suspending the decision on gas and nuclear power. In the draft dated 31 December of the second act, the Commission has made it clear that new projects for gas plants will have to be approved by December 31, 2030, but also provided for several ‘alternatives’ with respect to the limit of 100 grams CO2e / kWh. A difficult threshold to meet, without the use of CO2 capture and storage technologies. So already in the draft it was foreseen (and it is confirmed) that they will come consider ‘green’ even gas-fired power plants with an emissions limit of 270 grams of CO2 equivalent per kWh, but calculating only those direct and excluding, instead, those that occur during the entire life cycle and losses. The plants that emit under the 550 kilograms of CO2 equivalents per kW of installed power, on average, over the next 20 years. In practice, too polluting plants they will work, as long as they come used less. The Commission, in this regard, has rejected the request ofItaly to bring the CO2 / kWh emission threshold to 340 gramsor allow to maintain an annual average of 750 kilograms of Co2 / kWh calculated over twenty years. A first change concerns the possibility, already foreseen, that a new plant receives the ‘green dot‘if you replace a more polluting one, by reducing the 55% the emission rate per kWh of output. In the final document, that 55% is maintained, but calculating it over the entire life span of the plant.
What changes compared to the draft of San Silvestro – But there was (and is) also another alternative allowed in the draft of 31 December: that of the gradual replacement of fossil gas, as the power plant’s fuel, with another low-carbon fuel, such as biogas or hydrogen. The previous draft provided for intermediate steps: the plants should have used at least the 30% of renewable or low-carbon gases starting from January 1, 2026, to then increase this share at least 55% starting from January 1, 2030 and fully switch to renewable or low-emission gas by December 31, 2035. Only the latter objective is confirmed in the final version of the document, in which they are disappeared the intermediate steps. The Commission has also put hand to the disclosure obligations (o disclosure) strengthening the regime and introducing disclosure models that companies can use to show the compatibility of their activities with the taxonomy. They were then introduced, verification requirements by independent auditors to ensure control of what the companies affirm to obtain the ‘green sticker’. However, the Commission will be able to review every three years the transitional categories of sustainable activities, as Commissioner Mairead Mc Guinness reiterated at a press conference, also answering questions on nuclear power.
The nuclear node – The delegated act gives the green light to completed projects by 2045 for which you prove that you have a disposal plant of waste operational by 2050 and on condition that the highest are respected safety standards, imposed by international treaties. Rejected the request to bring forward the obligation, set at 2025, to use heat resistant fuels (uranium And plutonium) in case of accidents. On the question of slag “We want to underline – explained Mairead McGuinness – that there is a revision clause, because this is a living document: every three years we will have to examine the criteria when we talk about the best available technology which is likely to evolve over time when it comes to waste “.
Reactions from MEPs – The word now goes to Parliament And EU Council. “In the European Parliament we are ready to to fight and, if necessary, to discourage the President of the European Commission Ursula Von de Leyen“, Announces the MEP from the Greens, Ignazio Corraoremembering that it was the Green Deal presented in 2019 which obtained the confidence to the von der Leyen commission. “Classifying as sustainable investments those in the gas and nuclear sector means ridicule the Green Deal with a shameful operation of greenwashing – comments the MEP Eleonora Evinational co-spokesperson for Green Europe – and seriously endanger the credibility of the European Union as a leading market for sustainable finance, by sending a wrong signal And confused to investors and allowing new investments in fossil fuels until 2030, with devastating consequences on the objectives of Paris Agreements and despite the fact that IEA and IPCC reiterate the need to stop investing in fossil fuels “. The 5 Star Movement has already announced that it will oppose the delegated act in the competent offices “because it is a step back in the inexorable path of Europe towards a sustainable transition based on renewable and clean energies and on the energy saving of buildings “, explain the MEPs Fabio Massimo Castaldo And Laura Ferrara.
