Members of the European Parliament on Tuesday rejected a proposal by the European Commission to treat nuclear energy and natural gas as sustainable economic activities. If the vote is confirmed by absolute majority in the July 7 plenary meeting, the Commission’s proposal to update the EU taxonomy for sustainable activities will be sent back to the drawing board.
In a joint meeting of the parliament’s economic and environment committees, MEPs agreed to object to the Commission’s proposal to include specific nuclear and gas energy activities in the list of environmentally sustainable economic activities covered by the so-called EU Taxonomy, with 76 votes in favour and 62 votes against. Four MEPs abstained.
Luxembourg’s energy minister Claude Turmes, himself a former MEP for the Green party, welcomed the vote. “We need to stop the Russian gas power games and move to renewable, domestic fuels,” he said on Twitter. Those in favour cited the United Nation’s IPCC report which notes that nuclear energy is necessary as a transition fuel if decarbonisation goals are to be achieved.
MEPs recognised the role of nuclear and fossil gas in guaranteeing stable energy supply during the transition to a sustainable economy. However they consider that the technical screening standards proposed by the Commission to support their inclusion do not respect the criteria for environmentally sustainable economic activities, the parliament said.
Revised proposal subject to impact assessment
The resolution adopted by MEPs also requests that any new or amended delegated acts should be subject to a public consultation and impact assessments, as they could have significant economic, environmental and social impacts.
EU Member states continue to be free to decide on their energy mix and investors may continue to invest as they wish, as there is no obligation on investors to invest solely in economic activities that meet specific criteria.
The Taxonomy regulation is part of the Commission’s action plan on financing sustainable growth and aims to boost green investments and prevent ‘greenwashing’. The complementary Taxonomy Delegated Act, presented by the Commission in March, proposed the inclusion, under certain conditions, of specific nuclear and gas energy activities in the list of environmentally sustainable economic activities covered by the EU taxonomy.
The proposal classifies gas and nuclear energy activities as “transitional activities” contributing to climate change mitigation. The inclusion of gas and nuclear activities would be time-limited and dependent on specific conditions and transparency requirements.
Strasbourg vote in July
The resolution now is scheduled for a vote during Parliament’s plenary session of 4-7 July 2022 in Strasbourg. The Parliament and the Council, which brings together the governments of the EU member states, have until 11 July 2022 to decide whether to veto the Commission’s proposal. If an absolute majority of MEPs - 353 - objects to the Commission’s proposal, the Commission will have to withdraw or amend it.