The European Union unveiled an extremely controversial plan to label some gas and nuclear energy plants as sustainable and as “green energy,” in a move that has greatly divided its member states.
The European Commission said Wednesday that the two types of energy could classify as “sustainable investment” if they were to meet certain targets. The move is extremely controversial and has aggressively divided the European Union.
The European Commission has been trying for more than a year to settle whether nuclear energy and gas energy can be labeled as green within the existing tax rulebook of the European Union. Technical amendments were announced to its draft criteria to qualify for a “green” label, and the latest plan proposed the strengthening of disclosure rules in an effort to procure more transparency for investors.
However, the latest changes made failed to squash growing concerns that the plan is completely greenwashing black energy, and is ultimately diverting money away from real green energy and renewables. Environmental activists, European leaders, and investors have called for the plan to be ripped up.
National governments now must scrutinize the measures. But those who oppose it may sadly find it hard to block it. European Union law mandates that a rejection requires at least 20 of the member states. The proposal has underscored divisions between member states as well as political parties.
An advisory group consulted by the European Commission, the Platform on Sustainable Finance, slammed the draft criteria. The group said that the plan will undermine Europe’s target of net-zero emissions by 2050.
Under the European Union’s Green Deal, the bloc aims to reach climate neutrality and calls for sweeping overhauls. But due to recent energy crises, more emphasis has been placed on the challenge of cutting dependence on fossil fuels. It may derail plans for Europe to go greener.
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