Wednesday

6th Dec 2023

Austria sues EU commission over labelling gas and nuclear 'green'

  • Austrian environment minister Leonore Gewessler: 'There must be no greenwashing programme for investments in nuclear power and fossil gas' (Photo: European Union)
Listen to article

Austria said on Monday (10 October) that it is seeking help from EU allies in its legal battle against the European Commission for labelling nuclear and gas as 'green' in the EU sustainable investment rules, the so-called EU taxonomy.

It follows its formal legal challenge announced on Friday.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"We're in talks with other EU governments who could join us as supporting parties in the proceedings," Austrian environment minister Leonore Gewessler told a press conference on Monday.

Vienna is looking for support from other member states beyond Luxembourg, which has already voiced its support for a lawsuit.

During last year's COP26, Austria and Luxembourg formed an alliance with Germany, Portugal and Denmark to keep nuclear energy out of the taxonomy — but Spain has also been one of the most vocal opponents, considering neither nuclear nor gas as a sustainable investment.

The taxonomy, controversially presented during New Year's Eve and adopted before the summer, allows certain investments in gas and nuclear under the category of "transitional economic activities".

While designed as a science-based investment tool to steer investment away from companies which falsely claim to be environmentally-sustainable, critics argue the green label for nuclear and gas gives credence to claims of greenwashing, creates confusion in financial markets, and will cause major delays in the transition from fossil fuels.

"There must be no greenwashing programme for investments in nuclear power and fossil gas. It is neither credible, ambitious nor knowledge-based, endangers our future and is more irresponsible," said Gewessler.

The anti-nuclear movement in Austria goes back to the 1970s when a vote in a referendum eventually saw a slim majority rejecting nuclear power in the country.

But Gewessler also said that labelling gas as green was undermining the EU's whole green finance package. "Calling climate-damaging natural gas green is misleading".

Legal loophole?

Austria argued that the inclusion of gas and nuclear clashes with the taxonomy regulation itself and the underlying environmental 'do no harm' principle — but Vienna has also identified procedural problems related to the way the commission adopted this delegated act.

Delegated acts are adopted by the commission to amend or complement EU law, after consulting experts from member states.

However, according to an EU official, the commission has ignored member states' concerns regarding the taxonomy.

Legal action from Vienna follows a lawsuit from a group of civil society organisations, including Greenpeace and ClientEarth, over the classification of gas and nuclear as green investments.

The commission said it has taken note of the legal action but would not comment on the substance of the case.

"The EU's taxonomy is to a very large extent focused on renewable energies. Renewables will continue to be the focus for green investors and the creation of green financial products," a commission spokesperson said.

"We included gas and nuclear … in a limited number of circumstances and under strict conditions … [because] gas and nuclear are recognised as important parts of the transition in several member states".

Opinion

Keeping gas as 'green' in taxonomy vote only helps Russia

Two days before Vladimir Putin launched his illegal war on my home country Ukraine, Russian energy minister Nikolai Shulginov gave an interview addressing the European Commission's taxonomy on sustainable activities — saying he was pleased it kept gas as 'green'.

Magazine

Nuclear and gas in EU taxonomy slammed as 'greenwashing'

The EU's decision to include natural gas and nuclear power as "transitional activities" in its sustainable investments guidelines for green finance continues to generate massive controversy. Critics call it the "biggest greenwash ever."

Analysis

What are the big money debates at COP28 UN climate summit?

The most critical UN climate conference (COP28) ever will run from Thursday to mid-December — with talks on climate commitments and climate finance expected to determine the success of this year's summit.

Latest News

  1. EU nears deal to fingerprint six year-old asylum seekers
  2. Orbán's Ukraine-veto threat escalates ahead of EU summit
  3. Can Green Deal survive the 2024 European election?
  4. Protecting workers' rights throughout the AI revolution
  5. Russia, the West, and the geopolitical 'touch-move rule'
  6. Afghanistan is a 'forever emergency,' says UN head
  7. EU public procurement reform 'ineffective', find auditors
  8. COP28 warned over-relying on carbon capture costs €27 trillion

Stakeholders' Highlights

  1. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  2. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  3. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  4. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  5. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  6. UNOPSFostering health system resilience in fragile and conflict-affected countries

Stakeholders' Highlights

  1. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  2. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  3. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  4. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  5. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  6. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations

Join EUobserver

Support quality EU news

Join us