MEPs back controversial EU plan to label nuclear and gas investments as ‘green’

MEPs on Wednesday backed a controversial plan to label certain nuclear and gas investments as sustainable.

The objection raised by two key parliamentary committees in mid-June to not label the two power sources as green as part of the upcoming taxonomy was rejected by 328 MEPs, with 278 in favour, and 33 abstentions.

Shouts of “traitors” and jeers could be heard in the plenary room in Strasbourg when the result of the vote was revealed.

The taxonomy is a planned EU classification to give the financial sector clarity on which economic activities can be considered sustainable that has been in the works for years.

But in February, the European Commission unveiled a controversial Delegated Act to label nuclear and gas as sustainable, caving to pressure from France and Berlin, which are currently respectively dependent on nuclear and gas. 

Opponents, including environmental NGOs, however, argued that this could lead to billions of euros being invested in these two energy powers rather than in renewables or other green technologies.

Russia’s war in Ukraine increased the opposition to the Commission’s proposal as it fuelled a power crunch and boosted inflation to skyrocketing levels. It also prompted the 27-country bloc to impose an embargo on Russian seaborne oil imports  — to come into force at the end of the year — and to pledge to slash Russian gas imports by two-thirds.

Including nuclear and gas in the taxonomy, opponents then stressed, would result in plenty of funds being channelled to the Kremlin when the EU and Western countries have been trying to cripple Russia’s economy and ability to wage war. 

But it was already rejected by two key parliamentary committees in mid-June which argued that although both power sources will be necessary to guarantee stable energy supply during the transition to a sustainable economy.