Head to head
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FEBRUARY 2022
Nuclear and gas in the EU taxonomy The EU Commission recently published a complementary climate delegated act that adds nuclear and gas activities to its taxonomy. The latter will guide investors in their sustainable choices.
Anne Calteux is head of the EU Commission representation in Luxembourg
How does the proposal align with existing EU regulations? ANNE CALTEUX The proposal is in line with the Green Deal and the commission’s aim: the EU must engage in a transition to achieve its [emission] goals. Achieving these has a high cost--it’s estimated at €360bn a year up to 2030. Public investments won’t allow us to get there unless they are complemented by massive private investments. The taxonomy--increasing transparency in financial markets for private sector sustainable investments--seeks to encourage companies to launch and upgrade projects, and to meet these criteria. Also, I want to underline that it considers the European reality, which is that member states have a very different energy mix. We need to pick up member states where they are. MERIS SEHOVIC Yes, but can these be called green investments? The governments of Luxembourg and Austria have already questioned the commission’s decision. Financial actors, like EIB president Werner Hoyer, have too. It’s a question of credibility. The initial goal of the taxonomy was to provide the reference for what is a green investment in Europe. If we include gas and
nuclear, there is a risk of undermining the credibility of the whole framework. But also, whether or not we’ll be able to channel those huge investments that Anne mentioned--€360bn a year--into the right direction. Every euro spent on nuclear, every euro spent on gas is a euro missing for renewable energy. AC The aim of the taxonomy is not to present gas or nuclear energy as green or as climate-neutral activities. The aim is to present them as transitional activities. Its aim is to define what is compatible with the Paris agreement in terms of sustainable finance. It’s a financial services tool. EU commissioner for the internal market Thierry Breton said that the energy demand in Europe is growing and that nuclear is the path to follow. How are we going to meet this demand over the long term? MS First, I’d like to question the transitional nature of this [act]. The commission wants to invest in the renewal of old nuclear plants up until 2040 and the construction of new nuclear power plants until 2045. A nuclear reactor has an average lifetime of 40 years, so we’re talking about channelling investments into nuclear until the end of the century.
“ It’s about ensuring maximum transparency, and thus avoiding greenwashing”
