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The European Union (EU) has drawn up plans to classify some natural gas and nuclear projects as “green” investments, following a year-long controversy between governments over environmentally friendly investments.
The European Commission is expected to propose in January the rules that will determine whether gas and nuclear programs will be included in the EU’s “Fiscal Classification”.
This list includes the environmental criteria you need to meet to classify as economic activities and green investments.
By limiting the “green” rating to truly eco-friendly projects, the organization aims to make these investments more attractive to private capital.
The EU is also taking steps to apply this system to certain funds it provides, meaning that the rules may determine which programs are eligible for a particular public fund.
The commission’s draft proposal, as seen by Reuters, revealed that nuclear power plant investments would be classified as green if there was a plan for the project and a site for safe disposal of radioactive waste. New nuclear projects require construction permits before 2045 to be classified as green.
As for investing in natural gas power plants, it would be classified as green if it produced an emissions equivalent to 270 grams of carbon dioxide per kilowatt-hour and converted the plant into a fossil fuel that pollutes the environment. Obtains building permits before December 31, 2030.
“The Commission sees the role of natural gas and nuclear energy as a means of facilitating transition towards the future based primarily on renewable energy, taking into account current scientific advice and technological advances and the various challenges of transformation across member states.” The European Commission said in a statement that consultations on a draft began on Friday.
To help transition to countries with different backgrounds, a commission source told Reuters, “In some situations solutions may not seem completely ‘green’ at first glance.”
The official added that gas and nuclear investments would be subject to “strict conditions”.
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