A European Union court ruled Wednesday that nuclear energy and natural gas can be classified as environmentally sustainable investments, potentially directing billions of euros toward projects that environmental groups say are not truly “green.”
The General Court at the European Court of Justice dismissed Austria’s challenge to the European Commission’s decision to include gas and nuclear power in the EU’s taxonomy for sustainable economic activities. The classification system helps guide investment toward projects aimed at reducing greenhouse gas emissions.
Austria had sued the commission over the 2022 regulation that designated certain nuclear and gas projects as transitional investments to accelerate progress toward climate neutrality by 2050.
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The court found that the commission “was entitled to take the view that nuclear energy generation has near to zero greenhouse gas emissions and that there are currently no technologically and economically feasible low-carbon alternatives at a sufficient scale,” according to the ruling.
The decision affects hundreds of billions of euros in green investments across Europe as companies increasingly use the classification system to plan sustainable projects.
Nuclear power produces no direct emissions but faces criticism over radioactive waste storage and accident risks. Natural gas emits about 58% as much carbon dioxide as coal but still contributes to global warming.
Environmental groups condemned the ruling. “This ruling sends a disastrous signal to the entire EU,” said Leonore Gewessler, parliamentary leader of the Austrian Greens. “If this decision stands, it undermines a fundamental principle: where it says green, it is no longer truly green.”
The Brussels-based nuclear industry association welcomed the decision, saying it will encourage private investment in nuclear projects.
The EU aims to become climate-neutral by 2050, requiring massive reductions in greenhouse gas emissions while maintaining energy security.
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