EU taxonomy descends into farce
Labelling gas as ‘green’ is proving divisive and utterly pointless
The European Commission wants to include natural gas in the EU taxonomy for sustainable investment, but under impossibly stringent conditions that stand little chance of being met. This is shaping up to be a spectacular double own goal for Brussels that triggers energy ‘culture wars’ while delivering no discernible benefit to anybody.
At a high level, the taxonomy is struggling to reconcile what is desirable with what is necessary. A 100% renewable future is the goal, but getting there means leaning on gas (and nuclear) for some time. How to square that circle? Create a loophole! It’s sure to please
The taxonomy will define those energy projects officially deemed “sustainable”, and direct investments towards them. A leaked draft seen by Energy Flux creates a new category for “transitional” activities, so long as they adhere to strict greenhouse gas (GHG) emissions limits.
Gas-fired power stations will qualify if they meet one of two criteria: