EU taxonomy wrangling exposes uneven starting points in Europe's ‘net zero’ journey

Sustainable investment guide has become a flashpoint in rows over the role of natural gas in EU’s energy transition

The EU Commission has pulled off a spectacular fudge by updating its draft taxonomy on sustainable investment but delaying a decision on whether natural gas and nuclear will be deemed ‘sustainable’ investments. The friction underscores how far apart different member states are in their journey towards ‘net zero’.

The updated legislation says a separate “future delegated act” will establish whether, how and when natural gas can be included in the taxonomy. An assessment of whether nuclear is “climate-neutral energy” is ongoing.

The natural gas industry seems to be making headway in arguing its case to Commissioners. The updated draft waves a big fig leaf to gas:

“In order to acknowledge the role of natural gas as an important technology in reducing greenhouse gas emissions, the Commission will consider a specific legislation to ensure that activities contributing to emissions reductions would not be deprived of appropriate financing.”

However, it goes on to state that “transitional” invest…