European Parliament Includes Nuclear Power and Natural Gas in 'Taxonomy' (Comprehensive)

Scheduled to Be Included in the EU Taxonomy Regulation Book from 2023

European Parliament (Photo by EPA Yonhap News)

[Asia Economy Reporter Geum Bo-ryeong] On the 6th (local time), the European Parliament decided to include nuclear power and natural gas in the green taxonomy.

According to AFP and other sources, the European Parliament voted on including gas and nuclear power in the green investment criteria taxonomy, resulting in 328 votes in favor, 278 against, and 33 abstentions.

Through this, natural gas and nuclear power generation will be included in the EU taxonomy regulations starting in 2023, and investments in these will be classified as green. With this approval, the EU has opened the way to legislate this regulation if 20 out of the 27 member states do not oppose it.

The taxonomy is a system that indicates whether an economic activity can be classified as environmentally and climate-friendly green by meeting environmental standards. It contains the criteria and conditions for what constitutes investments aligned with the EU's climate and environmental goals. Companies, investors, and policymakers can refer to it when conducting investment activities. The EU also plans to apply the taxonomy to public funding support.

After Russia's invasion of Ukraine, there was growing opposition in the European Parliament to the regulation proposed by the EU Commission. Critics argued that increasing gas investments would raise Europe's dependence on Russian energy, ultimately benefiting Russia. However, the opposition failed to secure a majority of votes against the regulation.

France, which relies on nuclear power, and Poland, which depends on coal, have expressed support for this regulation. Austria and Luxembourg have stated they would sue the EU if this regulation is legislated.

Denmark and other member states expressed concerns that classifying gas, which emits carbon, as green could undermine trust in the EU's commitment to combating climate change.