Gas makes it into EU sustainability list
The European Commission (EC) has followed through with its intention to list investments in both natural gas and nuclear activities as sustainable under the EU's taxonomy classification, it said on February 2.
The EC has presented the Taxonomy Complementary Climate Delegation Act that covers the changes to the EU's taxonomy, designed to guide investors on what activities should be considered sustainable. This follows the commission's proposal to include gas and nuclear at the start of January. The proposed changes will be debated by the European Parliament and EU member states before being finalised.
Explaining its position, the EC stressed the need for private investment for the EU to deliver on its net zero by 2050 goal, noting that "all possible solutions" would be needed.
"Taking account of scientific advice and current technological progress, the commission considers that there is a role for private investment in gas and nuclear activities in the transition," the commission said. "The gas and nuclear activities selected are in line with the EU's climate and environmental objectives and will allow us to accelerate the shift from more polluting activities, such as coal generation, towards a climate-neutral future, mostly based on renewable energy sources."
The inclusion of gas comes with significant caveats, however. To count as a sustainable investment, a gas-fired power plant should either produce 100 g of CO2/kWh in lifecycle emissions or less or meet a number of other stringent requirements by 2030. This extra gas-fired power should replace dirtier sources such as coal, and the capacity of a given gas plant should not exceed that of a coal plant set to be retired by more than 15%
"Facilities have to integrate a rapid conversion towards renewables with a clear commitment for a full switch to renewables by 2035," the EC said.
The International Association of Oil & Gas Producers (IOGP) said it welcomed the inclusion of gas, but expressed concern about "extremely demanding technical screening criteria which would exclude some of the most efficient gas-related activities to support necessary emissions reductions."
The strict criteria could leave EU countries struggling to find a cleaner baseload replacement to coal-burning power generation, relying more on rising intermittent renewables supply which would pose a risk to energy security.