EU plans to delay decision of green label for gas projects
The European Union is set to delay a decision on whether natural gas power plants should be labelled as "green" as tensions rise over the role natural gas and nuclear energy play in the energy transition.
On April 21, the bloc is set to draft plans detailing a long list of criteria that energy methods must meet in order to be considered green as part of the first phase of its "sustainable finance taxonomy," potentially unlocking billions in funding for sustainable projects.
Read more: How industrial innovation can drive the European Green Deal
The plan will set out to provide these rules to almost every aspect of the EU's economy, including a number of high-risk sectors such as steel and iron, to energy infrastructure.
Among the most heated topics on the matter is the plan to classify natural gas - which is traditionally labelled a fossil fuel - as a form of green energy. However, potential investors will not have a clear view regarding the status of natural gas and nuclear until the end of the year, Bloomberg reports.
Voters are split on whether considering natural gas a green source counts as "greenwashing" - a premise which attempts to cover up the potential environmental impacts of a concept, potentially categorising it as more environmentally viable than it actually is - whereas others are convinced the use of natural gas is essential in transitioning away from coal, which is far more polluting.
Read more: "Greenwashing" on the rise, EU looks to clamp down
The Commission is planning to continue to delay the decision after several drafts fell through.
Europe has set itself the goal of becoming the first continent to reach the net-zero goal by 2050 under the European Green Deal. This has become a major part of Brussels' policymaking in recent years, with every aspect of the EU infrastructure facing overhauls in order to meet the Deal's targets.
This has required the creation of a classification system in place to judge each sector on its viability which generally comes under the mantle of "taxonomy," a highly complicated and often bureaucratic method that officials claim is essential in the bloc meeting its climate goals.
Reuters reports the EU is planning on putting a separate proposal forward in the fourth quarter to judge how different projects and generators affect or contribute to the ongoing decarbonisation efforts.
A draft document claims the EU aims to create an atmosphere for "transparent debate" for the role of gas-cutting emissions, which will also delve into the topic of nuclear energy, which is still a highly contentious topic across the globe.
The commission's regulation arm was also criticised for the initial approval of gas-fired plants earlier this year - a topic it has since strayed away from.
The taxonomy claims to make sustainable projects more visible to investors and generate capital to help the EU achieve its climate goals.
However, the EU's climate goals still require significant investment in order to be achieved.
Read more: EU's 2030 climate goals still require significant investments
Gas produces less carbon dioxide than coal but is responsible for the production of methane, a more potent and heavier greenhouse gas.
80 member states, including Greece, Poland and Czechia joined to defend the use of natural gas in the EU's green transition.
They have also called for the relaxing of sustainability criteria for future green projects.
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