The EU ‘sustainable finance’ Taxonomy is a guide to investment in energy sources and technologies judged by the EU to be “sustainable” as part of the energy transition, and the EU’s commitment to achieving net zero emissions.

Having an energy source as part of the EU Taxonomy is seen as a key to future investment of billions of Euros in approved industries and technologies, and has been the subject of intensive pressure by sector lobbyists.

On 31 December 2021 the European Commission announced significant and controversial plans for a draft Delegated Act under the Taxonomy Regulation, to include natural gas and nuclear as “transition” fuels under the EU Taxonomy plans. The Commission argued that when subject to strict conditions – planned lower gas emissions per KW generated, and planned safe disposal of nuclear waste – these fuels could help the transition from coal.

The German government, now including senior ministers from the Green party, immediately declared its opposition to the proposals. Germany, Austria and Luxembourg continue to oppose nuclear power on the grounds of concern over nuclear accidents and radioactive waste. Other EU member states including France, Poland and the Czech Republic see nuclear as an essential transition technology.

The draft Delegated Act will now be scrutinised and debated within the EU Council of Ministers and the EU Parliament, where the arguments are expected to continue.