The EU Parliament has until July to decide whether to object to the second Delegated Act of the EU Taxonomy* which proposes to label certain gas and nuclear energy plants as green and sustainable energy sources under the EU Taxonomy framework. With this petition, we strongly urge all Members of the EU Parliament to oppose the adoption of this Delegated Act. Put differently, this petition wants to convince the Members of the EU Parliament that while nuclear and gas will be needed as transitional energy sources until a certain point, labelling nuclear and gas as contributing to climate change mitigation as proposed by the Delegated Act, leads to more money flowing into these energy sources, which needs to be avoided.  

We believe that labeling gas and nuclear as sustainable will result in more greenwashing in the energy sector, which absolutely needs to be prevented if the EU wants to achieve the Paris Climate Agreement and their own declared climate targets. The Delegated Act in its current form is a legal as well as technical contradiction to the EU’s declared mandate as we explain in this petition. But most importantly, it takes-away credibility from the entire already-existing EU Taxonomy framework and puts biodiversity, human safety and equal opportunity for today’s and future generations at danger. 

If , like us, you believe that nuclear and gas energy plants shouldn’t be labelled as neither green nor  “significantly contributing to climate change mitigation”, then we strongly encourage you to read and support this petition. 

version francaise disponible ici: 

Summary

(*if you can’t read the whole thing and are busy enough protecting the planet already)

About the EU Taxonomy 

The EU Taxonomy is a classification system that establishes a list of environmentally sustainable economic activities. The Taxonomy Regulation was first published in the Official Journal of the EU on 22nd June 2020. Its role is to help scale up sustainable investments, support the implementation of the European Green Deal and reach Europe’s 2030 and 2050 climate targets. It provides a distinct framework for determining which economic activities are to be considered environmentally sustainable and eligible for cheaper financing and other EU-specific financial tools (Recovery Funds allocation, green bond, etc.). The Taxonomy aims to create security for investors, to systematically protect from greenwashing, and to support the shift of investments towards distinctly climate-friendly projects. 

The Taxonomy does not ban investments in activities not labelled as "green", but it specifies which activities can claim to be climate-friendly or EU-taxonomy compliant. The EU's goal to eliminate its net emissions by 2050 will require large investment, much of it in the form of private funding. In a nutshell, the Taxonomy aims to make truly green activities more visible and attractive to investors. The Taxonomy Regulation is the first attempt at a harmonized classification system of climate-friendly economic activities worldwide, and, given the current absence of a global gold standard, it is believed to have a unique signalling potential when it comes to setting environmental standards. Put differently, the labelling of certain activities as green will very likely be reflected in the environmental strategies of private and public agents across the EU and beyond. Thus, given the EU Taxonomy’s precursor role in the classification of sustainable activities and broad scope of actions (eligibility for cheaper financing and green bond, Recovery Funds allocation etc.), it is crucial for the EU Taxonomy to flag activities as contributing to climate change mitigation only when appropriate.

 

The Delegated Act 2022-631

Article 10(3) of the original Taxonomy Regulation (see Annex A) empowered the European Commission to adopt delegated acts to establish Technical Screening Criteria (TSC) determining the conditions which qualify a specific economic activity as substantially contributing to climate change mitigation.  The Delegated Act 2022-631 (DA), which is the subject of this petition, introduced the concept of including specific natural gas and nuclear plants under the green label of the Taxonomy if certain requirements are met. However, the Commission's original proposal, which, for example, included low carbon and renewable fuels, published in November 2020, excluded natural gas plants unless they used emissions-capturing technology (which is not available to this day). Commenting on the DA, the European Commission stated that “[the included] criteria for the specific natural gas and nuclear activities are in line with EU climate and environmental objectives and will help to accelerate the shift from solid or liquid fossil fuels, including coal, towards a climate-neutral future”. However, the criteria established in the DA are not in line with climate experts’ recommendations and, most importantly, do not meet the recommendations made by the Platform on Sustainable Finance upon EC consultation.

AIM:

We strongly believe that the EU should put the climate first and make the EU Taxonomy the first multinational framework to set ambitious standards for green investments. Including technologies in the EU Taxonomy and labelling them “green”(substantially contributing to climate change mitigation) should not be the product of political compromise, but the result of factual considerations protecting both the planet and future generations. Thus, with this petition we urge the members of the Parliament to object to the complementary Act, given that part of the proposal strongly endangers adherence to current climate targets, and triggers lock-in effects for Europe’s energy future (a more detailed definition of lock-in effects can be found in paragraph 5.1. of this petition.

We are convinced that not adopting the DA in its current form will have no adverse effects on an economic or social level. On the contrary, objecting to the DA and adopting a new delegated act will strengthen the quality of energy policy and the credibility of the green label and will pave the way for Europe to reach its goal of becoming a socially and economically thriving community, which does not compromise the protection of the planet. 

The price of not objecting to the DA in its current form could be the loss of investors’ trust in the framework, being unable to distinguish contributing activities from activities that are transitional or even harmful. The lack of clear definitions also increases the risk of “green” label abuse by market participants. This unique chance of finally having a gold standard in terms of the definitions of sustainable activities and starting from a high standard, which can be adjusted over time, would be wasted. Additionally, it would represent a missed opportunity for holding accountable those energy producers who are not taking sufficient action towards the energy transition. 

In this context, it is worth reiterating the fact that not including either of these energy sources in the EU Taxonomy will not in any way mean prohibiting any Member State to pursue the energy mix that they deem most appropriate for their situation.

The purpose of this petition is by no means to discredit all points made in this Complementary DA. Under the ordinary legislative procedure, the EU Parliament could negotiate amendments with the Council and the EC. However, in this case, the option of amending the DA is not open to the Parliament. Put differently, if the EU Parliament does not object to the DA in its entirety, all points will come into force, and the critical points set out by this petition will undermine the achievement of the scientifically set EU climate goals. We conclude that, due to the inclusion of described points in the DA, the European Commission is not adhering to the powers conferred to it by the EU legislator through the Taxonomy Regulation. For these reasons, the DA cannot be amended on individual points and the writers and signatories of this petition urge the European Parliament to object to it in its entirety.

Find the full petition (currently under review by the Parliament) below or under the following link.

Please like, share, like if you can, so that this matter gets the attention it deserves before it is voted into parliament in JULY 2022 !!!!!!!! Thank you so much

!!!!!!!!!!!!!!!!!!!!!!!

With the contributions of many wonderful people, this petition was written by 4 young Europeans who strongly believe that it is the absolutely wrong time to give up on climate action and policies and that every small step can help to improve the climate's future and with it the future of humanity and biodiversity. We are super enthusiastic about the EU Taxonomy as a project and the creation of a green sustainanble standard for economic activities that puts an end to fancy words and green washing. But  to achieve that the EU Taxonomy needs to get it right and we don't have time to wait for corrections in the future. Let's rewrite the Delegated Act and make it compliant with the experts recommendations and worst case we tell future generations that we tried everything !!!

 

 

 

 

FULL PETITION

1. Introduction

In a press release from 02/02/2022, the European Commission presented the Complementary Climate Delegated Act 2022-631 ii (the ‘DA’ or the ‘Complementary Act’) which categorized nuclear and natural gas as “green” energy sources under Regulation (EU) 2020/852 of the European Parliament and the Counciliii (the ‘Taxonomy Regulation’). Given that the EU taxonomy and the delegated Acts attached to it should promote climate change mitigation, the inclusion of certain natural gas and nuclear power plants and their labelling as green has sparked criticism from numerous stakeholders.
The following document summarizes selected points of criticism towards the DA and urges the Parliament to reject the proposed extension of the EU Taxonomy. This petition is based on the conviction that including nuclear energy and natural gas as green energy sources in the EU Taxonomy exceeds the legally defined limits of the EU Taxonomy and also hinders the achievement of the EU’s declared climate targets from a technical perspective.

 

2. About the EU Taxonomy

The EU Taxonomy is a classification system that establishes a list of environmentally sustainable economic activities. The Taxonomy Regulation was firstly published in the Official Journal of the EU on 22nd June 2020. Its role is to help scale up sustainable investments, support the implementation of the European Green Deal and reach Europe’s 2030 and 2050 climate targets.
It provides a distinct framework for determining which economic activities are to be considered environmentally sustainable and eligible for cheaper financing and other EU-specific financial tools (Recovery Funds allocation, green bond, etc.). The Taxonomy aims to create security for investors, protection from greenwashing and supports the shift of investments towards distinctly climate-friendly projects.

The Taxonomy does not ban investments in activities not labelled as "green", but it specifies which activities can claim to be climate-friendly or EU-taxonomy compliant. The EU's goal to eliminate its net emissions by 2050 will require huge investment, much of which in the form of private funding. In a nutshell, the Taxonomy aims to make truly green activities more visible and attractive to investors.

The Taxonomy Regulation is the first attempt at a harmonized classification system of climate-friendly economic activities worldwide, and, given the current absence of a global gold standard, it is believed to have a unique signalling potential when it comes to setting environmental standards.
Put differently, the labelling of certain activities as green will very likely be reflected in the environmental strategies of private and public agents across the EU and beyond. Thus, given the EU Taxonomy’s precursor role in the classification of sustainable activities and broad scope of actions (eligibility for cheaper financing and green bond, Recovery Funds allocation etc.), it is crucial for the EU Taxonomy to flag activities as contributing to climate change mitigation only when appropriate.

As described in the OECD’s summary of the EU Taxonomy:

“For an economic activity to be considered Taxonomy-eligible, it must:

1) Contribute substantially to one or more of the environmental objectives […], (namely)

• Climate change mitigation
• Climate change adaptation
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems

2) Do no significant harm to any of the other environmental objectives

3) Comply with minimum social and governance safeguards. Under the Regulation, these are defined as in alignment with the OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights, including the International Labour Organisation’s (‘ILO’) declaration on Fundamental Rights and Principles at Work, the eight ILO core conventions and the International Bill of Human Rights.”iv

4) Comply with so-called “technical screening criteria" (the focus of this petition).

The technical screening criteria (‘TSC’) are essential for labelling activities as substantially contributing to climate change mitigation. In fact, any economic activity (e.g., power generation from natural gas or construction of a nuclear power plant) must comply with the corresponding TSC’s to receive the label of environmentally sustainable for purposes of the Taxonomy Regulation.

The technical criteria for the EU Taxonomy are based on recommendations from expert advisers (the Platform on Sustainable Finance) and are designed to comply with science-based goals to fight climate change. An initial set of technical criteria for activities in a variety of sectors was put forward in April 2021 but spared technical criteria regarding natural gas and nuclear energy.

3. The Delegated Act 2022-631

Article 10(3) of the original Taxonomy Regulation (see Annex A) empowered the European Commission to adopt delegated acts to establish TSC determining the conditions qualifying a specific economic activity as substantially contributing to climate change mitigation.
The Delegated Act 2022-631 (DA), which is the subject of this petition, introduced the concept of including specific natural gas and nuclear plants under the green label of the Taxonomy if certain requirements are met. However, the Commission's original proposal, which, for example, included low carbon and renewable fuels, published in November 2020, excluded natural gas plants unless they used emissions-capturing technology (which is not available to this day).

Commenting on the DA, the European Commission stated that “[the included] criteria for the specific natural gas and nuclear activities are in line with EU climate and environmental objectives and will help to accelerate the shift from solid or liquid fossil fuels, including coal, towards a climate-neutral future”v. However, the criteria established in the DA are not in line with climate experts’ recommendations and, most importantly, do not meet the recommendations made by the Platform on Sustainable Finance upon EC consultation.

The DA in discussion takes a distinct approach in the implementation of the Taxonomy Regulation, with a focus on energy technologies within a transitional energy system. However, the DA does not reach the significant required levels of contribution nations committed to under the Paris Agreement, nor does it comply with the Do Not Significant Harm (‘DNSH’) performance requirements. As a matter of fact, for natural gas technologies, the objective of the DA appears to be transitioning away from coal-fired energy, rather than specifically making a substantial contribution to climate change mitigation. We believe that the ultimate goal and green standard should be eliminating the use of fossil fuels (including natural gas) and not only transitioning away from coal. With respect to nuclear energy, the approach of the Delegated Act is the promotion of energy without CO2 emissions. This approach, on the one hand, showcases progress towards future carbon-neutral solutions, but, on the other hand, lacks the DNSH approach that is contemplated for other energy technologies.

Consequently, the TSC in the DA conflict significantly with other activity criteria in the previously adopted (and already in force) climate delegated act. This conflict arises because the TSC of the DA on nuclear and gas first acknowledge a technology as substantially contributing today but only require the necessary enhancement in environmental performance and the proof of the latter in the future (beyond 2030).

Second, the drafting of the TSC also accounted for non-environmental criteria, considering issues related to energy systems, such as the possible levels of energy supply and the availability of input fuels. An example of this would be considering natural gas power plants as contributing to climate change mitigation because they are needed to guarantee energy supply when renewable energy plants cannot satisfy the energy demand, which is clearly not a valid basis for their classification as “green assets”.

4. The objective of this petition

The public debate about including the specified nuclear and natural gas plants in the Taxonomy has sparked outrage from EU countries for different reasons, arguably closely linked to national energy mix agendas of individual Member States. Nevertheless, regardless of national energy policy interests and financing needs, the EU should put the climate first and make the EU Taxonomy the first multinational framework to set ambitious standards for green investments and, most importantly, it should not allow any “greenwashing” activities.

The DA is a complex document that bundles together TSC for natural gas and nuclear energy sources as well as additional reporting requirements. It establishes criteria under which certain natural gas and nuclear plants can be categorised as “green” investments.

The purpose of this petition is by no means to discredit all points made in this Complementary DA. Under the ordinary legislative procedure, the EU Parliament could negotiate amendments with the Council and the EC. However, in this case, the option of amending the DA is not open to the Parliament. Put differently, if the EU Parliament does not object to the DA in its entirety, all points will come into force, and the critical points pointed out by this petition will undermine the achievement of the scientifically set EU climate goals.

According to Article 23(6) of the Taxonomy Regulation (see Annex C), the DA shall enter into force if the European Parliament or the Council do not object within a period of four months from its notification to them. This means that the European Parliament will cast its vote on the presented DA before July 2022. The Parliament can extend the period for objection by two additional months if it deems this necessary.

Including technologies in the EU Taxonomy and labelling them “green”(substantially contributing to climate change mitigation) should not be the product of political compromise, but the result of factual considerations protecting both the planet and future generations. Thus, with this petition we urge the members of the Parliament to object to the complementary Act, given that part of the proposal strongly endangers adherence to current climate targets, and triggers lock-in effects for Europe’s energy future (a more detailed definition of lock-in effects can be found in paragraph 5.1.2).

5. Why the Technical Screening Criteria for including natural gas (and nuclear) in the EU Taxonomy pose a problem

Although Article 10(3) (see Annex A) of the Taxonomy Regulation enables the European Commission to include further specifications to the original Regulation through delegated acts, DA 2022-631 is clearly not in line with the original declared objectives of the EU Taxonomy. Put differently, the European Commission has exceeded its power in adding more detail to the Regulation by watering down the initial purpose of the EU Taxonomy and its criteria for environmentally contributing economic activities. The specifications provided in the Delegated Act exceed the originally adopted Taxonomy on (but not limited to) the points presented in the following paragraphs.

5.1 Natural gas

While natural gas is essential for our energy supply at this stage and has a role to play in the transition to a climate-neutral EU at the latest by 2050, a definition of the conditions for its inclusion in transitional activities that is too broad,- risks fatally undermining the Taxonomy’s goal of climate change mitigation.
The TSC regarding emission threshold outlaid in the DA for natural gas plants read as follows: “The activity meets either of the following criteria: a) the life-cycle GHG emissions from the generation of electricity using fossil gaseous fuels are lower than 100 g CO2e/kWh. Life-cycle GHG emissions are calculated based on project-specific data, where available, using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018. Quantified life-cycle GHG emissions are verified by an independent third party. Where facilities incorporate any form of abatement, including carbon capture or use of renewable or low-carbon gases, that abatement activity complies with the criteria set out in the relevant Section of this Annex, where applicable. Where the CO2 that would otherwise be emitted from the electricity generation process is captured for the purpose of underground storage, the CO2 is transported and stored underground, in accordance with the technical screening criteria set out in Sections 5.11 and 5.12 of this Annex. b) facilities for which the construction permit is granted by 31 December 2030 comply with all of the following: (i) direct GHG emissions of the activity are lower than 270g CO2e/kWh of the output energy, or annual direct GHG emissions of the activity do not exceed an average of 550kgCO2e/kW of the facility’s capacity over 20 years; […] ”vi
The full TSC for natural gas plants proposed in the DA are quoted in Annex D.

5.1.1 CO2e threshold to significantly contribute to climate change mitigation

The Complementary DA sets the direct emission threshold for natural gas-powered plants to make a significant contribution to climate change mitigation at 270gCO2/kWh. This is strikingly higher than the average target emissions for aggregated electricity generation recommended by the EU Technical Expert Group on Sustainable Finance.The Technical Expert Group on Sustainable Finance, which was first appointed by the Commission itself in 2018 to assist in the development of an EU Taxonomy, has publicly declaredvii the following regarding an emission threshold for energy production:
1) The 100 gCO2/kWh life-cycle threshold ensures the EU will meet its Paris Agreement commitments. European average emissions from the power sector are currently around 270 gCO2/kWh. To reach net- zero by 2050, they will have to follow a rapidly declining pathway from current levels.
2) Any power plant operating below the 100 gCO2/kWh threshold is consistent with this pathway and makes a substantial contribution to the EU meeting its Paris commitments.
3) Any plant operating above 270gCO2/kWh increases average EU emissions from current levels and risks harming the Paris Agreement. Energy assets that cannot meet this operating threshold face retirement earlier than their expected operating life, creating a risk of asset stranding.
The DA sets the CO2e threshold for natural gas plants to pass as sustainable energy plants at 270 gCO2/kWh, while the scientific recommendation to meet the environmental targets is to have life-cycle emissions at 100 gCO2/kWhviii. In other words, the DA is promoting the construction of energy plants, which will hinder the decrease in carbon footprint of European energy production below 270gCO2/kWh. Currently, the average energy emission intensity for all combined energy sources in Europe is already at 230.7gCO2e/kWhix.

In conclusion, we need energy sources significantly below the average to further decrease the footprint of our energy mix. Europe needs energy sources that emit below the 100 gCO2/kWh threshold to lower emissions, not greenwashing energy plants that emit almost three times the Expert group’s own target.

5.1.2 Average CO2e threshold throughout the life of the plant

In addition, the fact that the DA grants a second option for highly polluting natural gas-fired power plants to be Taxonomy compliant further adds to the diluting effect of the DA. Under this second option, natural gas plants which on average emit below 550kgCO2e/kW annually, over a period of 20 years are considered taxonomy compliant. In other words, under this second option, natural gas plants can receive green financing based on assumptions which reach as far as 20 years into the future, without any tangible guarantees at the moment of construction approval/decision making that the footprint will improve in the future based on technological bets.

5.1.3 Lack of a life-cycle approach

The failure to adhere to a comprehensive ‘life cycle approach’ as mandated in Taxonomy Regulation Article 19(1) (see Annex B), means that the sizable ‘hidden’ greenhouse gas emissions caused by the transport of natural gas (also known as leakage) are ignored. Indeed, these are not accounted for in the calculation of the threshold for natural gas plants’ eligibility.

5.1.4 Attractiveness of renewable energy

The DA weakens the competitiveness of renewable energies by making investments in natural gas attractive in the eyes of investors who could potentially have invested in renewable energy sources. In order to reach the declared environmental goals of the EU and to reduce GHG emissions by 55% by 2030, the European Commission has set specific targets for the renewable energy share to be 41% by 2030, and reaching this goal requires the installation of 30GWh in Renewable energy capacity every year. The achievement of this goal could be put at risk if renewables lose their competitive advantage due to transitional energy resources being labelled as equally contributing to climate protection.
Furthermore, the required commitments for the gradual integration of renewable or low-carbon gases in the natural gas grid will prove fruitless if such renewable/low-carbon fuels are insufficiently available. The possibility of this shortage is only worsened by the imposed deadline of 31 December 2030 for the granting of construction permits for such plants (Annex I of the DA), as this may spur excessive investments based on short-term incentives. As a result, these investments could jeopardize Europe's efforts to transition away from fossil fuels, or else the built has plants could become stranded assets due to insufficient availability of low-carbon fuel alternatives. As mentioned by the report from the EU Platform on Sustainable Finance, a clear definition of low-carbon fuels which renders natural gas plants eligible under the Taxonomy, is currently missing. A lack of clarity that further increases the risk of greenwashing natural gas plants as well as creating stranded assets.

5.1.5 Lock-in risk

The DA also raises concerns regarding so-called “carbon-lock-ins”, which, as described in Article 10(2) (see Annex A) of the Taxonomy Regulation need to be avoided. In the context of natural gas plants, one can speak of carbon lock-ins as the relatively high initial establishment cost (compared to lower economic operating costs) of natural gas plants incentivizes operators to use the plants for a long time. In other words, even if natural gas plants are labelled as not environmentally contributing technologies in the future, the fact that they have already been established at a high economic cost could lead to the decision to continue their operation despite the environmental costs. Thus, once a natural gas plant is approved, its emissions are potentially locked-in for the following 25-30 years. Furthermore, the DA allows the construction of fossil-based energy infrastructure under the condition that it becomes less carbon-intensive in the future, i.e., counting on the future viability of technologies not used today, such as carbon capture and storage. It is evident that this dependency on future technological innovation creates a potential carbon-lock if these technologies will not become economically viable and natural gas plants continue to operate with the same environmental footprint as at approval stage. It is effectively a temporal repositioning of responsibilities counting on unavailable technologies. These forward-looking assumptions for potentially less GHG-intensive natural gas plants can neither be validated nor be relied on at the present since they depend on too many uncertain factors including technological innovation, investments, and available infrastructure. By taking this risk, the DA clearly acts against the Taxonomy’s principle of avoiding stranded assets as laid out in Article 19 (see Annex B). At this point in time, establishing natural gas plants that meet the requirements described in the DA would come without any certainty that these investments would be usable for their entire lifespan. They would indeed only be approved under the conditionality of technological change which cannot be guaranteed. Put differently gas plants that are approved today, and which will not meet these requirements in the next decade, will become unused/stranded assets.

5.1.6 Replacing high emitting plants

Clause (iv) under point b) of the TSC defined in the DA (see Annex D) states that natural gas plants which do not emit 15% more than the facility they replace are taxonomy compliant. The ability of
Taxonomy-compliant natural gas plants to exceed the output of the replaced high emitting plants at a rate of 115% means this DA does not limit but enlarges the European reliance on fossil fuels.

5.1.7 Dependency on external resources

Finally, allowing natural gas power plants to be part of the EU Taxonomy will contribute to maintaining the EU’s dependency on natural resources coming from outside the Union, therefore threatening the EU’s energy autonomy, which could become a major issue in the mid-term (Ukraine conflict , etc.).

5.1.8 Our suggestion

Considering the limitations of the DA with respect to substantial contribution to climate change mitigation, while acknowledging the role of natural gas to transition from coal-fired electricity generation, we believe that an intermediate performance criterion (i.e. a “yellow” category), between the 100g – 270g CO2e/kWh threshold, could be pertinent to accelerate investments and improve emissions performance, but only as part of an extended Taxonomy beyond the classification of “green assets”. These intermediate performance criteria would include the currently most efficient natural gas power plants (below 270g CO2e/kWh), creating a clear distinction between “true green assets” (below the 100g CO2e/kWh threshold), and the cleanest available natural gas power plants (below the 270g CO2e/kWh  electricity generation, it is imperative to differentiate them neither should be their eligibility for dedicated financing underthe EU Taxonomy.

 

5.2 Nuclear
While this petition focuses mostly on the inclusion of natural gas in the Taxonomy, we nonetheless believe that it is worth questioning criteria related to nuclear power generation and their relevance with respect to climate change mitigation:

5.2.1 A matter of timing

The purpose of the TSC is to provide a substantial contribution to the EU’s 2030 and 2050 climate goals, consistently with the climate neutrality objective. The criteria, however, allow the Taxonomy-alignment of new nuclear plants that have received a building permit by 2045, even though they would become operational too late to contribute to climate change mitigation to limit warming below 1.5 degrees. Therefore, the construction of a new nuclear plant would bind capital to a future facility for many years without any requirement for the plant to become operational within a timeframe in which it couldsubstantially contribute to the 2050 climate goals.

5.2.2 Can we call nuclear “transitional”?

While we do not in principle oppose nuclear power, it is evident that it cannot be regarded as a “transitional activity” within the scope of Article 10(2) Taxonomy Regulation (see Annex A). This provision only applies to carbon-intensive activities for which there is currently no low-carbon alternative. If one considers nuclear power a low-carbon activity, it hence cannot be regarded as a transitional activity from the outset.
Including nuclear energy under this paragraph would go against the legislative act that conferred the delegated power in the first place, the Taxonomy Regulation. It would also create a dangerous precedent whereby the European Commission goes beyond its delegation and decides alone on a controversial issue.

Conclusion

We strongly believe that the EU should put the climate first and make the EU Taxonomy the first multinational framework to set ambitious standards for green investments. Therefore, the authors and signatories of this petition urge the members of the Parliament to take action by objecting the DA.
In this context, it is worth reiterating the fact that not including either of these energy sources in the EU Taxonomy will not in any way mean prohibiting any Member State to pursue the energy mix that they deem most appropriate for their situation.

Further, the signatories of this petition recognise the complexity of the discussed issue, as reaching climate targets cannot be considered in an isolated manner, by solely focussing on environmental impact. Policy proposals must equally account for the social and transitional costs of providing economic incentives for the energy market.

However, we are convinced that not adopting the DA in its current form will have no adverse effects on an economic or social level. On the contrary amending the DA and voting upon a new Delegated Act will strengthen the quality of energy policy and the credibility of the green label and will pave the way for Europe to reach its goal of becoming a socially and economically thriving community, which does not compromise the protection of the planet.

The price of not objecting to the DAt in its current form could be the loss of investors’ trust in the framework, being unable to distinguish contributing activities from activities that are transitional or even harmful. The lack of clear definitions also increases the risk of “green” label abuse by market participants. This unique chance of finally having a gold standard in terms of the definitions of sustainable activities and starting from a high standard, which can be adjusted over time, would be wasted. Additionally, it would represent a missed opportunity for holding accountable those energy producers who are not taking sufficient action towards the energy transition.

Given the procedural circumstances, the DA should only be allowed to enter into force if the Members of the EU Parliament - representing Europe’s hopes and future - can agree with all points in the draft. As outlined in this petition, several points in this act pose a serious threat to reaching climate targets and are not aligned with the aim of the EU Taxonomy.
We conclude that, due to the inclusion of described points in the DA, the European Commission is not adhering to the powers conferred to it by the EU legislator in relation to the Taxonomy Regulation. For these reasons, the DA cannot be amended on individual points and the writers and signatories of this petition urge the European Parliament to object to it in its entirety.

You can read the full petition (which is currently under review of the European commission) here: Full petition including Annexes 

 

 

Endnotes

i Q&A: EU Taxonomy Complementary Climate Delegated Act (europa.eu)
ii The European Commission Delegated Regulation amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities. Delegated-act-2022-631.
iii Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13)
iv OECD (2020), OECD iLibrary: The European Union, accessed under: sustainable finance taxonomy | Developing Sustainable Finance Definitions and Taxonomies | OECD iLibrary (oecd-ilibrary.org) on 01/05/2022.
v EU Taxonomy for sustainable activities | European Commission (europa.eu)
vi The European Commission Delegated Regulation amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities. Delegated-act-2022-631.
vii EU Platform on Sustainable Finance response to complementary Delegated Act (europa.eu)
viii EU TEG 100g EXPLANATION CLIMATE BONDS INITIATIVE (2021) - EUTaxonomy_100g_7points.pdf (ecostandard.org)
ix European Environment Agency - Greenhouse gas emission intensity of electricity generation in Europe