The European Union’s top court has upheld the European Commission’s decision to label investments in nuclear power and natural gas as “green” or sustainable.
This ruling supports the EU’s stance that both energy sources can play a role in the transition to a net-zero carbon future, despite concerns over safety and environmental impact. The Court of Justice of the European Union (CJEU) found that nuclear energy generation has near-zero greenhouse gas emissions and that there are currently no technologically and economically feasible low-carbon alternatives at a sufficient scale to cover energy demand in a continuous and reliable manner.
For natural gas, the court ruled that gas projects replacing coal and emitting no more than 270g of CO₂ equivalent per kWh can get a temporary green label, or if annual emissions don’t exceed an average of 550kg per kWh over 20 years. This decision has sparked controversy, with critics arguing that it may hinder the rapid transition to renewable energy. Austrian Climate Minister Norbert Totschnig described the court’s decision as “very regrettable,” reflecting Austria’s long-standing opposition to nuclear power.
The ruling has significant implications for the future of energy investments in the EU, potentially channeling billions into gas and nuclear instead of renewable energy sources. Environmental groups like Greenpeace and ClientEarth have also challenged the European Commission’s definition of natural gas and nuclear as “green” energy sources, citing environmental concerns. The decision’s impact on the EU’s climate goals and the future of renewable energy investments remains to be seen.
