Lawmakers cry foul over energy labels

Members of the European Parliament are on course for a confrontation with the European Commission over the designation of nuclear power and natural gas under green investment regulations.

The commission last week unveiled a long-delayed proposal to designate the energy sources as "sustainable".

But the proposal has angered climate activists and could still be blocked by European lawmakers, who are also deeply divided over the issue.

In 2020, MEPs approved a framework for the classifications in a bid to make progress toward climate neutrality and provide private sector investors with clear ethical guidelines.

A statement from the European Union at the time heralded the proposals, known as the European Green Deal, as a way to move toward its emissions target, adding that "Europe needs about 260 billion euros ($297 billion) in extra investment every year over the next decade".

This, it said, would need private investment. "This requires clear criteria on what exactly is sustainable and eco-friendly; otherwise, some funding might be directed to 'greenwashing' projects that claim to be green, but in reality are not," the statement continued.

Divisive opinions

But the issue of what fits into the category has been divisive, with countries that are heavy users of nuclear or gas putting pressure on the commission to ensure that the legislation wording does not work against them. MEPs are unhappy that they were not included in the consultation process of the text on how the categorization should be devised, and the issue could be coming to a head.

European Parliament rules mean that legislators cannot amend regulations, only either pass or reject them. Bas Eickhout, a Green MEP from the Netherlands, told the Financial Times there was "widespread annoyance" that MEPs had been "ignored" during the consultation.

The heart of the matter is the taxonomy of the rules, or the scientific classification of fuel sources.

"Whereas the taxonomy was meant to be science-based, it is now subject to political meddling," said Paul Tang, another Dutch MEP from the Progressive Alliance of Socialists and Democrats.

MEPs have up to six months in which they can vote to reject the new rules, if they can pull together a majority of 353 votes, as well as obvious party and bloc sympathies and national attitudes which may affect voting.