EU faces legal action over green label for gas, nuclear

Environmental campaigners have lodged legal challenges against the European Union over the inclusion of fossil gas and nuclear energy in the EU's list of sustainable investments, known as the taxonomy.

Separate lawsuits, filed at the EU's general court in Luxembourg on Tuesday, by Greenpeace and a coalition, including ClientEarth and WWF, focus on how the European Commission classifies gas and nuclear in its taxonomy guide.

Greenpeace claims the EU is granting some gas and nuclear power stations a "fake" green label under its sustainable finance rules, Bloomberg reported.

Environmental campaigners claim that gas and nuclear energy are not sustainable and should not be considered "transition" or "enabling" activities.

The Commission, the EU's executive arm, has defended its position, saying that gas is a necessary transition fuel and that nuclear energy produces no carbon emissions.

Supporters said nuclear is vital to meeting emissions-cutting goals, while opponents cite concerns about waste disposal. Gas produces planet-warming emissions, but some see it as a temporary alternative to replacing the dirtier fuel, coal.

The case could have implications for the EU's commitment to achieving net-zero emissions by 2050, impacting its green investment goals. A judgment is expected in 2025, though participants expressed hope the court will act faster to deal with confusion in the market, The Guardian reported.

Campaigners said the Commission's plans could open the door to what is known as "greenwashing", which is the practice of making a product or company appear more environmentally friendly than it actually is.

Nina Treu, executive director of Greenpeace Germany, was quoted in The Guardian as saying gas and nuclear had been included in the guide because of "politically motivated lobbying".

"The taxonomy was meant to be a tool to meet the 1.5 C target (on global warming) and make the European Union climate neutral, fostering social and economic restructuring for the European economy by shifting funds," Treu said. "Instead of hindering greenwashing, it has become a tool for greenwashing."

Greenpeace lawyer Roda Verheyen was quoted as saying the EU has "violated the very idea of the taxonomy regulation". She said this is "especially obvious as including nuclear activities does pose significant harm to the environment, which is expressly prohibited by the regulation".

"Observe your own law. Actually carry through with the European green deal," she added.