EU Court Upholds Green Label for Nuclear & Gas
Economy / Finance

EU Court Upholds Green Label for Nuclear & Gas

The European Union’s court has rejected a legal challenge brought by Austria concerning the inclusion of nuclear energy and fossil gas in the bloc’s rules for sustainable investments. Judges in Luxembourg ruled on Wednesday that the EU Commission’s assessment that certain activities related to nuclear power and fossil gas can, under specific conditions, contribute substantially to climate protection and adaptation to climate change was sound.

The Commission had argued that nuclear energy generation produces virtually no greenhouse gas emissions and that sufficient low-carbon alternatives are currently unavailable to consistently meet energy demand. The court found that the Commission did not exceed its authority in making this determination and dismissed Austria’s concerns pertaining to the risks associated with nuclear power plants and the negative impacts of droughts and unpredictable climatic events.

Furthermore, the court endorsed the approach that fossil gas could, under defined circumstances, also make a significant contribution to climate protection. The delegated regulation from 2022, according to the court, represents a phased approach to reducing greenhouse gas emissions while ensuring energy supply security (Judgment in case T-625/22).