The European Parliament has voted against the objection to include natural gas as an environmentally sustainable activity in the European Commission’s Taxonomy.
SuperNode CEO John Fitzgerald responded:
“I am amazed and disappointed that natural gas has been labelled as ‘green’ by the EU taxonomy. Gas is a fossil fuel and one of the largest contributors to climate change. It is not a solution to global warming. The International Energy Agency has warned that there can be no new investments in gas if we are to meet the goals of the Paris Climate Agreement. Yet with the labelling of gas as green, the EU is now signaling to investors and the world that Europe should keep putting money into fossil fuels to stop the planet from heating up”
The European Parliament was voting on whether to object to the inclusion of natural gas and nuclear energy in the Commission’s Taxonomy Delegated Act, published in February 2022. 278 MEPS voted in favour, 328 against and 33 abstained. An absolute majority of 353 MEPs was needed to veto the proposal.
The European Commission’s delegated act is part of the development of an EU-wide classification system for sustainable investments, the EU Taxonomy, intended to direct investments towards sustainable projects and activities. According to the European Commission, the initiative ‘should create security for investors, protect private investors from greenwashing, help companies to become more climate-friendly, mitigate market fragmentation and help shift investments where they are most needed’.
The debate became extremely divisive with opponents saying the use of natural gas, a core fossil fuel and major contributor of global carbon emissions, cannot be labelled green. While backers say gas is a relatively clean fuel and it’s role as a transitionary fuel will be vital to decarbonisation. The Russian invasion of Ukraine only further amplified the vote as independence from Russian gas is now a key political aim for the EU.
The Taxonomy will now pass to the European Council who must object by July 11th 2022 or the Taxonomy will enter into force and apply as of January 1st 2023.
See the Taxonomy Delegated Act here.
See the European Parliament Official Release here.