Delegated Act on EU Taxonomy of Sustainable Activities – E3G reacts

EU flag logo on the European Parliament ‘Paul Henri-Spaak’ building in Brussels, Belguim. Photo bu Guillaume Perigois via Unsplash.

02 Feb 2022

The European Commission has just published the final Complementary Delegated Act on the EU Taxonomy of Sustainable Activities. The proposal labels fossil gas and nuclear energy investments as sustainable, with some looser criteria than previous drafts.

Quotes on the Delegated Act on EU Taxonomy of Sustainable Activities

Johannes Schroeten, E3G Policy Advisor, EU Sustainable Finance (including Germany), said:

“This proposal makes a mockery of the European Green Deal’s promise of a sustainable future. The European Parliament, so far sidelined by the Council and Commission, must reject this proposal. Europe’s climate goals and the integrity of EU regulation are at stake.”

“Die deutsche Regierung hat sich mit ihrer Forderung zur Abschwächung der Gas-Kriterien durchgesetzt. Dies ist einer selbsterklärten Klimaregierung nicht würdig. Das Europäische Parlament wird nun richten müssen, was Deutschland und Frankreich versäumt haben: Die Glaubwürdigkeit der Taxonomie durch den Ausschluss von Atomkraft und Gas zu bewahren.”

Kate Levick, Associate Director, Sustainable Finance, E3G, said:

“Today’s decision, in particular moving ahead with calling fossil gas investment “sustainable”, signals to other countries that Europe is not serious about the climate transition. It is difficult to overstate how damaging this will be, and is already proving to be, to the EU’s international reputation and climate diplomacy goals. But there is still time for European institutions to halt the process.”

Tsvetelina Kuzmanova, E3G Policy Advisor, EU Sustainable Finance, said:

“Europe’s regulatory process has been under political pressure from national interests, and this, unfortunately, has led to a serious error. Mislabelling gas and nuclear power will encourage greenwashing, create additional costs for firms, and benefit nobody. Institutional investors, including the EU’s own Investment Bank, have said that they would ignore these pointless amendments.”

Lisa Fischer, Programme Leader, Climate Neutral Energy Systems, said:

“Fossil gas has no place in the EU taxonomy. It remains a fossil fuel with a serious impact on our climate, already responsible for more emissions than coal in Europe. Putting gas at the same level as renewable energy solutions is pure greenwashing and encourages investors to build significant financial risks into their portfolios. This flawed compromise undermines the credibility of EU investment labels and their ability to drive a global market standard.”

Lucie Mattera, Head of E3G Brussels Office, said:

“Neither the recommendations of the Platform for Sustainable Finance nor voices in the European Parliament have been recognized by national governments or the Commission in the design of the Delegated Act. The politicization of the taxonomy shows that backroom deals between Member States remain central in EU decision making, resulting in poor outcomes for the environment, investors and the economy.”