Power Generation and Transmission

Thresholds in the EU taxonomy delegated act on climate change mitigation and adaptation

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The following is an open letter. The signatories of this statement are representatives from the power generation sector in Europe with a commitment to clean and safe energy.

Following the publication of the European Commission’s draft Delegated Act on the EU Sustainable Taxonomy, we are writing to express our strong support for the taxonomy thresholds based on climate and environmental science. We recognise the effort of the Technical Expert Group and the Commission in assessing fossil fuel emissions and preparing the scientific criteria. Thereby, enabling future-proofed investments and clean energy technologies.

Heat and electricity generation are responsible for over a quarter of the EU’s greenhouse gas emissions. In order to decarbonise the sector it is essential to help investors avoid funding high-carbon assets. At the same time, electrification will be key in reaching the EU 2030 and 2050 climate goals, especially for electrification end-uses in other sectors. A robust, smart transmission and distribution grid will be essential to integrate distributed renewable energy resources. It will also allow consumers to actively participate in the energy system.

To this end, we welcome the 100g CO2e/kWh life-cycle intensity limit for substantial contribution to climate mitigation. This is derived through a robust and scientific process, recommended by TEG. Emissions from fossil fuels are beyond this threshold. We applaud the Commission for upholding it in the draft Delegated Act. The inclusion of power generation with a carbon intensity above this limit would deviate from science. Additionally, it would also harm the EU’s decarbonisation trajectory and its 2050 net-zero objectives.

Moreover, to further align with Europe’s objectives these thresholds must also reduce over time. We thus join the scientific community in the call for declining emissions threshold. The technical screening criteria for green energy generation should follow the TEG recommendations. It should be set lower than 100g CO2e/kWh, reducing over time to 0g CO2e/kWh by 2050.  


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