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The EU has split up due to the delay in deciding to classify gas as a green investment

The EU has split up due to the delay in deciding to classify gas as a green investment

The European Commission is divided according to its landmark classification system for investors who need to delay the decision to classify fossil fuel gas as green energy.

Brussels plans to publish an updated draft of a taxonomy for sustainable finance later this week. The document is designed to focus their money on environmentally friendly investments and to help eliminate the bad news of companies ’environmental impact, known as green cleaning.

The Commission had to renew its initial proposals after criticizing the text earlier this year for recognizing gas as a low-emission technology as a low-emission technology that could help the EU meet its 2050 zero-network pollutant target by 2050. .

Now the publication of the draft rules could be delayed again because the commission wants to fix the impasse. According to the draft text seen by the Financial Times, the commission proposed postponing the decision to assess separately how gases and nuclear “contribute to decarbonisation” to make the technology debate “more transparent”. .

Officials told the FT that some committee members were pushing for them to give the gas a green label, rather than postponing the decision later this year.

“There are a large number of voices on the committee that want to include gas in the taxonomy,” an official said. It is likely that the final decision to accept the current text on Monday or to postpone it again will be decided again.

Investors are seeing the sharp taxonomy of the EU as the first evolution of major regulatory bodies to create a labeling scheme that will help them invest in billions of euros in green financial products.

But the process has been divisive, as several EU governments have called for lower-emission energy sources such as gas to be considered.

Coal-linked countries that bank on gas to help reduce emissions, such as Poland, Hungary, Romania and others, do not want to discriminate against labeling systems. France and the Czech Republic, meanwhile, are pushing for the recognition of nuclear taxonomy as a “transitional” technology.

A has filtered the legal text What the FT saw earlier this month paved the way in some cases for green gas. This has since been removed along with other sensitive issues such as how best to classify the agricultural sector, according to the latest draft seen by the FT.

The EU government and the European Parliament have the power to block the draft if it is opposed by a qualified majority of countries and MEPs.

Environmental groups have praised the exercise, calling on Brussels to uphold criteria based on scientific institutions to determine the thresholds for sustainable economic activity.

Luca Bonaccorsi of the NGO Transport and Environment said it was in danger of delaying decisions on gas and nuclear that would favor nuclear countries such as France and the Czech Republic to “join an alliance to create a greening and inclusive alliance”. energy sources ”.

“If they were to ally, it would be impossible to deal with the green cleaning of these two unsustainable energy sources,” Bonaccorsi said.

Delays in agreeing on a taxonomy have led Blusel to abandon its attempt to use the bloc’s 800-billion-euro recovery and resilience fund as a basis for EU green bonds. About 250 billion euros will be issued in the coming years as permanent bonds, making the commission one of the world’s largest issuers of permanent debt.

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