The European Commission has decided that power plants burning natural gas can be considered generators of green energy. This means they can count as sustainable investments along with nuclear power. The commission’s technical rules on sustainable finance classify a list of sustainable economic activities in the EU. Under these guidelines, economic activities that may help EU countries meet their energy needs while shifting from coal power can be considered sustainable.
As soon as the rules were made public in late December 2021, a chasm emerged. Austria threatened to sue the commission, arguing that classifying natural gas investments as sustainable will breach the EU’s legal obligation to reduce its greenhouse gas emissions 55% by 2030, compared with 1990 levels. Denmark, Luxembourg, and Spain flayed the rules in an open letter, saying they would divert investment away from renewables. Spain also announced that it will set its own rules that weed out investments in the natural gas sector.
