The European Union is proposing to label energy from nuclear power and natural gas as 'green' to facilitate investment in these sectors, Reuters reported
The EU is set to moot the new rules in January deciding whether gas and nuclear projects will be included in the EU "sustainable finance taxonomy". This is likely to open door for investment in nuclear power for at least the next 2 decades and and natural gas for at least a decade.
The proposed system aims to make those investments more attractive to private capital, and stop "greenwashing", where companies or investors overstate their eco-friendly credentials.
"It is necessary to recognise that the fossil gas and nuclear energy sectors can contribute to the decarbonisation of the Union's economy," the proposal states.
The EU proposal is expected to set standards for for radioactive waste management and disposal which nuclear power needs to adhere to. Nuclear power produces very low CO2
The carbon-emission limits for the gas-based plant is set to well below those produced by coal-burning plants. It is proposed to be set at emissions less than 270g of CO2 per kilowatt.
France (were nuclear power is the largest source of electricityspearheaded the request to secure green label for nuclear power despite stiff opposition from Austria and scepticism from Germany , which is already implementing a roadmap to shutter all nuclear plants by end of 2022.
Last week, Germany shut down three of the six nuclear plants it still has in operation, a year before the country draws the final curtain on its decades-long use of atomic power.
Fossil-reliant countries in the EU's east and south have also batted for the continued use of natural gas, at least as a transitional source, even though it still produces significant greenhouse emissions.
The proposal now need approvals from a majority of EU member states and members of the European Parliament.
The EU aims to be climate-neutral by 2050 – an economy with net-zero greenhouse gas emissions.
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