The so-called “Green Deal” is a project spearheaded by European Commission President Ursula von der Leyen, who took office on Dec. 1. Von der Leyen is a German politician who had been the longest-serving Cabinet member for German Chancellor Angela Merkel. The new legislation has a goal of making the EU climate-neutral by 2050, and is in concert with the EU’s political stance with the Paris Agreement from 2015.
Ursula von der Leyen
France led a group of nuclear energy proponents in seeking revisions to an earlier version of the financing rule, released Dec. 11, that excluded nuclear power and gas from classification as technologies eligible for the investment program. The EU Parliament and member states had sparred over the recognition of nuclear power, and of natural gas as a “transition” source of energy.
France, Britain, and Eastern EU countries—the Czech Republic, Hungary, Poland, Slovakia, Romania, Bulgaria, and Slovenia—rejected an earlier deal proposed last week that excluded nuclear power and natural gas.
Emissions Reduction Targets
Monday’s deal says targets on emissions reductions by member states to reach the 2050 goal should be finalized by next summer, ahead of a planned EU-China bilateral meeting and the COP26 Summit in Glasgow, Scotland, next fall. The new deal advances the EU’s push to embed environmental goals in standards for banks, money managers, and insurers, by defining what is considered a green activity and what is not. The EU wants to regulate the market for green energy investment to direct money into the regional economy.
Pascal Canfin, a French member of the EU Parliament, in a statement said, “I am delighted that a deal was reached between the European Parliament and the Council.” Canfin chairs the European Parliament’s environment committee. “With this deal, we now have a common language and new rules for financial markets,” he said.
Canfin noted that the final version of the deal means both natural gas and nuclear power “are neither included nor excluded in principle” from parts of what’s called a taxonomy list, which in effect includes the EU’s definitions of sustainable activities for investment purposes. Canfin said nuclear power and gas can be included if they—along with other activities on the list—comply with a “do no significant harm” principle.
Some EU member states, such as Poland, have pushed back against the organization’s climate goals, in part saying they would cause economic harm. Meanwhile, a recent report said 80% of the EU’s coal-fired power units operate at a loss.
