The European Parliament today backed EUrules that would label investments in gas and nuclear power plants as climate-friendly, dropping an attempt to block the law that has exposed deep divisions between countries over how to tackle climate change.
The vote paves the way for theEUproposal to pass into law unless 20 ofthe EU's27 member states decide against the move, which is considered unlikely.
The new rules will add gasand nuclear power plants to the EU's "classification" rulebook from 2023, enabling investors to label their investments green and bring them to market.
Of the 639 lawmakers in attendance, 328 opposed a motion to try to block EUgasand nuclear proposals.
The results will bring relief to the European Commission, which proposed the rules in February after more than a year of delays and intense lobbying by governments and industry.
The gasand nuclear rules have divided EU countries, lawmakers and investors.Brussels has redrafted its rules several times, hesitating on whether to grant a green label to gas plants.Its final proposal has sparked a heated debate on how to meet climate goals in the midst of a crisis in Russia's dwindling gas supplies.
Natural gas, a fossil fuel, produces planet-warming emissions — but far less than coal, and some EU countries see it as a temporary alternative to moving away from dirtier coal.
Nuclear energy does not emit carbon dioxide, but it produces radioactive waste.Nuclear proponents such as France say meeting emission reduction targets is crucial, while opponents have expressed concerns about waste disposal.
Slovak Prime Minister Eduard Hague said the vote was in favor of energy security and emission reduction targets.
"By 2050, we will continue to work towards climate neutrality," he tweeted.
Luxembourg and Austria, which oppose nuclear power, have also warned against labelling natural gas green, saying they will challenge the law in the EU's top court.
"This is neither credible, ambitious, nor knowledge-based, jeopardizing our future, and even more irresponsible," Austrian climate minister Leonor Gerwessler said.
Climate activists have criticized the move, with Greenpeace saying it will also spark legal challenges.
"This is a bad signal for the rest of the world and could undermine the EU's leadership in climate action," said Anders Schelde, chief investment officer at Danish pension fund AkademikerPension.
But industry groups welcomed the vote.Ingbert Liebing, managing director of the German local utility association VKU, called it "an important sign of the role of natural gas as a bridge to achieve climate goals".
The EU taxonomy aims to clean up the murky world of sustainable investing by ensuring that any financial product making an environmental claim meets certain criteria.For example, natural gas plants must switch to low-carbon gases and meet emission limits by 2035.
Before the vote, lawmakers were divided on how much the law would affect financial markets, as it does not prohibit investment in activities without a green label.
