Page 6 - EurOil Week 01 2021

EurOil COMMENTARY EurOil

Brussels labels both gas and

nuclear as green

The energy crisis may have encouraged a more pragmatic approach to the

energy transition

EUROPE THE call by the European Commission (EC) to lockdowns. A lack of investment in indigenous
recognise both gas and nuclear energy as sus- gas supply in Europe, coupled with poor perfor-
WHAT: tainable investments has prompted a fierce back- mance across the continent’s wind farms, has
Panel no indent lash from some member states, exposing cracks exacerbated the crisis. With gas prices so high,
Panel indent in the EU’s vision for how a net-zero future can some countries have been forced to turn coal-
be achieved. fired power plants back on, meaning their emis-
WHY: The EC is drafting changes to the EU tax- sions are now higher than they were prior to the
Panel no indent onomy for what investments should qualify as pandemic.
Panel indent sustainable. This taxonomy is designed to help Against this backdrop, the EC has acknowl-
companies, investors and policymakers decide edged the value of gas as a cleaner replacement
WHAT NEXT: what can and cannot be considered environmen- for coal that is more reliable than intermittent
Panel no indent tally sustainable economic activities, and avoid renewable supply. Meanwhile, nuclear power
Panel indent providing support for so-called “greenwashing.” plants (NPPs) can create nearly zero-carbon
Its proposals will be debated both by EU mem- baseload energy supply, albeit producing radi-
ber states and the European Parliament before oactive waste in the process that must be safely
being finalised. stored.
Under the leadership of President Ursula von
der Leyen, the EC has adopted a decidedly more Sustainable with conditions
hostile attitude to natural gas. Nevertheless, The EC issued a statement on January 1 saying it
from recent news reports it has become clear had begun consultations with a member states
that the Commission intends to classify gas as expert group on proposed changes to the taxon-
sustainable. omy. In the statement, it noted that EU member
This recognition comes as Europe grapples states had varying energy mixes, and some were
with its worst energy crisis in decades. Wholesale still heavily dependent on coal for their power
gas prices have risen to heights not previously and heating needs.
thought possible, following a strong rebound “The taxonomy provides for energy activi-
in demand after coronavirus (COVID-19) ties that enable member states to move towards

P6 www. NEWSBASE .com Week 01 06•January•2022