The global environmental organization, together with Client Earth and WWF, will bring the European Commission to the justice court in Luxembourg over its decision to include gas and nuclear energy as sustainable sources. Environmentalists allege that marketing them as sustainable may be deemed as greenwashing.
False environmental claims should not be a part of the Green Deal, the European Commission's recent plan for a green transition to a more sustainable global economy. Greenpeace argues that both gas and nuclear energy have adverse effects on the environment and human health. Gas is a fossil fuel that releases greenhouse gases when burned, which contributes to climate change, while nuclear energy produces hazardous nuclear waste that can remain dangerous for thousands of years.
Despite these concerns, the European Commission stands by its decision to include gas and nuclear energy in the sustainable finance taxonomy, stating that they are necessary to achieve the EU's climate goals. Moreover, the Commission claims that they have taken steps to ensure that investments in these sectors meet strict sustainability criteria.
However, Greenpeace believes that this is not enough. Including natural gas and nuclear energy in the taxonomy undermines the credibility of the EU's sustainable development plan agenda.
On Tuesday the organization filed documents with the court in Luxembourg for a legitimate proceeding on this issue as part of a broader effort to promote genuinely sustainable forms of energy and to hold institutions accountable for their environmental claims.
The outcome of this legal challenge could have significant implications for the future of sustainable finance in the EU and beyond. If Greenpeace wins the case, it could set a precedent that requires financial institutions to exclude gas and nuclear energy from their sustainable investment portfolios.
This legal challenge also highlights the growing importance of sustainable finance as an essential tool for transitioning to a low-carbon economy. As the world faces the urgent threat of climate change, sustainable finance can help direct investments toward genuinely sustainable projects that benefit both people and the planet.