Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Germany cries foul over nuclear energy in EU's green investment rule book

Published 01/22/2022, 09:49 AM
Updated 01/22/2022, 10:15 AM
© Reuters. FILE PHOTO: A general view of the nuclear power plant, whose last unit will be shut down at the turn of the year, in Gundremmingen, Germany, December 29, 2021. REUTERS/Lukas Barth/File Photo

By Michael Nienaber

BERLIN (Reuters) - German Chancellor Olaf Scholz's three-party coalition government has voiced its objections to a European Union draft plan to label nuclear power plants as a sustainable energy source in a formal letter to Brussels, ministers said on Saturday.

The EU taxonomy aims to set a gold standard for green investments, helping climate-friendly projects to pull in private capital and stamping out "greenwashing", where investors and companies overstate their eco-credentials.

"As the federal government, we have once again clearly expressed our rejection of the inclusion of nuclear energy. It is risky and expensive," Vice Chancellor and Economy Minister Robert Habeck said in a joint statement with Environment Minister Steffi Lemke, both senior members of the Greens party.

In its letter to Brussels, published by the Economy Ministry on its web page, the German government also pointed to the lack of any safety requirements regarding nuclear power plants.

"Serious accidents with large, cross-border and long-term hazards to humans and the environment cannot be excluded," Berlin said in its letter, adding that the question of where to store radioactive waste in the long term was still unanswered.

Habeck and Lemke said that, if the European Commission disregarded Germany's objections and left the draft plan unchanged, Berlin should reject the plan in their opinion.

However, German government sources told Reuters earlier this month that coalition parties wanted to avoid an escalation in the EU dispute and agreed in coalition talks behind closed doors to abstain in any upcoming vote.

LONG DELAYED

The EU rules have been long delayed, with countries split over whether nuclear energy and natural gas deserve a green badge. Austria has already said it would take legal action if the European Commission proceeds with its draft plan to label both as sustainable investments.

The German government said in its letter it supported a temporary green label for natural gas as a bridge solution on the bloc's path to climate neutrality.

"Gas-fired power plants can facilitate the rapid transition to renewable energies and the reduction of emissions in the energy sector as a whole," it said.

During months of debate on the proposals, Germany and other EU member states argued that gas investments were needed to help them quit more-polluting coal. Others said labelling a fossil fuel as green would undermine the credibility of the EU as it seeks to be a global leader in tackling climate change.

© Reuters. FILE PHOTO: A general view of the nuclear power plant, whose last unit will be shut down at the turn of the year, in Gundremmingen, Germany, December 29, 2021. REUTERS/Lukas Barth/File Photo

Emissions-free nuclear energy is similarly divisive. France, the Czech Republic and Poland are among those saying that nuclear power should have a big role in curbing global warming. Austria, Germany and Luxembourg are among those opposed.

The Commission hopes to adopt a final text by the end of the month.

Latest comments

The cause of alleged climate change can not be proven in the short term. This is all speculation and fear mongering. All for more government control. Ask more questions, do your research (meaning looking at ALL sides’ info and research.) Don’t give up your mind. Don’t be brainwashed by popular belief. It’s just a religion now.
everyone who had Nord stream 2 would say nuclear power is "not sustainable"
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.