Montel Magazine 1 2022 - Uproar over green investm Montel Magazine 1 2022 - Uproar over green investm - Page 19

“ Including gas in the taxonomy created an unhelpful precedent and muddies the waters for investors looking to do the right thing ”

Causing outrage

The European Commission ’ s proposal to label nuclear and natural gas-fired power projects as sustainable has outraged environmental groups and some governments .
By Siobhan Hall
At stake is getting a “ sustainable finance ” label that could potentially make it easier to attract investors to nuclear and gas-fired power projects which meet the criteria in the taxonomy .
This is because investors are increasingly interested in nonfinancial factors such as the environmental , social and governance ( ESG ) credentials of companies and projects , as governments tighten regulations on carbon emissions and transparency , for example .
The EU taxonomy is financial legislation that aims to increase transparency about companies ’ sustainable activities , and so help investors identify projects that support the EU ’ s long-term climate and environmental goals , including having net-zero emissions by 2050 .
It is also part of efforts to stop “ greenwashing ” where financial products that support unsustainable activities are marketed as green .
The taxonomy “ is not an EU energy policy instrument ” said EU financial services commissioner Mairead McGuinness as she presented the proposal in Brussels on 2 February .
It does not require investments in projects which are aligned with its criteria for what is green or sustainable , nor does it prohibit investments in those that are not aligned .
EU countries “ remain fully responsible for deciding their own energy mix ,” she said .
The EC ’ s goal in proposing that natural gas-fired and nuclear
Montel Magazine 1 – 2022