In February 2022, the European Commission proposed that natural gas and nuclear energy projects can be classified as sustainable energy under certain circumstances. The committee believes that to achieve the EU's carbon neutrality goals, the energy sector needs a lot of private investment and all feasible solutions, including nuclear power and natural gas.

The above-mentioned specific circumstances show that the natural gas power generation project needs to meet the requirement of carbon dioxide emission per kilowatt-hour of less than 270 grams, or the average annual carbon dioxide emission of 20 years of operation does not exceed 550 kg, and the natural gas power generation project must be used to replace fuel gas. A coal-fired power generation project can obtain a green classification. In terms of nuclear power, the EU requires that new nuclear power projects approved by 2045 must ensure that they do not cause significant damage to the environment and water resources.

Academia, politics and environmental groups have all expressed opposition to this classification. Opponents argue that natural gas, a fossil fuel that generates far less greenhouse gas emissions than coal, could also contribute to climate warming. Although nuclear power is a kind of low-carbon electricity, it can bring extremely serious environmental consequences. However, EU financial services director Mairead McGuinness said the results obtained by the European Parliament were practical and ensured that the nuclear and gas-related investments needed in the energy transition were in line with "green" regulations. The proposal may come into effect in 2023.

Disagreements within the EU intensify

Although the classification of nuclear power and natural gas has been basically finalized, the debate on this topic among EU member states and all sectors of society has not stopped. France has always been a firm "supporter" of nuclear power, and the French government announced in 2022 that it will build six new nuclear reactors. Following the announcement by the European Parliament, Erkki Maillard, senior vice-president for European affairs at EDF, said that the inclusion of nuclear power in the green classification would boost investment now and in the future, provide a more level playing field for nuclear power, and be more conducive to the EU Achieving carbon neutrality goals.

Slovak Prime Minister Eduard Heger also expressed support for this result, arguing that nuclear and natural gas power generation can help maintain energy security and contribute to achieving carbon neutrality. But according to Thomas Richter, CEO of the German Investment Funds Association, the move to classify nuclear power and natural gas as green is not only politically controversial but also scientifically inconclusive, and the association does not support the decision. Luxembourg, Austria and other countries have also expressed opposition to this, saying that the vote will be challenged in court later. Austrian climate minister Leonore Gewessler said the decision was neither credible nor knowledge-driven, and irresponsibly jeopardized our future.

Laurence Tubiana, CEO of the European Climate Foundation, believes that with the inclusion of natural gas in the sustainable finance category, the EU has not only missed an opportunity to set a gold standard for sustainable finance, but also set a dangerous precedent. In addition, some members of the European Parliament and a number of non-governmental environmental protection organizations have also said that they will continue to oppose the proposal, even saying that the decision violates previous EU legislation and is considering suing the European Commission.

The current energy supply crisis

The industry generally believes that the EU's move to green-label the controversial nuclear power and natural gas is actually a helpless move under the current energy supply crisis. The Russian-Ukrainian conflict continues, EU member states are suffering from soaring natural gas prices, and people from all walks of life have repeatedly called on the government to make changes. For this reason, the EU has made the above decision. At the end of June, the European Union promulgated the latest gas storage regulations, requiring member states to fill gas storage to at least 80% by November this year. On July 6, President of the European Commission von der Leyen announced that the EU is formulating an emergency plan to "protect the EU market and industrial chain from disruption." prepare for winter.

In addition to including nuclear power and natural gas in the sustainable energy classification, the EU has recently taken a series of measures to ensure energy supply, such as contacting natural gas exporting countries other than Russia to expand natural gas imports. Nevertheless, in the view of the industry, the possibility of the EU solving the energy crisis in the short term is still very small. EU Energy Commissioner Kadri Simson said that the prospect of Russia's gas supply to Europe is full of uncertainty, and the EU is likely to face problems such as rising energy costs in winter. At present, the situation is still deteriorating. Although there is sufficient gas supply in each EU member state, there are still huge supply risks in the future.

In fact, Gazprom has recently issued an announcement: The Nord Stream 1 natural gas pipeline to Germany will be suspended from July 11 to 21 for the annual maintenance of the natural gas transportation system. This is the second time Russia has announced a reduction in gas transmission to Europe after it has repeatedly reduced gas transmission to Europe.Editor/XingWentao