The EU’s highest court has upheld the European Commission’s decision to grant a sustainable finance label to investments in nuclear power and natural gas, dismissing a complaint by Austria.
The European Commission, in 2022, approved a sustainable finance label for both nuclear and gas investments, defying objections from environmental activists and dissent within its own ranks.
The EU argued that both have a role to play as cleaner power sources during the transition to a net-zero carbon future. However, Austria, strongly opposed to nuclear power, took the decision to court, citing safety risks and unresolved questions over nuclear waste management.
The Court of Justice of the European Union (CJEU) found that the commission did “not exceed” its power and “was entitled” to the view in its so-called “taxonomy.”
The court “endorses the view that economic activities in the nuclear energy and fossil gas sectors can, under certain conditions, contribute substantially to climate change mitigation and climate change adaptation,” it said in a statement.
