A European Union court has ruled that gas and nuclear energy may continue to be labelled as sustainable investments, dismissing Austria’s attempt to overturn the European Commission’s controversial taxonomy rules.
Judges at the General Court in Luxembourg announced on Wednesday that the Commission had acted within its powers when it included the two energy sources in the bloc’s climate-friendly investment framework. They concluded that nuclear power generates negligible greenhouse gas emissions, while gas can serve as a transitional source in the absence of fully viable renewable alternatives.
The EU taxonomy, introduced to direct private and public investment towards green projects, identifies economic activities compatible with the bloc’s environmental and climate goals. Austria filed its case in 2022, arguing that the inclusion of nuclear and gas was misleading and environmentally damaging.
Vienna insisted that nuclear energy carries severe long-term risks and that natural gas remains a source of carbon pollution. The court, however, sided with the Commission, which had argued that both could contribute to emissions reduction while maintaining energy stability.
Environmental groups have also challenged the classification separately. “This is a disastrous signal,” said Martin Kaiser, Executive Director of Greenpeace Germany. “It diverts billions into gas and nuclear instead of speeding up the transition to renewable energy.”
The ruling may still be appealed to the Court of Justice of the European Union, the bloc’s top court.
