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EU Court Upholds Green Label for Nuclear and Gas

The ruling affirms the Commission’s discretion under the taxonomy, guiding investors on which projects qualify.

Overview

  • The General Court in Luxembourg dismissed Austria’s bid to annul the 2022 delegated act, leaving the taxonomy rules intact (case T-625/22).
  • Judges said the Commission acted within its powers in treating nuclear as near zero‑emission and in assuming insufficient feasible alternatives for reliable supply.
  • Gas and nuclear may qualify as sustainable only under strict conditions, including use of best available technology and, for gas, replacing more polluting coal plants.
  • The court found the Commission need not assess upstream or downstream activities such as uranium mining or fuel transport, nor risks from conflict or sabotage, in this act.
  • Austria can appeal to the European Court of Justice, while NGO challenges continue, and the taxonomy label continues to shape market disclosures and capital allocation.