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EU Court Upholds Sustainable Tag for Nuclear and Gas

The decision removes a key legal obstacle to directing sustainable finance toward nuclear projects.

Overview

  • Europe’s General Court rejected Austria’s bid to annul the EU’s 2022 taxonomy that allows certain nuclear and gas activities to be marketed as sustainable.
  • Judges said the European Commission was entitled to conclude that, under specific conditions, nuclear and some fossil gas can substantially aid climate mitigation and adaptation.
  • Analysts said the ruling could end a deadlock over EU funding for conventional nuclear reactors and bolster France’s push to unlock investment, with some reporting speculation that Berlin may ease its resistance.
  • The 2022 move exposed divisions among member states, with Spain and Denmark opposing a green label for gas while Poland and Bulgaria sought gas support to replace coal.
  • Austria and environmental groups criticized the judgment, citing nuclear waste and greenwashing concerns, and Austrian climate minister Norbert Totschnig called the outcome “very regrettable.”