July 1, 2022, Saxony, Lippendorf: a solar park directly bounded by the site of the Lippendorf lignite power plant. After more than 20 years, the so-called EEG surcharge, which customers pay through the electricity bill, will no longer apply. It still stands at 3.72 cents per kilowatt hour. Experts do not expect electricity prices to fall as a result of the abolition, but at least the sharp rise will be curbed.
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The European Union on Wednesday voted to maintain some specific uses of natural gas and nuclear energy in its taxonomy of sustainable energy sources.
The European taxonomy is its classification system for defining “environmentally sustainable economic activities” for investors, policymakers, and businesses. This official EU opinion is important because it affects project funding as the region paves its way to tackling climate change. In theory, the taxonomy “aims to boost green investment and prevent ‘greenwashing’,” according to the EU parliament.
The vote on natural gas and nuclear power follows the one passed in February, which led to a referendum on what had been a particularly controversial piece of the ruling. Natural gas emits 58.5% of both carbon dioxide and coal, according to the U.S. Energy Information Association. Nuclear power does not generate any emissions, although it generates criticism for the problem of radioactive waste storage.
Although the region voted in favor of keeping nuclear gas and natural gas in its green taxonomy, it did not give these energy sources a free pass to include them in all situations.
In general terms, the use of natural gas to generate electricity or to heat or cool many homes at once will be considered sustainable, while other uses may be excluded. They will have to be below certain emission thresholds, and will only be approved until 2030 or 2035, depending on the specific situation.
New nuclear power plants using the most advanced technologies and modifications to extend the life of existing power plants can be approved until 2040 or 2045.
The EU is still obliged to reduce greenhouse gas emissions by at least 55% by the end of the decade and to become climate neutral by 2050, in accordance with the European Climate Law. But Wednesday’s vote shows that, at the same time, the EU wants to encourage private investment in natural and nuclear gas as the region makes the transition from fossil fuels, especially coal, to clean energy.
Members of KoalaKollektiv and Greenpeace are attending a protest against greenwashing with green “smoke” and green paint next to the Euro Sculpture on Willi-Brandt-Platz, in the financial district of Frankfurt, Germany, on Tuesday, January 11, 2022. Tuesday, January 11, 2022. allowing certain nuclear power and natural gas projects to be classified as sustainable investments under the proposed classification system, known as taxonomy, is being criticized by green legislators and climate groups.
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Mixed reactions
There was a wide range of opposition to the decision.
Some observers opposed the fact that continuing to use natural gas means a constant dependence on Russian energy.
“I am in shock. Russia’s war against Ukraine is a war paid for by fossil fuels that heat the climate and the European Parliament has just voted to increase billions in funding for Russia’s fossil gas,” Svitlana Krakovska, Ukrainian scientist of the Intergovernmental Panel. on Climate Change, said in a statement shared by the European Climate Foundation, a philanthropic advocacy initiative to fight climate change.
Others say the inclusion of natural gas in the taxonomy undermines their goal of avoiding green washing.
“With gas in the taxonomy, the European Union has lost the opportunity to set a gold standard for sustainable finance. Instead, it has set a dangerous precedent. Politics and vested interests have won over science. said Laurence Tubiana, Director General of Europe. Climate Foundation, in a statement.
“The EU’s taxonomy is now failing to achieve its own initial goal, which was to prevent green money laundering in the financial system. Investors, businesses and consumers will now look elsewhere for the science-based clarity and credibility they need. Tubiana said.
But some observers cheered on the vote and see it as an indication that European government leaders are facing the harsh reality that it will take time and many steps to transform energy infrastructure, according to David Blackmon, an analyst and related public policy consultant. with energy. based in Texas.
The vote “reflects a growing recognition that the ongoing‘ energy transition ’will be much more complex and difficult to achieve than global, simplistic narratives,” Blackmon told CNBC.
“The fact that a legislature as focused on the environment as the European Parliament has now been recognizes the role that both natural and nuclear gas must play in ensuring the continent’s energy security and stability is a change of perspective. welcome that should serve as an example.emulation by the Biden administration “.
And if the use of natural gas helps the ultimate goal of removing coal, then this is a justified decision, some say.
“Our main and most urgent priority is to phase out coal as soon as possible in Europe. To do this, gas can play a role as a ‘useful activity for the transition’ in replacing coal. coal – and only by replacing coal – because they want to pursue decarbonisation, “wrote Pascal Canfin, chairman of Parliament’s environment committee, in a LinkedIn post in February after the initial vote.
“There is a coalition contract in Germany, the parties have agreed to accelerate the removal of coal from the country from 2038 to 2030. This means building more renewables, obviously, but also more gas,” Canfin wrote. “And this is exactly the specific case where gas can make a positive contribution to the energy transition: when it replaces coal in power generation. Even the German Greens are supporting this trajectory.”