Viewpoint: Taxonomy and the need to reform the EU’s electricity system (World Nuclear News – February 11, 2022)

It is not the purpose in this article to give full details on the EU Taxonomy for Sustainable Financing, a process launched more than three years ago by the European Commission. A summary will be provided instead, allowing then to move towards a broader reflection on the European electricity system launched 30 years ago, and under constant reform … and which does not work as desired.

The harsh discussions in Brussels and the European capitals on the inclusion of nuclear and gas in the Taxonomy, combined with the energy crisis directly impacting the European citizens in their daily life, provide an opportunity to take a step aside and understand the need for a deep reform of the electricity system in Europe.

The purpose of the EU Taxonomy for Sustainable Financing is to guide financing institutions, and investors in general, in deciding where to invest while respecting principles of sustainability. This Taxonomy is embedded in EU Green Deal policies which aim to reach carbon neutrality in 2050 at EU level.

Therefore, the main general criteria for an activity to be Taxonomy compliant is to contribute to climate change mitigation or adaptation. In addition, such an activity must also respect the DNSH (Do No Significant Harm) criteria – meaning it can prove it causes no significant negative environmental impact.

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