The European Commission is expected to propose rules in January deciding whether gas and nuclear projects will be included in the EU “sustainable finance taxonomy”.

This is a list of economic activities and the environmental criteria they must meet to be labelled as green investments. By restricting the “green” label to truly climate-friendly projects, the system aims to make those investments more attractive to private capital, and stop “greenwashing”, where companies or investors overstate their eco-friendly credentials. Brussels has also made moves to apply the taxonomy to some EU funding, meaning the rules could decide which projects are eligible for certain public finance.

A draft of the Commission’s proposal, obtained by EURACTIV, would label nuclear power plant investments as green if the project has a plan, funds and a site to safely dispose of radioactive waste. To be deemed green, new nuclear plants must receive construction permits before 2045.

The lifetime extension of existing power plants will also be considered green “in view of the long lead times for investments in new nuclear generation capacity,” the draft says. To be considered green, these will however need to “include modifications and safety upgrades” to ensure they comply with “the highest achievable safety standards”, according to the draft.

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