The European Commission has produced a new note “A Taxonomy Complementary Climate Delegated Act” confirming that investment in certain gas and nuclear energy activities is defined as sustainable if it meets certain stringent criteria.

“Taking account of scientific advice and current technological progress, the Commission considers that there is a role for private investment in gas and nuclear activities in the transition,” said the EU Commission in a statement. “The gas and nuclear activities selected are in line with the EU’s climate and environmental objectives and will allow us to accelerate the shift from more polluting activities, such as coal generation, towards a climate-neutral future, mostly based on renewable energy sources.”

For both gas and nuclear the stringent conditions include that they contribute to the transition to climate neutrality. Nuclear power must fulfil nuclear and environmental safety requirements; and for gas, that it contributes to the transition from coal to renewables.

Mairead McGuinness, Commissioner in charge of Financial Services, Financial Stability, and Capital Markets Union, said: “The EU is committed to achieving climate neutrality by 2050 and we need to use all the tools at our disposal to get there. Stepping up private investment in the transition is key to reaching our climate goals. Today we are setting out strict conditions to help mobilise finance to support this transition, away from more harmful energy sources like coal. And we are boosting market transparency so that investors will be able to easily identify gas and nuclear activities in any investment decisions.”