Stock Groups

Lawmaker group asks EU to withdraw green investment label for gas -Breaking

[ad_1]

© Reuters. FILEPHOTO: Flags from the European Union are seen outside of Brussels headquarters of European Commission on March 6, 2019, Belgium. REUTERS/Yves Herman

By Kate Abnett

BRUSSELS (Reuters), Approximately 100 European Union lawmakers asked Brussels to withdraw its plans to call energy investments made in gas green. They claimed that it would hurt Europe’s effort to lessen dependence on Russian fossil fuels.

The EU’s plans to classify gas and nukes as green in its sustainable finance taxonomy (a guidebook that allows investors to be classified according to their climate-related goals) caused divisions even before Russia invaded Ukraine.

Russia called the invasion a “specially military operation” in order to demilitarize Ukraine. This has caused the EU to reassess its energy priorities, and to try to reduce its dependency on Russia. Russia supplies around 40% of EU’s gas.

We welcome your plans to create a Europe free from Russian fossil fuels. This is in sharp contrast to the Taxonomy Regulation proposal that would incentivize fossil gas investments through taxonomy regulation,” the letter signed by 102 legislators and read by Reuters.

It is clear that we need to reduce our dependence on Russian gas, and to transition to more renewable resources. “We demand that the Commission remove the Complementary Delegated Act,” said the Commission, referring specifically to the taxonomy rules for gas and nuclear.

According to the EU’s chief adviser on taxonomy, this letter suggested that instead of encouraging investment in “truly sustainable energy”, it should focus on encouraging them. This letter follows comments by the EU’s chief tax advisor, who said that gas standards proposed for the EU were “not adequate” in order to support the climate change goals.

Some EU nations consider gas to be a “transition fuel” because it produces less carbon dioxide than coal.

A majority of EU legislators or 20 countries could reject the taxonomy proposal by July. Some lawmakers are currently drafting motions against it.

Michael Bloss, Green lawmaker said that he is confident there will be an opportunity to win absolute majority.

Representatives from five parliamentary organizations signed the letter, representing most of the 705 legislators in Parliament. Since opinions are split within members, however, it is difficult for groups to have a clear position.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]