Jan Strupczewski and Kate Abnett

BRUSSELS (Reuters). – While the European Union plans to make a decision about whether investment in nuclear and gas should be labelled “climate friendly”, it will not decide on agriculture. Officials from the EU said that they are putting off a decision on future financing.

Under its “sustainable finance taxonomy”, the EU has finalized which activities are climate-friendly. This is a list of activities that must be met in order to be classified as sustainable investments.

Two people familiar with the discussions told Reuters that while the EU’s executive Commission will confirm whether nuclear and gas would be deemed climate friendly this month, it has shifted a decision regarding farming to a later time.

Some investors are now looking to green investments. This could impact the ability of an activity to get funding.

Discussions over the proposed new criteria have ignited debate as to whether radioactive nuclear waste, or low-carbon gas should be considered viable in transition.

The focus has been on farming as the sector is responsible for approximately 10% of EU’s greenhouse gases emissions. It can also cause damage to natural habitats, such as through pesticide use.

Legal & General Investment Management, Aviva (LON:) Last month, investors and others urged the Commission to not label subsidy for intensive agriculture as sustainable. This would be detrimental to the EU’s goals in climate change.

The Commission established taxonomy guidelines for transport, buildings, and other sectors in April. However, it delayed making decisions about politically sensitive areas like gas, nuclear energy, and agriculture.

A proposal on climate change and investments due to be submitted this month. The next year is due to determine whether investments comply with other environmental objectives, including the protection of nature. According to one official, agriculture will now be addressed at this stage.

Since more than one year, the EU’s decision about nuclear and gas has been ensnared in lobbying. The EU member states are divided on the question of whether labelling these activities as sustainable will aid in transitioning to renewable energy or allow companies to use them to make green claims despite polluting.