CJEU upholds nuclear and gas inclusion in sustainable investment taxonomy
The Court of Justice of the European Union (CJEU) has dismissed Austria's challenge to Commission Delegated Regulation (EU) 2022/1214, which classifies certain nuclear and fossil gas activities as sustainable investments under the Regulation (EU) 2020/852. Austria argued that these sectors should not be considered environmentally sustainable due to their associated risks and environmental impacts. However, the Court held that the Commission acted within its delegated powers and was entitled to conclude that, under specific conditions, nuclear and fossil gas activities can contribute meaningfully to climate change mitigation and adaptation. It emphasised that nuclear energy produces near-zero greenhouse gas emissions and that no economically viable low-carbon alternatives currently exist at sufficient scale to meet continuous energy demand.