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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: The EU’s General Court has ruled that nuclear power and, under certain conditions, fossil gas can be classified as “environmentally sustainable” in the bloc’s taxonomy regulation
• The judgment dismisses a case brought by Austria, which argued that their inclusion amounted to greenwashing and violated EU climate law
• The decision clears the way for nuclear projects to access EU green financing mechanisms
🔭 The context: The taxonomy, adopted in 2022, was designed to guide investment into sustainable energy sources
• Its inclusion of nuclear and gas has been one of the most contentious elements, sparking legal and political disputes across member states
• Austria, backed by Luxembourg, challenged the move, while France strongly supported nuclear’s recognition as low-carbon
• Germany, despite phasing out nuclear, recently reached a compromise with Paris to acknowledge its role in the EU’s future energy mix
🌍 Why it matters for the planet: The ruling could accelerate investment in nuclear energy, widely debated as both a reliable low-carbon source and a technology with unresolved waste and safety challenges
• By labeling it sustainable, the EU risks blurring lines between transitional and long-term green solutions, with implications for capital allocation across Europe’s energy system
• The inclusion of fossil gas, even conditionally, raises concerns about locking in continued emissions
⏭️ What's next: France is expected to push ahead with new nuclear projects, while the ruling may prompt Germany to soften its opposition to EU funding of nuclear infrastructure
• Financial institutions will now face decisions on how to allocate green funds, and environmental groups are likely to increase pressure for stricter conditions
• Austria and its allies may seek further legal or political avenues to contest the decision, but the judgment strengthens nuclear’s role in the EU’s decarbonization strategy
💬 One quote: “The Commission was entitled to take the view that nuclear energy generation has near to zero greenhouse gas emissions and that there are currently no technologically and economically feasible low-carbon alternatives at a sufficient scale.” – General Court of the EU
📈 One stat: The taxonomy ruling affects access to an estimated €250 billion in annual sustainable investment flows within the EU
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