On September 11, the General Court of the European Union dismissed Austria’s action against the delegated regulation by which the European Commission included nuclear energy and natural gas in the European scheme for sustainable investment. The decision confirms that, under certain conditions, these two energy sources can make a substantial contribution to climate change mitigation and adaptation objectives, alongside security of supply.

We have no viable alternatives

Austria had challenged the legitimacy of including nuclear and gas in the EU Taxonomy as early as 2022, arguing environmental risks and incompatibility with climate neutrality objectives. However, the General Court ruled that the EU executive did not exceed its powers when setting technical criteria to allow, under certain conditions, these activities to qualify as sustainable.

The judges emphasized that nuclear power has near-zero greenhouse gas emissions and that there are currently no feasible alternatives on a sufficient scale to continuously and reliably supply electricity demand. For gas, the approach is a gradual one, based on reducing emissions and its role as a transitional source until renewables and storage are fully developed.

For Romania, the Luxembourg decision has direct implications. Our country is simultaneously developing two strategic directions: the expansion of the Cernavodă power plant (units 3 and 4) and the construction of the first small modular reactor (SMR) at Doicești, with US support. The confirmation of nuclear’s status in the Taxonomy means European recognition, but also a greater chance to access green finance and private capital for nuclear projects, considered critical for energy security and decarbonization.

Natural gas also has a key role in the Romanian energy mix, both through new investments in flexible production capacity and through the future exploitation of indigenous resources. Its inclusion in the Taxonomy, with strict emission conditions and a transition to hydrogen and biomethane, opens the door for the financing of essential projects designed to ensure the stability of the system in the years when renewables will grow at a fast pace.

The General Court’s decision reinforces the European framework for energy transition, based on technological diversity and pragmatism. At the same time, it confirms that nuclear and gas investments will be assessed according to clear technical criteria, but will not be excluded a priori from sustainable funding streams. Just one day later, the Court of Justice of the European Union (CJEU) annulled the European Commission’s approval of state aid for the construction of two new nuclear units at the Paks plant in Hungary.