The Court of Justice of the European Union has rejected a legal challenge brought by Austria concerning the inclusion of nuclear energy and fossil gas in the EU’s regulations for sustainable investments. Judges in Luxembourg ruled on Wednesday that the European Commission’s assessment that certain activities in these sectors can substantially contribute to climate protection and adaptation to climate change was justified.
The Commission had maintained that nuclear power generation produces virtually no greenhouse gas emissions and that there are currently insufficient low-carbon alternatives to reliably meet energy demand. The court found no overreach of authority in the Commission’s decision and dismissed Austria’s concerns regarding the inherent risks associated with nuclear power plants and the adverse implications of droughts and climatic contingencies.
Furthermore, the court upheld the approach granting fossil gas a role in climate protection under specific conditions. The delegated regulation of 2022 was seen as part of a phased process designed to reduce greenhouse gas emissions while ensuring energy security (Judgment in Case T-625/22).