The EU’s decision to classify natural gas and nuclear energy as sustainable has faced legal challenges from Austria and Luxembourg, with a key ruling set for this week amid concerns raised by Greenpeace Germany that the move undermines Europe’s 2050 carbon neutrality target.

The European Union (EU) classified natural gas and nuclear energy as sustainable sources of energy in its EU taxonomy, a guide for green investments.

However, a new report by Greenpeace Germany argues that this decision has significantly hindered Europe’s green energy transition, potentially violating the EU’s legally binding target of achieving carbon neutrality by 2050. The report emphasises that the consumption, storage, and transport of natural gas contribute to high greenhouse gas emissions and suggests that expanding nuclear energy diverts crucial resources and attention away from renewable energy development.

This week, on Monday and Tuesday, the European Court of Justice in Kirchberg will deliver a ruling on a lawsuit filed by Austria against the EU’s decision to classify gas and nuclear energy as sustainable. Luxembourg has joined Austria in challenging this classification, opposing the inclusion of these energy sources in the EU’s green taxonomy.