A draft proposed by the European Commission suggests that the European Union could label some gas power plants as sustainable investments under certain strict conditions. This latest draft came after the previous version, which tried to deny the green label for gas projects, triggered a backlash from some member states. The draft is part of the EU’s Sustainable Finance Taxonomy, which determines what business activities can be marketed in Europe as sustainable investments starting in 2022.
Under the new draft, gas plants that generate power, as well as cooling or heating, can get the green label. These plants are only eligible if they replace a high-emitting fossil fuel-based capacity and reduce greenhouse gas emissions per kWh of energy by at least 50%. The gas plants have to be operational by 2025, emit no more than 270 grams of CO2 equivalent per kWh of energy, and allow the use of low-carbon fuels in the future.
For gas plants that do not replace a more polluting facility, the emission cap is 100 grams of CO2 equivalent per kWh. This means that existing gas power plants will be required to install emission reduction and capture technologies.
