Gas, nuclear not green, financiers tell EU

A group of investors who collectively manage EUR 9 trillion has written a joint statement to the EU urging it not to classify natural gas and nuclear power as sustainable under its new system. The Net-Zero Asset Owner Alliance comprises 60 international finance companies, including Allianz SE, Banco Santander, Barclays, AXA Group and BNP Paribas.

The EU Taxonomy directive was agreed last year and European Commission will decide whether to include natural gas on its list in the coming weeks. The act will enter into force if voted through by the European Parliament and the European Council, which will have the final say on which energy sources are considered “green”. If it classifies nuclear and gas as sustainable, this will impact how investors such as pension funds can approach “greening” their investment portfolios.

The Net-Zero Asset Owner Alliance however supports the creation of separate investment vehicles for investments in oil, gas and nuclear power. Last month a number of member states including Czechia, France and Poland pushed for the inclusion of natural gas and nuclear power in the “sustainable” investment category. Green stock and bond portfolios do not currently allow gas and nuclear. The taxonomy regulation is scheduled to come into force in January.

Source: Bloomberg, Euobserver,