Nuclear Energy and Fossil Gas: Fit as a Sustainable Investment? A Review of Case T-625/22 Austria v Commission on Taxonomy Alignment of Certain Nuclear and Fossil Gas Activities

In its judgment Austria v Commission , the General Court dismissed Austria’s action for annulment of the Complementary Climate Delegated Act (CCDA), which classifies certain nuclear energy and fossil gas activities as taxonomy-eligible transitional activities under the EU Taxonomy Regulation. This judgment constitutes a landmark decision at several levels. Not only does this judgment impact the way the role of the Commission in the interpretation of the Taxonomy Regulation should be seen, it may also impact energy policy and security, financial markets and therefore society on several fronts. Given that the judgment confirms that nuclear energy and fossil gas activities may qualify as transitional activities contributing substantially to climate change mitigation, provided that no technologically and economically feasible low-carbon alternative is currently available, the traffic light for private investments in both sectors remains firmly green.