Legal & Regulatory News

European Commission approves draft Taxonomy Complementary Delegated Act on gas and nuclear activities

02 February 2022

On 2 February 2022, the European Commission (the Commission) approved, in principle, a draft complementary delegated act (the Taxonomy Complementary Delegated Act) which sets out the technical screening criteria for the inclusion of certain nuclear and gas activities in the list of economic activities covered by the EU Taxonomy.

The text of the Taxonomy Complementary Delegated Act sets out the conditions, under Article 10(2) of the Taxonomy Regulation ((EU) 2021/2178), subject to which certain nuclear and gas activities can be added as transitional activities to those already covered by the first delegated act on climate mitigation and adaptation, which has applied since 1 January 2022. The LMA previously wrote about the first delegated act here.

The conditions set out in the Taxonomy Complementary Delegated Act are as follows:

  • for both gas and nuclear, the activities must contribute to the transition to climate neutrality;
  • for nuclear, the activity must fulfil nuclear and environmental safety requirements; and
  • for gas, the activity must contribute to the transition from coal to renewables.

More specific additional conditions apply for all the above activities and are specified in the Taxonomy Complementary Delegated Act.

Furthermore, the Taxonomy Complementary Delegated Act Introduces specific disclosure requirements for businesses related to their activities in the gas and nuclear energy sectors. To help ensure transparency, the Commission has amended the Taxonomy Disclosures Delegated Act ((EU) 2021/2178), so that investors can identify which investment opportunities include gas or nuclear activities and make informed choices.

The text of the Taxonomy Complementary Delegated Act follows expert consultations with the Member States Expert Group on Sustainable Finance, and the Platform on Sustainable Finance (PSF). The LMA previously wrote a story about the PSF's response to the Commission's consultation and a copy is available here.

Once made available in all European languages, the Commission will formally adopt the Taxonomy Complementary Delegated Act and send it for scrutiny by the European Parliament and Council.

Click here to access the draft Taxonomy Complementary Delegated Act.