LEAK: EU considers expanding role of gas in green finance
Tallbloke’s Talkshop / by oldbrew / 9h
Gazprom pipes gas via Ukraine
Germany’s main gas supplier: Russia
Countries like Germany must know that once all their nuclear and coal plants have been closed (by order), their security of electricity supply would be heading towards zero without gas and imports. Saying it’s just a question of peak demand is nonsense, and they know that as well, but still pursue their delusional energy policies. What happens after 2050 when the gas is turned off is a mystery.
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The European Commission is reconsidering the position of gas in its sustainable finance taxonomy by recognising the fossil fuel’s role in keeping the lights on during peak electricity demand, according to a leaked document seen by EURACTIV.
The EU executive is currently drafting a rulebook for sustainable finance, drawing up a complete set of criteria defining what can be considered as a “green” investment in the European Union.
The draft rules – or “delegated acts” in EU jargon – are an essential part of plans to bring private finance onboard with Europe’s transition to a zero carbon economy and prevent greenwashing from firms making false environmental claims.
However, environmental groups have voiced concern that a leaked proposal to expand the remit of fossil gas in the taxonomy could in itself amount to greenwashing.
“Stakeholder feedback has highlighted that gas-fired power generation plays an important role in guaranteeing the reliability of electricity supply by compensating for times of low generation by intermittent renewable energy generation (wind, solar) and contributing to grid stability,” the leaked proposal says.
To acknowledge this, the draft text puts forward two options:
— The first recognises a role for “gaseous and liquid fuels” in providing a backup role for electricity generation, provided that “the direct greenhouse gas emissions of the activity are lower than 244gCO2e/kWh” or lifecycle emissions are “lower than 820 kgCO2e per kW of net installed capacity.”
— The second is to create a new category recognising “the role of gas-fired electricity generation” in grid stability, provided that “the activity is associated with life-cycle greenhouse gas emissions that are lower than 820 kgCO2e per kW of net installed capacity per year.”
“A gas-fired power plant used specifically for maintaining the reliability of electricity supply by contributing to grid stability can be assumed to operate 2,000 hours per year or less,” says the draft text.
This would enable gas plants which operate for less than 2,000 hours a year to fit into a “transition” category in the sustainable finance taxonomy because they would “guarantee the reliability of electricity supply” until their operating hours eventually fall down to zero by 2050.
As a general rule, the European Commission never comments on leaked documents.