The European Union plans to label some gas power plants as sustainable investments, a draft document seen by Reuters showed, after an initial proposal to deny them a green label faced a backlash from some member states.
Cyprus is planning to step up gas production and to develop its LNG terminal at Vasilikos where the first gas deliveries are scheduled for 2022.
The Commission’s new proposal, shared with EU countries on Saturday, would class gas-fuelled plants that generate power plus heating or cooling as a green investment if strict conditions on emissions are met and they are operating by 2025.
The EU’s proposal for gas plants is part of its Sustainable Finance Taxonomy, which defines what economic activities can be marketed in Europe as sustainable investments from next year.
The Commission declined to comment on the draft proposal. It plans to finalise the sustainable finance rules by April 21.
The EU’s aim is to steer more capital into environmentally friendly projects to help it deliver on its plan to rapidly slash the greenhouse gas emissions causing climate change.
But the taxonomy has become mired in disputes between EU countries over how to treat investments in natural gas, forcing the Commission to rewrite its original proposal from November.