Putin plays masterstroke as EU mulls relying on MORE Russian energy in new deal

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Putin plays masterstroke as EU mulls relying on MORE Russian energy in new deal

The EU taxonomy for sustainable activities is a system of classification that is established to determine which investments are environmentally sus

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The EU taxonomy for sustainable activities is a system of classification that is established to determine which investments are environmentally sustainable. This system was created in the wake of the European Green Deal in July 2020 and was made to help prevent “greenwashing” among different investments. For a while, the decision on including nuclear to this list has been a contentious one, with significant blocs of European countries vehemently opposing the classification of nuclear as “green”.

In an EU leader’s summit in Brussels last month, leaders prepared to include nuclear to this list.

After attending the summit, European Commission President Ursula von der Leyen said: “We need more renewables. They are cheaper, carbon-free and home-grown.

“We also need a stable source, nuclear, and during the transition, gas. This is why we will come forward with our taxonomy proposal.”

To be included in the taxonomy is significant, as it means that many megaprojects that are a part of nuclear investments, will not have trouble gaining support from banks.

Experts from the European Commission also classified natural gas as a transition fuel, that allows some countries to begin their energy transition from coal to pure renewable energy.

A bloc of European countries which include Czechia, France, Romania, Slovakia, Slovenia and Hungary signed a letter demanding that nuclear energy be recognised as a sustainable source.

For many countries, moving away from fossil fuels without nuclear energy will be difficult.

A German think tank DIW estimates that moving away from nuclear energy will increase the use of coal in Europe.

Many of the countries that support nuclear energy are currently relying on it in order to avoid falling into a state of energy dependency on Russia.

READ MORE:Putin ‘will cut gas’ to EU as Biden threatens ‘nuclear option’

“Russian gas might well be the EU’s Achilles’ heel.”

While the coalition agreement doesn’t directly mention the disputed Nord Stream 2 pipeline, it does talk about importing hydrogen from Russia.

Experts fear that including nuclear energy and natural gas as green sources will make more countries dependant on Russia for their energy needs, which could leave them vulnerable to the Kremlin.

Another think tank, BDI, has called for the construction of ”hydrogen-ready” power industries, which would run on natural gas, but have the potential to use nuclear energy one day.

German and Russian companies have taken this opportunity to locate potential hydrogen investment sites in both countries.

Russian oil company Gazprom even went as far as to present plans for the construction of a hydrogen valley at the Nord Stream 2 outlet in Mecklenburg in Germany.

Last week, President Vladimir Putin discussed the possibility of exporting hydrogen through existing gas pipelines from Russia, while speaking at the Russia Calling forum.



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