The European Commission (EC) proposes labelling energy sources, including natural gas and nuclear energy, as ‘green’. Furthermore, the EC plans to include these energy sources in its Taxonomy Regulation, easing the pathway for a smoother energy transition in the European Union (EU). The proposal by the EC is based on the energy transition plans of member countries that included natural gas and nuclear power in their net-zero transition plans. However, member countries of the EC are not united in the proposal. Countries like Spain, Germany and Austria have opposed the proposal and even threatened legal action against the Commission. On the other hand, France, the Czech Republic, and Luxembourg have agreed on the need for these energy sources to feature in the energy transition.
In a statement, the Commission said, ”Taking account of scientific advice and current technological progress, as well as varying transition challenges across the Member States, the Commission considers there is a role for natural gas and nuclear as a means to facilitate the transition towards a predominantly renewable-based future,”
The EU had, in 2021, committed to defunding fossil projects at the Conference Of Parties (COP26) event in Glasgow, Scotland. In addition, 25 countries and Finance Institutions, including the European Union, had committed to defunding overseas fossil fuel projects by 2022 in the transition to cleaner energy sources.
During the COP26 event in Glasgow 2021, African governments were united in their call for a just and fair energy transition that considers Africa’s need for industrialisation using its fossil resources. Despite being blessed with a vast array of fossil resources, Africa is the continent with the highest number of people without access to energy, with Nigeria topping the charts as the country with the largest number of people without energy access. With a dependency on fossil fuels for development, the push for defunding fossil development will impact the continent negatively.
Africa stands to benefit from the reclassification if and only if the new proposal applies to the countries outside the EU. It is important to note, some countries that made these commitments did not make similar for defunding local investments in fossil fuels. Approving the reclassification means Africa can access critical finance for large scale fossil projects as long as these projects fall within the specified emissions category. In addition, Africa can benefit from financing for renewable energy projects that can benefit the continent.
In conclusion, the energy transition process must allow for a fair and just transition, especially for Africa; defunding fossil projects globally will only prolong the lack of energy access for the people living in the developing third world countries whose governments do not have the financial power to diversify energy sources simultaneously and sustainably develop economies.