- The EU court dismissed Austria’s lawsuit, allowing the European Commission to keep nuclear and gas classified as sustainable under its climate taxonomy.
- Judges ruled that nuclear emits virtually no greenhouse gases and gas remains a necessary transitional fuel.
The European Union’s General Court in Luxembourg has upheld the European Commission’s decision to classify nuclear power and natural gas as climate-friendly under the bloc’s green investment taxonomy.
The ruling, delivered on Wednesday, September 10, 2025, dismissed Austria’s lawsuit challenging the classification. Judges ruled that the Commission acted lawfully to include gas and nuclear projects in the EU’s sustainable finance framework, guiding investors toward environmentally aligned activities. Austria can still appeal to the EU Court of Justice.
The taxonomy treats gas and nuclear as “transitional activities,” eligible for green financing if they employ the lowest-emission technologies available and help ensure energy security. The court concluded that nuclear power produces virtually no greenhouse gas emissions and that viable low-carbon alternatives cannot guarantee a reliable supply.
Environmental groups strongly criticised the ruling. Greenpeace Germany’s executive director, Martin Kaiser, called it “a black day for the climate,” warning that billions could flow into gas and nuclear projects instead of accelerating renewables.
The European Commission maintains that the classification reflects a gradual approach, reducing emissions while safeguarding energy supply.