Nuclear energy is “green”: now what?

By Manuel Protásio (PhD Candidate at the University of Minho)

In the beginning of July this year, the European Parliament voted in favour of a proposal on labelling natural gas and nuclear power as climate-friendly investments. For the first time, Parliament did not object to the Commission’s Taxonomy Delegated Act to include specific nuclear energy activities, under certain conditions, in the list of environmentally sustainable economic activities covered by the so-called EU Taxonomy. Although it is still early to read anything else besides the actual change in the taxonomy of the European Commission, the truth is that this conceptual change regarding nuclear energy can be seen as a major political statement regarding the future of energy in the European Union.

From a political point of view, it can be argued that this change comes from the urgent and dramatic context we are currently in, due not only to Climate Change but also to the geopolitical shift that has risen from the Russia’s war with Ukraine. Within this new global context, European Union’s political landscape also changed, particularly in what concerns energy policy and I believe this new taxonomy given to nuclear energy is also part of this new political landscape. Nevertheless, it is not our intention to bring forward a political analysis to this shift in European policy regarding nuclear energy, but to give a brief overview of whether nuclear energy should be labelled as a green energy and a climate-friendly investment and if so, how can this change help European Union’s objectives in becoming more self-sustainable in terms of energy production as well as achieving its goals under the Green Deal.

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REPOWER EU – A challenge and an opportunity

By Maria Barros Silva (Associate Lawyer at SRS Advogados – Energy and Competition Law) and Nuno Calaim Lourenço (Managing Associate at SRS Advogados – Energy and Competition Law)

1. Context

The energy sector is cyclical by nature. History offers several examples of market expansion followed by very sudden contractions. Unfortunately, the current crisis differs from previous ones. To put things into dire perspective, the European Union (“EU”) heavily relies on fossil fuel (gas, oil and coal) imports for its energy needs, amounting to circa 60% of gross energy consumption in the past 5 years. The EU imports 90% of its gas, with Russia previously accounting for 45% of those imports, as well as for 25% of oil and 45% of coal. Although European domestic production of renewable energy sources has increased significantly in recent years, the intermittent nature of the so-called “green energy”, coupled with limited renewable-energy storage and a drastic and intransigent reduction in the production of EU coal, lignite and gas has meant that the EU remains energy dependent.

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