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Austria loses its legal challenge against EU 'green gas' and nuclear rules

Austria lost its legal challenge to European Union rules classifying nuclear energy and gas as climate-friendly investment on Wednesday. Europe's second highest court sided with the EU in the case. Austrian government challenged the European Commission decision to include nuclear and gas in the EU "taxonomy", which is a list of investments that are able to be marketed and labeled as sustainable.

The court agreed with Brussels in a ruling that said the EU Commission was "right to believe that certain economic activities within the nuclear energy sector and the fossil gas sector can, under certain circumstances, contribute significantly to climate change adaptation and mitigation."

The Austrian Ministry for Environment said that the decision was "very regrettable".

"We have always believed that nuclear energy does not meet environmental sustainability criteria. The role of fossil gas in the energy transformation will be temporary.

The company said that it will now review the decision and decide on any possible next steps, including whether or not to appeal.

Gas and nuclear will be included in the EU taxonomy in 2022, causing a deep divide between countries on which energy source to use in order to achieve climate change goals.

Spain and Denmark, among others, had said that it was not credible for gas, which is a fossil fuel emitting CO2, to be labelled as climate-friendly. Poland and Bulgaria sought to support gas investments as a way to get rid of more polluting coal. Austria's legal case, filed to the EU general court by an earlier coalition government where the Greens controlled the environment ministry, argued that Brussels should annul rules because nuclear energy can't meet the requirement of "doing no significant harm" in the environment due to concerns about radioactive wastage.

Austria has long been against nuclear energy.

The European Commission didn't immediately respond to a comment request. (Reporting and editing by Charlotte Van Campenhout, Sharon Singleton, Francois Murphy, Vienna)

(source: Reuters)