This is the Judgment of the General Court (Grand Chamber) in Case T-625/22, where the Republic of Austria, supported by the Grand Duchy of Luxembourg, sought the annulment of Commission Delegated Regulation (EU) 2022/1214. This regulation amends Delegated Regulation (EU) 2021/2139 regarding economic activities in certain energy sectors (nuclear and fossil gas) and Delegated Regulation (EU) 2021/2178 regarding specific public disclosures for those economic activities, specifically concerning their inclusion as sustainable economic activities within the EU Taxonomy Regulation. The court ultimately dismissed the action.
The judgment is structured around the pleas raised by Austria against the Delegated Regulation. These pleas are divided into two main categories: those concerning economic activities in the nuclear energy sector and those concerning economic activities in the fossil gas sector. For each sector, the court examines procedural and substantive issues, including alleged breaches of the Taxonomy Regulation, the European Climate Law, the Treaty on the Functioning of the European Union (TFEU), and general principles of EU law such as the precautionary principle and the principle of technological neutrality. The court also considers arguments related to the essential elements of a legislative act, scientific evidence, and the Commission’s margin of discretion.
Several provisions of the Taxonomy Regulation are central to the judgment, including Articles 10 (climate change mitigation), 11 (climate change adaptation), 17 (do no significant harm – DNSH), and 19 (technical screening criteria). The court assesses whether the Commission correctly applied these provisions when establishing technical screening criteria for including nuclear and fossil gas activities as environmentally sustainable. Key issues include the interpretation of “low-carbon alternatives,” the assessment of GHG emissions, the consideration of life-cycle assessments, and the management of risks associated with nuclear energy (reactor accidents, radioactive waste) and fossil gas (methane emissions). The court also addresses procedural concerns related to impact assessments, public consultations, and the involvement of expert groups. **** This act has implications for Ukraine, as it defines the conditions under which investments in nuclear and fossil gas energy sectors can be considered sustainable, which may affect energy projects and policies in Ukraine, especially considering the country’s energy transition goals and its reliance on nuclear energy.
