Five NGOs urge the EU to rethink what is considered “green”

As the NGOs note, the EU Taxonomy should act as the ‘gold standard’ for informing ethical and sustainable investments. It exists to provide a verified list of ‘green’ investments to companies, investors and policymakers, with a view to directing huge amounts of private finance to activities that deliver a fair, green transition.

The NGOs assert that the criteria could lead to investments in planes and ships that contribute to pollution for decades, contradicting the urgency to decarbonize all sectors and jeopardizing the EU’s legally binding climate targets.

The expected long lifespans of planes and ships (20-50 years) raise concerns about the potential long-term environmental impact of the Taxonomy, potentially allowing investments in fossil fuel-based activities under the guise of being “transition activities.”

This challenge is part of a series of legal actions against the Commission for incorporating fossil fuel activities into the Taxonomy. This inclusion may incentivize the aviation and shipping industries to sustain their unsustainable growth paths by labeling their activities as environmentally friendly, thereby diverting funds meant for climate solutions to support polluting practices, the NGOs highlight.

Fossielvrij

Hiske Arts at Dutch NGO Fossielvrij emphasized that the Taxonomy is not widely recognized, and without challenging it, industries could endorse planes and ships fueled by fossil fuels as sustainable. 

Protect Our Winters Austria

Moritz Nachtschatt at Protect Our Winters Austria stated that European airlines expanding the global fleet can’t be seen as sustainable. He pointed out that the taxonomy rules might permit them to secure green finance for fleet upgrades, while selling old planes could lead to an actual increase in the global fleet size and global aviation emissions.

Dryade

Elias Van Marcke of Dryade expressed concern that including shipping and aviation in the Taxonomy with the given criteria dilutes a classification system intended to offer investors clear guidance on green investments. He argued that the EU, instead, is endorsing murky solutions that do not support a green transition to net zero. 

Opportunity Green

Carly Hicks, Chief Strategy and Impact Officer & Legal Director at Opportunity Green, warned about the potential greenwashing of big cruise ships powered with fossil gas. She noted that despite leaking methane into the atmosphere with disastrous consequences for the climate, these ships could obtain a green label. 

To remind, during the 2022 GREEN4SEA Virtual Forum, Dr. Konstantinos Galanis, Chairman of the International Ship Recycling Association, discussed about the European Union Taxonomy and its relationship to the ship recycling, highlighting the fact that the economic activity needs to meet and qualify as an environmentally sustainable solution.