A coalition of NGOs, supported by 35,000 citizens, is taking legal action against the European Commission for including polluting planes and ships in the EU’s sustainable finance legislation, known as the EU Taxonomy.
The coalition, comprising organizations like Opportunity Green, Dryade, Fossielvrij NL, and Protect Our Winters Austria, argues that the inclusion of these polluting industries under “green” investments undermines the Taxonomy’s purpose, which is to guide investments toward activities that genuinely support a green transition.
In late 2023, the EU Commission added aviation and shipping to the Taxonomy, allowing even fossil-fuel-powered ships and planes to qualify for green finance if they meet certain weak efficiency criteria.
The NGOs claim this move disregards scientific evidence on climate change, particularly the high methane emissions from LNG-powered ships and the insufficient CO2 reductions in aviation.
After their initial challenge was rejected by the Commission in June 2024, the NGOs are now bringing the case to the European Court of Justice, aiming to compel the Commission to revise these criteria and ensure that the Taxonomy aligns with a credible pathway to limiting global warming to 1.5°C.
David Kay, Legal Director at Opportunity Green, argued that the current criteria for aviation and shipping in the EU Taxonomy send the wrong message to investors by promoting investments in polluting technologies, undermining confidence in truly green investments. He stressed the need for the EU Commission to be held accountable for what he views as unlawful criteria.
While judges and regulators are finally stepping up against the relentless greenwashing in the aviation and cruising sectors, the EU is taking greenwashing to the next level.
… said Hiske Arts at Dutch NGO Fossielvrij
Elias Van Marcke of Dryade argued that the EU Taxonomy should provide clear guidance for green investments. He criticized the inclusion of shipping and aviation under flawed criteria, claiming it undermines the credibility of the Taxonomy by prioritizing industry interests over genuine sustainability.
