The European Union is facing legal action over its plan to label vessels using fossil fuels as “green”.
Five non-governmental organisations have launched a challenge against the definitions in the EU taxonomy regulation.
Fossielvrij, Protect our Winters, Dryade, CLAW and Opportunity Green claim the European Commission is “about to stick a green investment label on thousands of highly polluting planes and ships under changes to the EU taxonomy for sustainable activities”.
Vessels running on fossil fuels could be eligible for green finance if they meet certain weak “efficiency” criteria, the groups are saying.
Ships powered by LNG, for example, would be deemed sustainable, they added.
The taxonomy is a classification system established to clarify which economic activities are environmentally sustainable in the context of the European Green Deal.
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 green groups are asking the EC to review the investment rules.
The challenge is the first step in a process that could lead to action before the European Court of Justice.
The EU taxonomy should act as the “gold standard” for informing ethical and sustainable investments, the NGOs argue.
“LNG-powered ships could be compliant, despite LNG being a highly polluting fossil fuel which produces methane, a greenhouse gas which is 80 times more potent than CO2 in the short term,” they said.
No evidence?
The groups said there is no robust scientific evidence for these new criteria.
“Given the expected lifespans of planes and ships range from 20 to 50 years, this means that the taxonomy could drive investment to planes and ships that pollute the air and seas for decades to come, making a mockery of the urgent need to decarbonise all sectors,” they added.
Hiske Arts of Dutch NGO Fossielvrij said: “The taxonomy is flying under the radar for most people — but if we don’t challenge it, these industries will be allowed to rubber-stamp planes and ships powered by fossil fuels as sustainable.”
Elias Van Marcke of Dryade described the EU as “sanctioning murky solutions that don’t support a green transition to net zero”.
“It is crucial to remember that the taxonomy criteria must be compliant with the Paris Agreement’s 1.5C goal, a legal obligation we believe these criteria fall short of,” he added.
The EU response to the challenge is expected in May or June.
The commission told TradeWinds it had received a request for a review from three NGOs: Dryade, Fossielvrij and Protect our Winters.
“The request covers aviation and shipping activities included in the amendments to the Climate Delegated Act adopted in June 2023,” a spokesperson added. “The commission will reply to the request in due course.”
