Gas possible, nuclear not: lead group of MEPs departs from original proposal

A group of Members of the European Parliament leading negotiations on future support under the Just Transition Fund has acknowledged that rules could allow gas-fired facilities to qualify for support. However, the exemption would not apply to nuclear facilities.

Even after Monday’s talks, the European Parliament and European Commission have yet to agree on which facilities will be eligible for support from the Just Transition Fund. Up to EUR 40 billion is planned to be paid out under the scheme.

Although all European Union member states agreed last week to exclude support for fossil-fuel facilities, the group of MEPs leading negotiations on the terms of support has acknowledged that some gas-fired facilities could nevertheless qualify for it.

Even if this version of the rules were approved, gas-fired facilities would generally not meet the requirements for sustainable financing envisaged by the EU taxonomy. Only if specific conditions were met could an individual project be granted an exemption and receive support.

The support rules are due to be completed in September this year, after which they will be negotiated with the European Commission and the governments of member states.

As usual, gas-fired and nuclear facilities, promoted primarily by V4 countries, are generating the most controversy in the preparation of the Just Transition Fund.

From the perspective of the V4 countries, however, this is not an entirely positive outcome. The results of the discussions suggest that the European Parliament currently finds it more acceptable to support gas-fired facilities than nuclear power plants.

This should be particularly important information for Poland and the Czech Republic, as these member states are currently planning the construction of new nuclear units. The Czech Republic is currently preparing the notification of state aid, which is expected to be approved by the end of 2022.