EU Parliament to consider gas a "Green" energy sourceJul 07, 2022
Overnight, EU lawmakers voted in favour of labelling gas and nuclear power as “green” as part of the continent’s plan to transition away from fossil fuels.
We’ve long been of the view that gas is the natural transitional fuel that can bridge the gap between fossil fuels and cleaner energy sources.
Burning gas to produce power has a far lower carbon footprint compared to coal and oil, with the added benefit of having all of the infrastructure in place to produce and consume it.
We think that the world is ready to embrace it as part of the energy mix for the next decade and potentially beyond that. As a result, we hold several Investments in companies looking to supply gas to energy hungry parts of the world.
The following Reuters article provides an overview of the proposed EU legislation:
Read the full article here.
Our key takeaways:
- On Wednesday the European parliament backed EU rules labelling investments in gas and nuclear power plants as climate-friendly.
- The vote in favour of the proposal means the EU can now look to pass the proposal into law. The only risk facing the proposal is if 20 of the EU’s 27 member states oppose the move.
- The new rules will add gas and nuclear power plants to the EU "taxonomy" rulebook from 2023, enabling investors to label and market investments in them as green.
- EU Financial Services Chief Mairead McGuinness said "The Complementary Delegated Act is a pragmatic proposal to ensure that private investments in gas and nuclear, needed for our energy transition, meet strict criteria".
- Slovakian Prime Minister Eduard Heger said the vote result was good for energy security and emissions-cutting targets
To see the Investment Memos for these companies click on the links below:
Elixir Energy (ASX: EXR)
- Exploration stage, coal bed methane gas, Mongolia
Invictus Energy (ASX: IVZ)
- Exploration stage, gas, Zimbabwe
Top End Energy (ASX: TEE)
- Exploration stage, gas, Northern Territory