Austria’s government lost its case in the EU’s General Court, which upheld the European Commission’s 2022 decision to include nuclear energy and natural gas (under certain conditions) in the EU taxonomy of sustainable investments. The court ruled that the Commission was within its rights to determine that specific activities in these sectors can “contribute substantially” to climate change mitigation or adaptation, so long as they adhere to strict environmental and technical conditions.

Austria had challenged the inclusion, arguing that nuclear energy violates the “do no significant harm” principle – citing concerns about radioactive waste and environmental risks – and that classifying gas as sustainable could undermine climate integrity. Nonetheless, the court found that the Commission’s assessments were not manifestly erroneous and that the rules’ safeguards (e.g. emission limits for gas plants, requirement for nuclear safety) keep the taxonomy consistent with EU climate goals.