If the EU authorities do not want to include nuclear energy in the process of transforming the energy system, this could raise prices in the market and thereby cause social problems and have a negative impact on the economy. Christopher Dembik, head of the macroeconomic analysis department at Saxo Bank.
The European Union has pledged to achieve climate neutrality by the middle of the century, for which it needs to seriously reduce greenhouse gas emissions into the atmosphere and increase the use of energy from renewable sources. This requires technological advancements, restructuring of energy systems, and trillions of euros in investment. Earlier, skeptical voices were also sounded in the European Union regarding the possibility of continuing to use nuclear power plants; Germany, for example, planned to completely abandon nuclear energy production by the end of next year.
“At the EU level, there is an ongoing debate about whether nuclear power should be considered “green” in terms of taxonomy. Depending on the outcome of the negotiations, the negative impact on the EU Green transformation without nuclear-being part of it will drive up energy prices in Europe, which will put pressure on the economy and may even create additional social tensions. Think of the Yellow Vests movement.” – Dembik said.
On the other hand, if the EU continues to use nuclear power plants, the transformation of its energy system may be “less painful”, the expert said.
“Given the current level of technological development, renewable energy sources cannot replace traditional energy sources,” states Dembik.
The EU taxonomy also establishes a list of economic activities that are declared “environmentally sustainable”. It was created as part of the so-called “Green Deal”, the implementation of which is aimed at transforming the European Union in such a way as to reduce its negative impact on the environment. The move to climate neutrality was also part of the deal.