Germany to abstain from EU vote on green investment plan

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Germany to abstain from EU vote on green investment plan

BERLIN, Jan 3, Reuters -- Germany wants to avoid an escalation in the dispute over a European proposal to classify nuclear energy and natural gas as climate-friendly energy sources by abstaining in a vote on the investment plan, government sources said on Monday.

The European Commission's decision to include gas and nuclear investments in the EU's sustainable finance taxonomy rules was published late on December 31 - a timing that was criticised by European lawmakers.

During the months of heated debate about the proposals, Germany and other EU member states argued that gas investments were needed to help them quit coal. Some people said labelling a fossil fuel as green would undermine the credibility of the EU as a global leader in tackling climate change.

Emissions-free nuclear energy is also divisive. France, the Czech Republic, and Poland agree that nuclear power should have a big role in curbing global warming. Austria, Germany and Luxembourg are opposed, citing concerns about radioactive waste.

The three-way coalition government of the German Chancellor Olaf Scholz, consisting of the centre-left Social Democrats, ecologist Greens and business-friendly Free Democrats, is also split on the matter.

During the coalition negotiations last year, the three parties did not mention the topic in their coalition deal presented in November, because they were not able to agree on a joint wording regarding the EU's green investment rules.

Two people familiar with the decision said that they agreed behind closed doors that they will not be involved in a fight against the European Commission's compromise proposal and simply abstain in the vote when EU leaders will have their final say at a summit later this year.

A government spokesman said earlier on Monday that the three coalition parties rejected the use of nuclear energy in Germany.

He said that the parties agreed that natural gas could be used as a bridging technology for the time being and they would discuss how to proceed with the proposal going forward, as per the Commission's proposal.

The Commission hopes to adopt a final text by the end of the month, after it collects comments on its draft until January 12th. The text can be discussed with EU governments and parliament for up to six months.