- The European Commission established the “Taxonomy” as a quality label for ecologically sustainable investments. The European Commission is about to grant this quality label to a large number of highly polluting aircraft and ships.
- Ships and aircraft powered by fossil fuels will qualify for green financing if they meet certain debatable “efficiency” criteria.
- 100% of the order books of Ryanair, easyJet and Wizz Air and 90% of Airbus's order book already pass the test of this quality label for sustainable investments.
- Enormous cruise ships, such as the MSC World Europa, which are equipped to operate entirely on fossil fuels (LNG), are also considered sustainable under the new criteria.
Together with four European NGOs – Fossil Free, Protect our Winters, CLAW and Opportunity Green – Dryade has submitted a request to the European Commission to revise its rules for green investments in aviation and shipping. This is the first step in a process that could lead to a lawsuit before the European Court of Justice, unless the Commission responds to our request for revision.
The EU Taxonomy must become a quality label for ethical and sustainable investments. The Taxonomy provides companies, investors, and policymakers with a verified list of 'green' investments, so that significant private investments flow into activities that contribute to a fair and sustainable transition.
According to the new criteria for aviation, aircraft that meet weak fuel efficiency standards, or are certified to fly with a limited amount of 'sustainable aviation fuels', can be considered sustainable under the Taxonomy. However, history teaches us that such efficiency gains have always been negated by the growth of the sector. According to the new criteria for shipping, ships that run on LNG could also comply with the Taxonomy, despite the fact that LNG is a highly polluting fossil fuel that produces methane, a greenhouse gas that is 80 times more potent than CO2 in the short term. We believe that these new criteria are insufficiently scientifically substantiated and may jeopardise climate efforts and the binding climate targets of the EU.
Given that the expected lifespan of aircraft and ships is between 20 and 50 years, the quality label will stimulate investments in aircraft and ships that will continue to pollute our air and seas for many years to come. This investment incentive directly contradicts the urgent need to decarbonise all sectors.
This complaint is the latest in a series of legal actions against the Commission for including fossil fuel-based activities in the Taxonomy as so-called 'transitional activities'.transitional activities“.
Hiske Arts from the Dutch NGO Fossielvrij said:“The Taxonomy remains under the radar for most people – but if we do not oppose it, these industries will be given permission to label fossil fuel-powered planes and ships as sustainable. This would mean that money intended for climate solutions will ultimately fuel climate disasters, as it encourages the polluting aviation and shipping industries to continue their unsustainable growth path.”
Moritz Nachtschatt from Protect Our Winters Austria said:“European airlines cannot be considered sustainable if they continue to expand the global fleet. The current Taxonomy rules allow them to obtain green financing to upgrade their own fleet while selling their old planes to other airlines, resulting in the global fleet – and global aviation emissions – continuing to rise.”
Elias Van Marcke from Dryade said:“The inclusion of shipping and aviation activities with these criteria in the Taxonomy leads to the dilution of a classification system designed to provide investors with clear recommendations on green investments. Moreover, the EU endorses dubious solutions that undermine the transition to a green and low-carbon economy. It is crucial to remember that the Taxonomy criteria must align with the 1.5°C target of the Paris Agreement, a legal obligation that these criteria, in our view, do not meet.”
The aviation and shipping industry has lobbied hard to have certain criteria recognised as 'green' in the EU Taxonomy. As a result, a large part of the future fleet will already comply with the new Taxonomy simply by replacing older models. These criteria also facilitate further investments in polluting ships and aircraft.
Carly Hicks, Chief Strategy and Impact Officer & Legal Director at Opportunity Green, summarised it as follows:“Large cruise ships powered by fossil gas can receive a green label, despite the fact that these ships leak methane into our atmosphere, which has disastrous consequences for the climate. All sectors and companies must be held accountable for their share in reducing emissions, and the EU has a hugely important role to play in ensuring this. Instead, this decision threatens to direct huge amounts of financial resources towards highly polluting activities. This is the worst form of greenwashing. If the Commission does not address the legal violations we believe we have identified, we will be forced to take the matter to the European Court of Justice.”
The NGOs were assisted by Fred Logue of FP Logue Solicitors. The request for internal review was prepared by Tim Johnston (Law Library in Ireland and Brick Court Chambers in London), with support from Odette Chalaby (No5 Chambers) and Ali Al-Karim (Brick Court Chambers).