FPPG welcomes the EU Parliament’s vote on the new taxonomy for sustainable investment

A majority of 328 members of the European Parliament in Strasbourg voted last week against the European Commission’s objection regarding the delegated act on the Regulation of the taxonomy and therefore in favor of classifying nuclear energy and natural gas as sustainable. Until now, natural gas had been excluded by most sustainable investors, which has contributed to deepening the EU’s dependence on Russian gas, a situation that has become unacceptable following the escalation of aggression in Ukraine.

The deadline for contesting the vote expired on July 11, and in the absence of an abstention, the Complementary Delegated Act will enter into force on 1 January 2023. This implies that European officials have qualified the use of gas, under certain conditions, as a sustainable activity that directly responds to this essential desideratum of energy security of Romania and that it will contribute to medium and long term stability in Central and Eastern Europe, through bringing to market new key energy resources from the Black Sea, in conditions of economic efficiency, while contributing to strengthening the trajectory of achieving the goal of climate neutrality in the perspective of 2050.

“This is significant progress in achieving the EU’s goal of energy independence from Russian imports, as it will direct sustainable investment, reducing the need for such imports. Romania is one of the countries with the most significant natural gas resources, and the offshore law adopted by the national parliament two months ago receives new opportunities for the development of the Romanian energy system in relation to the regional role we want and build in recent years. FPPG aims to be Romania’s main ally for increasing energy production as soon as possible, to welcome this year’s cold season in a position of power both within the Union, but especially in relation to the negotiations that will follow in the east.” says the Executive Director of FPPG, Catalin Nita.

FPPG wishes that, in the near future, its members will contribute significantly to ensuring Romania’s natural gas consumption needs for many years by adding quantities of offshore projects, blocked so far by a law actually meant to facilitate them, but also onshore and deep onshore projects, which can significantly increase energy input to regional needs.

By adding the additional quantities that can be generated, Romania can become the largest producer of natural gas in the European Union, with the closure of the Groningen field in the Netherlands. Thus, the political decision at European level on taxonomy proves to be a high responsibility, and all members of the FPPG will assume their share of responsibility in the coming period, ensuring as much of the needs of citizens regardless of how the situation in the East will evolve.

FPPG also reiterates its full commitment for ongoing consultation with state authorities and assumes its responsibility to facilitate the most constructive dialogue possible between the oil and gas industry and representatives of the decision-making environment.