Social Europe

  • EU Forward Project
  • YouTube
  • Podcast
  • Books
  • Newsletter
  • Membership

Green taxonomy: traffic-light coalition flashes amber

Isabel Schatzschneider 26th January 2022

The EU’s controversial proposal to label nuclear energy ‘green’ could jeopardise the future of the German coalition.

German coalition,traffic-light coalition,Scholz,Baerbock,gas,nuclear,Nord Stream 2
The present is a bit tricky, though, for the Greens (Asgat/shutterstock.com)

It’s been less than a month since France took over the presidency of the Council of the EU. Yet the two European powerhouses, France and Germany, have already locked horns over a controversial proposal which labels natural gas and nuclear energy as ‘green’.

While the French president, Emmanuel Macron, has voiced his support for the integration of nuclear into the EU’s taxonomy of green investments—describing it as the ‘sovereign solution’—Germany has ‘expressly rejected’ these plans. Critics fear that ‘sovereignty’, as articulated by the French government, includes a neoliberal element and an increased risk of corporate capture of EU policy-making.

The proposal was sent to the member states late on New Year’s Eve—the same day Germany shut down half of its six remaining nuclear plants—and quietly published the following day. If approved by the EU, it could channel billions of euro into the construction of new nuclear plants across the continent.

Shock waves

Besides pitting the two European giants against each other, the proposal has sent shock waves through other EU member states.

In addition to Germany, Austria, Denmark, Luxembourg and Spain have opposed the inclusion of nuclear in the taxonomy. Yet, alongside France, Bulgaria, Croatia, the Czech Republic, Finland, Hungary, Poland, Romania, Slovakia and Slovenia seek to rely on nuclear power. Many member states have kept silent.

The opposition has however been vocal. Last Friday, Austria and Luxembourg implied that they would be willing to fight the notion of ‘green’ nuclear energy in court and, the next day, the German ‘traffic light’ coalition voiced its objections in a formal letter to the EU.



Don't miss out on cutting-edge thinking.


Join tens of thousands of informed readers and stay ahead with our insightful content. It's free.



Coalition shaken

Germany’s objection to nuclear power doesn’t come as a surprise, with the Greens holding key ministerial positions in the social-democrat-led coalition. But the EU proposal has shaken the unity of the German political front.

Before the government issued its official stance, the Greens had already accused the new chancellor, Olaf Scholz, of betraying their interest by striking a deal with Macron to grant a green label for nuclear, in return for the same for gas—on which Germany heavily relies. A hashtag #OlafSchummelt (Olaf cheats) made the rounds on Twitter and was used by German Greens.

Their party—born out of the 1970s and 80s anti-nuclear movement—is the second largest in the coalition and essential for the future of the government. The vice-chancellor, the Greens’ Robert Habeck, has already complained of EU ‘greenwashing’. Therefore, Scholz’s response could be seen as an attempt to preserve a united front to the rest of Europe, while his coalition is in hot water.

Habeck, who is also the minister for economic affairs and climate action, said the EU proposal ‘waters down a good sustainability label’—a view he conveyed to the president of the European Commission, Ursula von der Leyen, at a meeting last night in Brussels. Not all coalition partners have however been so critical: the vice-chair of the neoliberal Free Democrats, Wolfgang Kubicki, went so far as to say that ‘you’re not a good European if you only accept decisions that suit you’.

Tensions escalating

The feud between France and Germany comes at a fragile time for the German coalition, which has already admitted that it will ‘probably’ miss its climate targets in 2022 and 2023. In phasing out nuclear, much of the shortfall will be made up by burning natural gas—which is at record high prices—until renewables are able to fill the gap later this decade.

With tensions escalating between Russia and western powers over Ukraine, this puts Germany in a tough spot with its main gas supplier and raises concerns about the security of supply. Last week the minister for foreign affairs, the Greens’ Annalena Baerbock, visited Russia and Ukraine, declaring that Russia would pay a ‘high price’ for any attack on the country. Baerbock accused Russia of ‘blackmail’ in causing high energy prices across Europe.

Germany has played a major role in the construction of Nord Stream 2, a second German-Russian gas pipeline under the Baltic Sea—which Baerbock strongly opposed back in May. In July, when Berlin and Washington reached a deal allowing completion of the pipeline, she declared that it was not only ‘wrong for climate policy reasons’ but also ‘geo-strategically’. In Ukraine the pipeline is seen as reducing the need for overland transit of Russian gas, enhancing Russia’s room for military manoeuvre.

Ground to make up

Critics have also pointed out that to commit to its 2030 phase-out of coal Germany may need to rely on French nuclear energy. The recommendations in 2019 of its Kohlecommission, accepted by the then grand-coalition government, left a lot of ground to make up.

Due to the EU’s integrated energy system, Germany would still be able to import the power generated by France’s nuclear sector, which Macron is keen to expand. Macron’s defence for nuclear energy is that among energy sources it ‘emits the least CO2’.

Germany has however been adamant in its opposition to nuclear power—calling it ‘dangerous’, given the challenge of waste remaining radioactive for thousands of years. Germany has been home to one of the most consistent anti-nuclear movements in the world.

The coalition’s ambitious climate agenda is hobbled by the legacy of prevarication during the long era of Angela Merkel as Christian-democrat chancellor. Merkel—famously labelled the ‘climate chancellor’—was stuck between powerful coal and car industries, which limited her achievements. Now the new coalition is changing gear: it has promised to have at least 15 million electric vehicles on German roads by 2030. This against the backdrop of the unique failure of the transport sector to curb greenhouse-gas emissions since the 1990s.

Decarbonisation of German transport won’t be an easy road and is likely to stretch the capabilities of the new coalition even further. Here, sustainable biofuels could ease the challenging transition for the car-loving nation. An example comes from Malaysia, where the MSPO scheme ensures biofuel production adheres to strict environmental regulations, with roughly 93 per cent of the country’s palm oil certified sustainable.

Hard to reconcile

It seems the Greens are stuck between a rock and a hard place, with their hard-line approach to nuclear yet needing to rely on Russian natural-gas supply. The disagreements between German coalition parties reveal different ideological standpoints which may be hard to reconcile. If followed through, the EU proposal could possibly jeopardise the future of the new government, which would represent a major political blowback for the Greens.

Anti-nuclear countries are unlikely to gain a sufficient majority to veto the commission’s draft proposal: it would take the objection of at least 20 member states, representing 65 per cent of the EU population. The commission had given experts until last Friday to provide feedback and the final version could be revealed at any moment.

The coming days will show whether the German government has managed to move the needle on the EU debate on nuclear energy. Whatever the result, one cannot blame ministers for not trying—even at the expense of revealing cracks in the new coalition set-up.

Isabel Schatzschneider 1
Isabel Schatzschneider

Isabel Schatzschneider is an environmental activist and commentator on EU environment policy. She is a research associate at the Friedrich-Alexander University, Erlangen-Nüremberg. Previously she was a researcher at the Schweisfurth Foundation in Munich.

Harvard University Press Advertisement

Social Europe Ad - Promoting European social policies

We need your help.

Support Social Europe for less than €5 per month and help keep our content freely accessible to everyone. Your support empowers independent publishing and drives the conversations that matter. Thank you very much!

Social Europe Membership

Click here to become a member

Most Recent Articles

u4219834dafae1dc3 2 EU’s New Fiscal Rules: Balancing Budgets with Green and Digital AmbitionsPhilipp Heimberger
u42198346d1f0048 1 The Dangerous Metaphor of Unemployment “Scarring”Tom Boland and Ray Griffin
u4219834675 4ff1 998a 404323c89144 1 Why Progressive Governments Keep Failing — And How to Finally Win Back VotersMariana Mazzucato
u42198346ec 111f 473a 80ad b5d0688fffe9 1 A Transatlantic Reckoning: Why Europe Needs a New Pact Beyond Defence SpendingChristophe Sente
u4219834671f 3 Trade Unions Resist EU Bid to Weaken Corporate Sustainability LawsSocial Europe

Most Popular Articles

u4219834647f 0894ae7ca865 3 Europe’s Businesses Face a Quiet Takeover as US Investors CapitaliseTej Gonza and Timothée Duverger
u4219834674930082ba55 0 Portugal’s Political Earthquake: Centrist Grip Crumbles, Right AscendsEmanuel Ferreira
u421983467e58be8 81f2 4326 80f2 d452cfe9031e 1 “The Universities Are the Enemy”: Why Europe Must Act NowBartosz Rydliński
u42198346761805ea24 2 Trump’s ‘Golden Era’ Fades as European Allies Face Harsh New RealityFerenc Németh and Peter Kreko
startupsgovernment e1744799195663 Governments Are Not StartupsMariana Mazzucato
u421986cbef 2549 4e0c b6c4 b5bb01362b52 0 American SuicideJoschka Fischer
u42198346769d6584 1580 41fe 8c7d 3b9398aa5ec5 1 Why Trump Keeps Winning: The Truth No One AdmitsBo Rothstein
u421983467 a350a084 b098 4970 9834 739dc11b73a5 1 America Is About to Become the Next BrexitJ Bradford DeLong
u4219834676ba1b3a2 b4e1 4c79 960b 6770c60533fa 1 The End of the ‘West’ and Europe’s FutureGuillaume Duval
u421983462e c2ec 4dd2 90a4 b9cfb6856465 1 The Transatlantic Alliance Is Dying—What Comes Next for Europe?Frank Hoffer

ETUI advertisement

HESA Magazine Cover

With a comprehensive set of relevant indicators, presented in 85 graphs and tables, the 2025 Benchmarking Working Europe report examines how EU policies can reconcile economic, social and environmental goals to ensure long-term competitiveness. Considered a key reference, this publication is an invaluable resource for supporting European social dialogue.

DOWNLOAD HERE

Eurofound advertisement

Ageing workforce
The evolution of working conditions in Europe

This episode of Eurofound Talks examines the evolving landscape of European working conditions, situated at the nexus of profound technological transformation.

Mary McCaughey speaks with Barbara Gerstenberger, Eurofound's Head of Unit for Working Life, who leverages insights from the 35-year history of the European Working Conditions Survey (EWCS).

Listen to the episode for free. Also make sure to subscribe to Eurofound Talks so you don’t miss an episode!

LISTEN NOW

Foundation for European Progressive Studies Advertisement

Spring Issues

The Summer issue of The Progressive Post is out!


It is time to take action and to forge a path towards a Socialist renewal.


European Socialists struggle to balance their responsibilities with the need to take bold positions and actions in the face of many major crises, while far-right political parties are increasingly gaining ground. Against this background, we offer European progressive forces food for thought on projecting themselves into the future.


Among this issue’s highlights, we discuss the transformative power of European Social Democracy, examine the far right’s efforts to redesign education systems to serve its own political agenda and highlight the growing threat of anti-gender movements to LGBTIQ+ rights – among other pressing topics.

READ THE MAGAZINE

Hans Böckler Stiftung Advertisement

WSI Report

WSI Minimum Wage Report 2025

The trend towards significant nominal minimum wage increases is continuing this year. In view of falling inflation rates, this translates into a sizeable increase in purchasing power for minimum wage earners in most European countries. The background to this is the implementation of the European Minimum Wage Directive, which has led to a reorientation of minimum wage policy in many countries and is thus boosting the dynamics of minimum wages. Most EU countries are now following the reference values for adequate minimum wages enshrined in the directive, which are 60% of the median wage or 50 % of the average wage. However, for Germany, a structural increase is still necessary to make progress towards an adequate minimum wage.

DOWNLOAD HERE

S&D Group in the European Parliament advertisement

Cohesion Policy

S&D Position Paper on Cohesion Policy post-2027: a resilient future for European territorial equity

Cohesion Policy aims to promote harmonious development and reduce economic, social and territorial disparities between the regions of the Union, and the backwardness of the least favoured regions with a particular focus on rural areas, areas affected by industrial transition and regions suffering from severe and permanent natural or demographic handicaps, such as outermost regions, regions with very low population density, islands, cross-border and mountain regions.

READ THE FULL POSITION PAPER HERE

Social Europe

Our Mission

Team

Article Submission

Advertisements

Membership

Social Europe Archives

Themes Archive

Politics Archive

Economy Archive

Society Archive

Ecology Archive

Miscellaneous

RSS Feed

Legal Disclosure

Privacy Policy

Copyright

Social Europe ISSN 2628-7641

BlueskyXWhatsApp