This is an HTML version of an attachment to the Freedom of Information request 'Taxonomy Jan-May 2021'.



Ref. Ares(2021)1446231 - 24/02/2021
 (CAB-VON DER LEYEN)
Subject:
FW: CSO statement and attachments: Why keeping fossil gas out of the EU 
Taxonomy is a must
Attachments:
CBI 7 key points on the EU Taxonomy 100g threshold Feb21.pdf; CBI Hidden 
emissions from gas-fired power Feb21.pdf
 
From: 
 <
@wwf.eu> 
Date: 23 February 2021 at 09:53:25 CET 
To: "
 (CAB-VON DER LEYEN)" <
@ec.europa.eu>, 
 (CAB-VON DER LEYEN)" <
@ec.europa.eu> 
Cc: 
 
@wwf.eu> 
Subject: CSO statement and attachments: Why keeping fossil gas out of the EU Taxonomy is a 
must 
  
Dear 

We have the pleasure to send you a statement from 10 organisations that highlights the need to stick 
to the threshold of 100g CO2/KWh for electricity generation in the EU Taxonomy.  
 
The statement is accompanied by two new very short briefings coordinated by Climate Bond 
Initiative, presenting: 
- Seven key points about the EU Taxonomy’s 100g emissions threshold and why it is the correct 
threshold science-wise 
- The hidden emissions from gas-fired power, due to fugitive methane emissions along the full life 
cycle: 40% of EU gas imports come from Russia, the country with the highest contribution to global 
methane emissions from oil and gas; and 36% of EU gas imports come from the US as liquefied 
natural gas (LNG), a product that uses a further 25% to fuel the process of liquefaction and 
transportation: this extra amount means that the power produced from LNG emits more emissions 
than power from coal. 
 
Please do not hesitate to ask us if you have any questions. With my best regards, 
 
 
Statement about how new unabated gas-fired power has a higher-than-expected GHG 
footprint, compromises EU climate commitments and should be kept out of Taxonomy: 
 
We call on EU member States to maintain the EU TEG’s science-based emissions threshold for 
electricity generation. The robust approach to (unabated) gas for electricity generation in the EU 
Taxonomy is under scrutiny. 
 
The EU Taxonomy proposes a threshold of 100gms CO2/KWh for electricity generation. There is 
pressure to allow a much wider role for unabated gas. 
 
Unabated gas has no long term future as an energy source in the EU and elsewhere, especially as 
methane leaks are much higher than previously thought. As a result it is not certain that gas is better 
than coal. 
 
We call on the European Commission to implement the Technical Expert Group’s 100gms threshold, 
as per the Draft Act published in November 2020. 
 
Signed: 
1

 
, Climate Bonds Initiative 
 
, WWF European Policy Office 
 
, ClimateKIC Advisory Board 
 
, Germanwatch 
 
, Bellona Europa 
 
, Climate Strategy  
 
, Ecos 
 
 
 Transport & Environment 
 
,
 BirdLife Europe 
 
, Climate & Company 
 
 | WWF European 
 | 123 rue du Commerce,1000 Brussels, 
Belgium | EU Transparency Register Nr: 1414929419-24 | Email: 
@wwf.eu | 
 
 www.wwf.eu | @WWFEU | Sign-up to N(EU)WS, WWF Europe monthly newsletter   
 
2




Ref. Ares(2021)1446231 - 24/02/2021
BRIEFING ON THE EU TECHNICAL EXPERT GROUP’S RECOMMENDATION FOR THE EU TAXONOMY ELECTRICITY GENERATION THRESHOLD
7 key points about the EU Taxonomy’s 
    100g emissions threshold 
In March 2020 the EU Technical Expert Group on Sustainable 
Finance (TEG) published its recommendations for an EU 
3 The calculation of the 100g threshold is based on the 
EU targets for future allowed emissions from the power 
Taxonomy for Sustainable Activities.
sector, divided by the expected evolution of electricity 
A key feature of the recommendations around electricity 
demand2.
generation was an emissions threshold of 100g CO e/kWh.  
This calculation, rounded to the nearest 5g, results in a 
2
This is the limit on the intensity of greenhouse gas (GHG) 
threshold value of 100 gCO e/kWh for the power sector. 
2
emissions produced from the generation of electricity, heat and 
The threshold represents the average value of power 
power from hydropower, geothermal energy or gaseous and 
generation emissions between 2020 and 2050 to enable 
liquid fuels. 
the EU to meet the net-zero by 2050 goal.
On 20 November 2020 the European Commission released its 
draft Delegated Act for the EU Taxonomy, which adopted the TEG 
recommendation for an electricity generation threshold.
4 Any one plant can over its lifetime emit only so much 
carbon and still be in line with the Union’s collective Paris 
This briefing details the science behind that 100g threshold.
Agreement goals3.  
1
As we approach 2050, the less of an emissions budget 
  The European Union has adopted a net zero emissions 
we have left, the lower the total carbon that plant can 
target for 2050. This is in line with the recommendations 
emit. The TEG recommended this should reduce every 
of the 2018 report of the Intergovernmental Panel on 
five years, towards zero in 2050.
Climate Change (IPCC). 
This target has also been adopted by a number of other 
5 A given power generator is considered aligned with these 
OECD governments, notably Japan, South Korea, Canada 
policy targets if its emissions are below the 100g average 
and the United Kingdom. 
of annual emission - a “substantial contribution”.
In November 2020 the European Union also adopted an 
For a given investment or activity to be compatible with 
interim target of 55% emission reduction over 1990 levels 
this trajectory, its average emissions over its physical 
by 2030, again in line with recommendations of the IPCC.
lifetime, or 40 years (whichever is shorter), must be 
lower than the threshold.           See points 6 and 7 over page.
2  These targets mean that Europe has a limited carbon  ___________________________________________________________________ 
budget left between now and 2050. Production of CO  in 
2. The formula is based on two key data sets, both specific to the EU: 
2
(1) Historical power sector GHG emissions and electricity demand data, 
Europe was 4,391 million tonnes in 20181.  This must be 
sourced from Eurostat and (2) forecast electricity demand  
net zero by 2050. 
(net generation) found in the “EU 2016 PRIMES Reference Scenario”. De-
___________________________________________________________________ 
tails at http://data.europa.eu/euodp/en/data/dataset/energy-modelling
1. https://www.eea.europa.eu/publications/european-union-green-
3. Power plants can have typical lifetimes of between 15 and over 100 years, 
house-gas-inventory-2020
depending on technology, operating mode and maintenance profile. Forty 
years is the maximum period over which the large majority of power plants 
can reasonably be expected to operate and emit GHGs without some form 
of repowering.
Total EU electricity sector emissions 
100g CO e/kWh*   = 
2
Total projected EU electricity demand
100g
Emissions intensity threshold
e/kWh 2
g CO
0g
2020  
2050  
* Calculated between the period 2024-2063
EU TEG 100g EXPLANATION CLIMATE BONDS INITIATIVE
 1


6 Certain technologies clearly operate below the threshold, 
for example wind, solar and ocean/tidal power. 
7  The 100g threshold ensures the EU will meet its Paris 
Agreement commitments.  European average emissions 
Other technologies such as geothermal, hydropower and 
from the power sector are currently around 270g. To 
bioenergy have a wider range of emissions intensities 
reach net zero by 2050, they will have to follow a rapidly 
(emissions/kWh generated) and will therefore need to 
declining pathway from current levels.
show that their emissions fall below the 100g CO e/kWh 
Any power plant operating below the 100g threshold is 
2
threshold.
consistent with this pathway, and is making a substantial  
Some technologies utilizing natural gas combustion may 
contribution to the EU meeting its Paris commitments.
be able to meet this threshold IF they are able to fully 
Any plant operating above 270g increases average EU 
incorporate carbon capture and storage into the plant, but 
emissions from current levels and risks harming the Paris 
there is a strong burden of proof for those assets seeking 
Agreement.
to make this claim. 
Energy assets that cannot meet this operating threshold 
Although the 100 gCO e/kWh threshold is derived from 
face retirement earlier than their expected operating life, 
2
power sector assumptions, it will apply equally to both 
creating a risk of asset stranding.
electricity and heating/cooling generation.
Implications of the 100g threshold
The Takeaway 
-  Unabated natural gas-fired power generation is not expected 
to meet the required threshold. Gas-fired power with carbon 
A power plant operating below 100g CO e/
capture and sequestration may qualify.
2
kWh over its lifetime is making a substantial 
-  Blended gas-fired power: co-combustion of multiple gases for 
the production of electricity, heat/cool and co-generation is 
contribution to reaching Paris Agreement 
also subject to the emissions intensity threshold. This includes 
targets. 
combustion of RED II gases.
-  Hydropower: the embedded emissions associated with the 
Any power plant that emits more than 270g 
construction of hydropower facilities and the alteration 
CO e/kWh is making this more difficult.
of landscapes constitutes a significant portion of lifecycle 
2
analysis emissions. Such emissions can be compensated 
for by a complementary emissions reduction activity as 
This briefing has been in prepared as background to the EU Technical Expert 
mentioned above.
Group’s sustainable taxonomy recommendations on electricity generation 
thresholds. It has been prepared by John Sinner of the European Investment 
-  Although the EU Taxonomy focuses on non-solid fossil fuel 
Bank and Lionel Mok, Annika Sandback, Jason Godfrey and Sean Kidney from 
and renewable power, the DNSH to mitigation criteria are 
the Climate Bonds Initiative. February 2021. www.climatebonds,net
technology agnostic.
Provides a significant contribution  
Provides a negative contribution  
to the EU Carbon budget  
to the EU Carbon budget  
over life of the project
over life of the project
100g CO e/kWh
2
Carbon Capture & Storage (CCS) Gas
Solar
Greenfield Gas
Geothermal
Wind
Coal
Hydropower
Ocean/Tidal
Sustainable Biomass
EU TEG 100g EXPLANATION CLIMATE BONDS INITIATIVE
 2




Ref. Ares(2021)1446231 - 24/02/2021
THE TRUE STORY ABOUT METHANE  EMISSIONS FROM GAS-POWERED ELECTRICITY GENERATION / EU TAXONOMY BRIEFING 
The Hidden Emissions  
from Gas-Fired Power 
There is a major risk that investment in gas is a threat to 
Atmospheric Administration (NOAA).2 This is a cause 
achieving the goals of the Paris Agreement. 
for concern because methane is exceptionally good at 
Evidence is emerging that greenhouse gas (GHG) emissions from 
absorbing heat. It warms the planet much more quickly 
gas-fired power are much closer to coal than previously realised.
than CO2. If the impact of emitting the two gases is 
compared over a 20 year period, methane has 84 times 
Expected GHG emissions savings from using natural gas instead 
the impact of CO2.3  
of coal have been exaggerated. Such claims have been based 
solely on a plant-by-plant comparison between coal and gas-fired 
If gas leaks more than 3% of its methane content,  
2.
power; they do not include the gas supply chain, which is a signif-
it is worse for the climate than coal.4
icant omission. Gas is lost at the wellhead and through equip-
ment along the transportation route. While the percentage is a 
Methane can be lost from production wells, pneumatic 
small number, because gas is mostly methane, even tiny amounts 
devices, and valves along transportation routes. In urban 
have a significant impact on climate.
areas, gas distribution networks can also be a source of 
methane leaks. 
There are four key points:
When well-to-plant methane emissions are included in 
Methane matters because its impact on climate change 
comparisons of gas- and coal-fired power, the benefits of 
1. is 84 times greater than CO2.1
gas against coal are typically only marginal. 
Methane levels have been increasing steadily since 
BUT if methane leaks total more than 3% of gas’s content, 
1985, according to data from the National Oceanic and 
generating power with gas is worse for the climate than coal.
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Climate Bonds Initiative. February 2021. www.climatebonds.net. 
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“We have no room to build anything  
Europe imports a further 36% as liquefied natural gas10 
that emits CO
(LNG) - a product that uses as much as a further 25% to 
2 emissions.”
fuel the process of liquefaction and transportation.11 This 
Fatih Birol, Executive Director, International Energy Agency5
extra amount means that total power produced from LNG 
emits more GHG than power from coal.  
Global Methane Emissions Are Increasing
Ireland’s Parliament has heard evidence12 that the GHG 
footprint of LNG imported from the US to Ireland would be 
2000
44% higher than coal’s.
) 1500
 ppb
“Without an end to the  
4
use of unabated fossil fuels,  
CH 1000
we will not be able to reach 
the climate targets. To put it 
mildly, gas is over.”13 
Methane ( 500
Werner Hoyer, President,  
1600
1700
1800
1900
2000
Source: NOAA. https://www.esrl.noaa.gov/gmd/ccgg/trends_ch4/ 
European Investment Bank
Methane emissions attributable to oil and gas 
3. production are up to 40% higher than thought.6
Maintaining EU Climate Leadership
At its most fundamental level, the extraction and use 
We are in a climate crisis. The pace at which economies 
of fossil fuels is a larger methane emitter than had 
decarbonise will determine the world we inhabit by the end  
been understood. In 2020, the journal Nature published 
of this century. 
a ground-breaking study of the carbon signatures of 
methane in ice cores.
The EU Taxonomy’s robust approach to electricity generation 
7 These signatures allowed for 
identification of various methane sources. (Methane 
is under scrutiny. There is pressure to allow a much wider role 
produced by the extraction and use of fossil fuels has 
for unabated gas, which risks compromising the EU’s climate 
a different radiocarbon signature to methane produced 
commitments and locking in high levels of GHGs for a generation. 
from other natural geological sources such as seeps and 
The alternative is to fully back Europe’s science-based 2030 
mud volcanoes.) 
emission reduction targets and enable European industry  
This research found that emissions from fossil fuel production  to focus on the opportunity to lead a rapid global shift to  
are 25% to 40% higher than previously understood.
a green economy. 
The study’s lead author, Benjamin Hmiel, explained, 
“We’ve identified a gigantic discrepancy that shows 
the industry needs to, at the very least, improve their 
monitoring. If these emissions are truly coming from oil, 
gas extraction, production use, the industry isn’t even 
reporting or seeing that right now.”8
The EU imports most of its gas, increasingly in the form 
4. of highly inefficient LNG, and always from sources with 
high methane footprints.  
Nearly 40% is sourced by pipe from Russia9 - the country 
with the highest contribution to global methane emissions 
from the oil and natural gas sector. 
Estimated global methane emissions from oil and natural gas
Footnotes
1. https://www.ipcc.ch/report/ar5/wg1/
2. https://www.esrl.noaa.gov/gmd/ccgg/trends_ch4/
3. https://www.ipcc.ch/report/ar5/wg1/
Germany
4. https://webstore.iea.org/download/direct/1055?fileName=World_Energy_
Outlook_2017.pdf
India
5. https://www.theguardian.com/business/2018/nov/13/world-has-no-capacity-to-
absorb-new-fossil-fuel-plants-warns-iea
6. https://www.nature.com/articles/s41586-020-1991-8
Kuwait 
7. Ibid
8. https://www.nytimes.com/2020/02/19/climate/methane-flaring-oil-emissions.html
Russia
9. https://ec.europa.eu/eurostat/statistics-explained/pdfscache/46126.pdf
10. Ibid
United States
11. https://publications.jrc.ec.europa.eu/repository/bitstream/JRC47887/eur%20
23818%20en.pdf
12. https://data.oireachtas.ie/ie/oireachtas/committee/dail/32/joint_committee_on_
0
50
100
150
200
250
300
climate_action/submissions/2019/2019-10-10_opening-statement-robert-w-howarth-ph-
d-cornell-university_en.pdf
MMTCO2E
Source: EPA
13. https://www.eig.org/en/events/annual-press-conference-2021
Climate Bonds Initiative. February 2021. www.climatebonds.net 
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