Private investment in gas power generation will be classed as “transitional” provided the plants use an increasing share of cleaner fuels like biogas or hydrogen, under the act approved by commissioners.
The decision had been fiercely fought over by EU member states.
The International Energy Agency has said that, if global warming is to be held to 1.5C, the amount of electricity produced with gas should peak around 2030 and fall dramatically by 2040.
Many countries are looking into green taxonomies and will consider the EU’s precedent.
Russia’s taxonomy effectively excludes most gas power by restricting the green label to projects with lifecycle emissions of less than 100g of carbon dioxide per kilowatt hour.
The EU, and Germany in particular, have been accused of hypocrisy over the decision.
France, which gets most of its electricity from nuclear, led the push for its inclusion.
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