In January, we asked the European Commission to remove polluting planes and (cruise) ships from their green investment list. But they stand by their decision. That is why we are now launching a legal case at the European Court – together with four other European legal and climate organisations, and with the support of 35,000 people in Europe.
What is the green ‘taxonomy’ list, and why is it important?
The EU wants to move more money to go to climate solutions. In fact, 3 to 6 times more money should go to climate solutions to meet climate targets – and thus keep a livable planet within reach.
That is why the EU has set up a list of sustainable activities, the “Taxonomy”, which form a set of clear guidelines for banks, pension funds and other investors on how sustainable their investments actually are. For example, it states that investing in wind farms is sustainable, while investing in a coal-fired power plant is not. This also makes it easier for the climate solutions on this list to get money, and often at a cheaper interest rate.
Research shows that 440 billion euros of sustainable investments were already reported last year based on activities found on this list, and banks are actually starting to use the Taxonomy in their investment strategies. We can conclude that this list is becoming increasingly important.
What is going on with planes and (cruise) ships?
Aeroplanes and (cruise) ships run on massive amounts of fossil fuels, making them extremely polluting. Even though the aviation sector now mixes in about 1% of alternative fuels, they still fly around with over 99% fossil fuels. Even though new cruise ships now often run on liquified gas, this too emits a lot of CO2 and also leaks massive amounts of methane gas – a greenhouse gas that is up to 80x more potent than CO2. So how did they end up on the list of green investments?
The EU expands the list of green investments every year. This is good news, but also an opportunity for (fossil) lobbyists who lobby for their own business activities. Last year this happened: aviation and shipping lobbyists have successfully lobbied to get new aeroplanes and (cruise) ships – which still run on fossil fuels – on this list.
So if an airline like KLM wants to replace a plane or a big shipping company wants to buy a new cruise ship, it will become easier for them to get a loan, and probably with lower interest rates.
This is greenwashing at a high-level. By making investments in polluting planes and ships financially cheaper, the EU ensures that we will be stuck with fossil transport for decades to come. Moreover, it means that less money will go towards real climate solutions.
What have you done already?
When the EU published the new sustainability criteria for aeroplanes and ships in 2023, we, in a coalition of NGOs, made an official request to the European Commission to reconsider the criteria. We also started a petition, signed by over 37,000 people across Europe.
Why is the EU keeping ships and planes on the green list?
Unfortunately, in June 2024, the European Commission stood by their decision to keep highly polluting aeroplanes and cruise ships on the green list.
Their argument? Supposedly there are reports showing that the aviation and shipping sector is doing a good job in becoming climate neutral towards 2050. In doing so, they fail to mention that many of the planes and (cruise) ships will continue to run on fossil fuels for the next 20 to 50 years. Nor do they mention that these reports were written by fossil lobbyists.
This is unacceptable. The Taxonomy only works if it includes real climate solutions. Just like a new, slightly more efficient coal-fired power plant is still not sustainable, neither is a slightly more efficient aeroplane or ship running on fossil fuels.
What are we going to do next?
We have taken the case to court on the 27th of August, together with our European partner organisations Opportunity Green, Dryade, ProtectOurWinters Austria and CLAW. We demand that the European Commission takes fossil fueled planes and ships off their green list.
Will you help us?