Gas and nuclear power as transition technologies: What does this mean for investments

So far, the applications of the Taxonomy are purely for transparency and disclosure purposes. Professional investors and regulators instead rely on more advanced and context-specific metrics, such as their own ESG methodologies and cockpits. Therefore, the controversial Taxonomy classification of gas and nuclear power will not have a major impact. Green finance policies are no substitute for restrictive environmental regulations such as cap-and-trade schemes or outright prohibitions of certain activities.