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Court upholds EU Commission green finance label for bioenergy

By Thomson Reuters Mar 18, 2026 | 8:09 AM

BRUSSELS, March 18 (Reuters) – The European Union’s second-highest court on Wednesday rejected an appeal seeking ​to force the European ‌Commission to review its decision to label investments in bioenergy as sustainable, in a case brought by campaign ‌groups ​who argued the ⁠fuel is not ⁠climate‑friendly enough to merit the label.

In its ruling, the General Court of the Court of Justice ​of the EU sided fully with the Commission and ⁠upheld all parts ⁠of its decision. The ​judges found that the Commission could ​not be faulted for declining to ‌align the “taxonomy” criteria with Paris climate agreements obligations beyond what EU law requires.

Bioenergy is derived ⁠from burning wood or other biomass such as crop residues and animal waste. ⁠Alongside ‌wind and solar power, ⁠it is among the ​energy ‌sources labeled as sustainable ​by the ⁠EU’s taxonomy system, which restricts which investments can be labeled as climate-friendly.

(Reporting by Gianluca Lo Nostro and Kate Abnett; Editing by ​Hugh Lawson)