Production of Electricity from Gas (not exclusive to natural gas)

Climate change mitigation:

• Support a transition to a net-zero emissions economy • Avoidance of lock-in to technologies which do not support the transition to a net-zero emissions economy • Ensure that economic activities meet best practice standards • Ensure equal comparability within an economic activity with regards to achieving net-zero emissions economy target • Where necessary, incorporating technology-specific considerations into secondary metrics and thresholds

Metric and threshold:

Any electricity generation technology can be included in the taxonomy if it can be demonstrated, using an ISO 14067 or a GHG Protocol Product Lifecycle Standard compliant. Product Carbon Footprint (PCF) assessment, that the life cycle impacts for producing 1 kWh of electricity are below the declining threshold. A full PCF shall be applied, using project specific data where relevant and shall be subjected to review. This assessment should include actual physical measurements, i.e. methane leakage measurements across gas extraction, transport and storage systems.

Declining threshold: 

Facilities operating at life cycle emissions lower than 100gCO2e/kWh, declining to 0gCO2e/kWh by 2050, are eligible. This threshold will be reduced every 5 years in line with a net-zero CO2e in 2050 trajectory. Assets and activities must meet the threshold at the point in time when taxonomy approval is sought, for activities which go beyond 2050, it must be technically feasible to reach net-zero emissions. Facilities that will incorporate any form of abatement (e.g. CCS, Co-firing, other…) must show that the abatement activity is eligible under the Taxonomy. Electricity generation from other fossil-fuel based gases would be eligible under the Taxonomy, subject to meeting the declining emissions threshold. Combined Heat and Power is covered under Construction and operation of a facility used for cogeneration of heat/cooling and Power threshold.

An over-arching, technology-agnostic emissions threshold of 100g CO2e / KWh is proposed for the electricity generation. This threshold will be reduced every 5 years in line with a trajectory to net-zero CO2e in 2050.

Climate change mitigation do no significant harm:

The key environmental aspects to be taken into account when investing in this activity are the impact on local water (consumption and sewage), the fulfilment of the applicable waste and recycling criteria, the NOx and CO emissions control in line with BREF indicators and the avoidance of direct impacts on sensitive ecosystems, species or habitats.

• Refer to the screening criteria for DNSH to climate change adaptation.

• Identify and manage risks related to water quality and/or water consumption at the appropriate level. Ensure that water use/conservation management plans, developed in consultation with relevant stakeholders, have been developed and implemented. • In the EU, fulfil the requirements of EU water legislation.

Based on legislation:

General reference to EU legislation

Ensure emissions to air, water and soil are prevented / minimized by employing the techniques included in the reference documents for the Best Available Techniques (BAT) – so-called BREF(s)) – concerning the activity in question or other techniques that provide for an equivalent level of environmental protection. The Emission Limit Values set should be in line with the lower end of the BAT-AEL ranges included therein, ensuring at the same time that no significant cross-media effects occur .

Based on legislation:

BREF (large combustion plants)

Ensure an Environmental Impact Assessment (EIA) has been completed in accordance with the EU Directives on Environmental Impact Assessment (2014/52/EU) and Strategic Environmental Assessment (2001/42/EC) or in the case of activities located in non-EU countries other equivalent national provisions or international standards for activities in non-EU countries (e.g. IFC Performance Standard 1: Assessment and Management of Environmental and Social Risks) – including ancillary services, e.g. transport infrastructure and operations). Ensure any required mitigation measures for protecting biodiversity/eco-systems have been implemented. For sites/operations located in or near to biodiversity-sensitive areas (including the Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (KBAs), as well as other protected areas), ensure that an appropriate assessment has been conducted in compliance with the provisions of the EU Biodiversity Strategy (COM (2011) 244), the Birds (2009/147/EC) and Habitats (92/43/EEC) Directives or in the case of activities located in non-EU countries, other equivalent national provisions or international standards (e.g. IFC Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources) – based on the conservation objectives of the protected area. For such sites/operations, ensure that: • a site-level biodiversity management plan exists and is implemented in alignment with the IFC Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; • all necessary mitigation measures are in place to reduce the impacts on species and habitats; and • a robust, appropriately designed and long-term biodiversity monitoring and evaluation programme exists and is implemented.

Based on legislation:

Directives on Environmental Impact Assessment (2014/52/EU) Strategic Environmental Assessment (SEA) Directive Birds Directive Habitats Directive

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