Energy

The energy sector sits at the heart of the EU's decarbonisation strategy and is one of the most detailed sectors in the Taxonomy. With 15 eligible activities, it covers the full energy value chain -- from generation through transmission and distribution to storage.

Renewable energy sources including solar PV, onshore and offshore wind, hydropower, and geothermal are covered, along with enabling infrastructure such as electricity grids, district heating networks, and battery storage. The Taxonomy sets strict lifecycle emission thresholds for power generation, currently at 100g CO2e/kWh, which effectively excludes unabated fossil fuel generation.

Adaptation criteria require energy infrastructure operators to conduct climate vulnerability assessments covering risks such as extreme heat (which reduces thermal plant efficiency), flooding (which threatens substations and grid infrastructure), and wind pattern changes (which affect renewable output). Operators must implement adaptation solutions that are proportionate to the identified risks and consistent with regional climate projections.