EU taxonomy, level playing field and competition policy in the energy sector

The chapter gives an overview of how the EU taxonomy works in the energy sector. Some of the EU taxonomy screening criteria will be examined for a selection of energy-related economic activities to examine to what extent the Taxonomy Regulation in realty creates a level playing field in the renewable energy sector. Examples given in the chapter show that there might be a tension between a holistic view on the energy transition towards renewable, low-emission energy and the very detailed approach that the EU taxonomy has as its trade mark. The chapter also shows that creating a technology-neutral legislative framework is challenging, making it difficult to strike a fair balance in the competition between providers of different types of renewable energy. The EU taxonomy is a legal instrument to channel private investments to fund green and sustainable business activities, but the private sector cannot alone take the costs connected to the green shift. Some questions on the outskirts of the EU taxonomy will also be addressed to illustrate that the EU taxonomy influences the development of private and public sectors outside of its formal scope, such as the SMEs taxonomy-inspired disclosure of ESG information on a voluntary basis, state aid and public procurement.