The General Court of Luxembourg published its ruling on September 30, 2026, regarding the EU's green investment classification regulations in the shipping and aviation sectors. This ruling states that part of the shipping classification criteria is illegal. This action represents stricter limitations for the European Commission in determining rules related to green investments.
The Need to Set Limits on Methane Emissions
In this ruling, the court annulled part of the European Commission's rejection of an internal review request, as the Commission had not set any limits on methane emissions from polluting ships. This decision means that the European Commission is now required to establish a measurable limit for methane emissions. This action sends a strong message to all sectors, including the shipping industry, indicating that gas as a transitional fuel cannot be considered clean.
Read more: Ministry of Oil Employees Participated in a Day Without a Car Campaign
Concerns About Aviation Criteria
However, this ruling did not reject any of the aviation-related criteria and allows the Commission to set the criteria as it sees fit. This leaves our main concern unanswered: airplanes and fossil-fuel-powered ships should not be identified as sustainable investments, as their financing harms the environment and poses serious risks in terms of greening.
David Key, Legal Director at Opportunity Green, stated: "We welcome the court's ruling regarding the illegality of parts of the shipping classification criteria. This ruling emphasizes that the powers of the European Commission are not unconditional and are subject to strict investment classification laws."
This ruling comes particularly after a coalition of NGOs had approached the court in August 2024 against the European Commission's decision to include high-polluting airplanes and ships in the EU's sustainable finance regulations. This coalition includes organizations such as Dryade, Fossielvrij NL, and Protect our Winters Austria, which, with the support of over 44,000 concerned citizens, are seeking changes in the classification laws.
Read more: EPA Allows Increase of 123 Million Tons of CO2 · U.S. Government Approves New Fuel Economy Standards for Vehicles
