Natural gas is the transition fuel of choice. Should it be included in the EU Green Taxonomy as a result, since it needs new capital? In a new research note, we show that excluding gas generation from the taxonomy would not increase its cost of capital and thus not create any risk of underinvestment in the `transition fuel’ of choice. Conversely, including gas in the Green Taxonomy creates a genuine price distortion and a perverse incentive to limit future investments in renewable energy technologies.

You can now read the full ’Thought Leadership’ articles at the link below