BRUSSELS—Brushing aside charges of greenwashing, the European Union will press ahead with a controversial proposal to label certain nuclear energy and natural-gas investments as sustainable over the coming years despite strong opposition from some of the bloc’s member states, environmental groups and investors.
The proposal to expand what can qualify as a sustainable source of energy has exposed deep rifts between countries that rely on different technologies and comes amid surging electricity prices. Nuclear and natural gas are just two high-profile components of a plan that will affect a range of industries—from forestry to manufacturing and transportation—and is meant to shift the ways companies and investment funds approach sustainable investment.