The challenges concern the EU's sustainable finance taxonomy, a system that restricts which investments can be labelled as climate-friendly, and which the EU hopes investors will use to guide more capital to low-carbon projects.
The Commission is facing the threat of separate legal action from some EU countries over a second set of taxonomy rules, unveiled this week, that would label gas and nuclear investments as green - although those rules have yet to enter into force.A group of NGOs led by the non-profit Partnership for Policy Integrity and the Lifescape Project also asked the Commission to review the bioenergy rules on Wednesday.
"The Commission is currently encouraging investment into biomass under a false label of sustainability, disregarding the clear scientific warnings over the harm it will cause to the climate and biodiversity," ClientEarth lawyer Filippo Mattioli said.