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The European Parliament voted on Wednesday to back the proposal to label natural gas and nuclear energy as "green" despite strong opposition from many lawmakers and environmentalists decrying the plan as "greenwashing".
The proposal to label gas and nuclear power plants as climate-friendly investments was first circulated by the European Commission last December as part of its so-called EU Taxonomy.
A motion to block the proposal on Wednesday received only 278 votes in favor among the MEPs, with 328 against and 33 abstentions. A total of 353 votes were needed in order to reject the proposal in the 705-seat parliament.
The majority of MEPs from the center-right European People's Party, the largest group in parliament, and the majority of the centrist Renew Europe Group supported the new labeling, while most of the MEPs from the Greens and Social Democrats opposed the commission proposal.
Now it is up to member states to decide their fate. Unless 20 of the 27 EU member states are against the proposal, it will become law in the bloc next year.
The European Commission welcomed the results of the vote. In a statement, it said gas and nuclear will now be included in the EU Taxonomy as transitional activities in a limited number of circumstances and under strict conditions.
Mairead McGuinness, the European commissioner in charge of financial services, financial stability and capital markets union, said the proposal is a pragmatic one to ensure that private investments in gas and nuclear, needed for energy transition, meet strict criteria.
"Investment in renewables is already prioritized in our taxonomy," she said.
Thomas Waitz, an MEP from Austria and co-chair of the European Green Party, mocked the proposal.
"If gas and nuclear are sustainable, fries are salad," he wrote in a tweet right before Wednesday's vote.
Austria and Luxembourg have already threatened to sue the European Commission for the green labeling at the European Union court.
Young Swedish climate activist Greta Thunberg said the vote on Wednesday will "delay a desperately needed real sustainable transition and deepen our dependency on Russian fuels".
Key EU member states were split initially on the proposal, with support voiced by France but rejection by Germany.
France has 56 nuclear reactors and generates 70 percent of its electricity from nuclear energy, the highest in the world. Germany is still moving forward on its promise to phase out its nuclear power plants by the end of this year, despite renewed debate on the issue amid the worsening energy crisis. The German Green Party, a key player in the coalition government, has long argued that the environmental hazards caused by the disposal of nuclear waste far exceed the benefits.
Agencies contributed to this story.