European nuclear alliance seeks ways to finance new projects

Earlier this week, the nuclear alliance met for the first time, with Bulgaria, Croatia, the Czech Republic, Finland, France, Hungary, the Netherlands, Poland, Romania, Slovakia, Slovenia and Sweden taking part. According to information provided by the news website Euractiv, the meeting focused on a call to end financial discrimination against low-carbon nuclear energy and discussions about possible ways to finance nuclear projects. Italy and Belgium, which currently holds the rotating presidency of the Council of the EU, attended as observers.

The nuclear alliance meeting resulted in a statement saying that pro-nuclear countries have an incentive to establish working groups on European instruments aimed at deploying nuclear reactors in the EU. The aim is to explore the possibilities and benefits of financial instruments such as support from the European Investment Bank (EIB), the Innovation Fund or “Important Projects of Common European Interest.”

Although the nuclear alliance has yet to act as a unified bloc speaking with one voice, recent months have seen growing recognition of the benefits of nuclear energy, particularly through the Net Zero Industry Act, which aims to stimulate the industries needed for Europe’s transition. The European Commission’s support for the development of small modular reactors (SMRs) and the official launch of an industrial alliance to develop SMRs in Europe are also important. Calls are increasingly being heard for the EIB to focus on more effective and generous financing, particularly for research.

What about the EIB?

Investments in nuclear energy are not expressly prohibited or significantly regulated within the EIB’s remit. The way the EIB has financed projects in recent years, however, suggests that the institution has not been particularly supportive of these types of projects.

That could all change with the arrival of former Spanish Deputy Prime Minister Nadia Calviño, who was appointed to head the EIB at the beginning of 2024. Calviño has made clear that she favors financing nuclear energy, particularly SMRs. Financing larger reactors, however, looks set to face opposition from some countries, since such an investment decision requires the approval of all member states.

Shared interest

The nuclear alliance also backed the principle of an Important Project of Common European Interest (IPCEI) for nuclear energy. This could cover research infrastructure, fuel production and SMRs.

Being granted this status makes it easier for member states to finance projects by relaxing state aid rules. IPCEIs already exist for hydrogen, batteries and solar energy.