The European Union (EU) is initiating a significant shift toward nuclear energy with a clear political commitment and concrete initiatives. This strategic pivot occurs amidst growing economic, geopolitical, and energy transition challenges.
After a decade dominated by investments in renewable energy, Europe now acknowledges the need to diversify its decarbonized energy sources. According to Attila Steiner, Hungarian State Secretary for Energy and Climate, nuclear energy is “inevitable” to ensure energy independence and achieve climate goals. Hungary, holding the EU presidency in 2024, played a key role in aligning the 27 member states around a unified approach.
A New Model for SMRs
The European Commission announced the creation of the SMR Alliance (Small Modular Reactors) in February 2024. This consortium brings together businesses, financial institutions, research centers, and NGOs to accelerate the deployment of these technologies. The goal is to install the first modular reactors in Europe by the early 2030s, meeting demands for both speed and industrial standardization.
Massimo Garribba, Deputy Director-General for Energy at the European Commission, emphasized that Europe must “catch up” with Asia and the United States, which have invested heavily in nuclear energy over the past two decades.
Financing and Competitiveness
The EU is also exploring innovative financing mechanisms. Among them, a “competitiveness fund” proposed by Commission President Ursula von der Leyen could include direct support for nuclear projects. Discussions around this fund are planned for the 2028–2034 budget, with initial projects potentially proposed by 2025.
The role of the European Investment Bank (EIB) is also under review. Historically focused on renewables, the EIB is now considering investments in SMRs, offering new momentum for the European nuclear sector.
Legal and Reputational Challenges
Challenges remain, however. Nuclear energy’s reputation, often marred by cost overruns and delays, needs rebuilding. Alan Woods, Director at Rolls Royce SMR, stressed that a standardized approach with units built in factories is essential to convince investors and ensure timely delivery.
Moreover, legal adjustments are necessary to address specific issues surrounding SMRs, particularly safety and liability concerns. As Ximena Vasquez-Maignan, legal counsel at White & Case, noted, while Europe’s legal framework is robust, it requires adaptation to tackle these emerging challenges.
Geopolitical Motivations
This pivot toward nuclear energy also serves as a strategic response to recent energy crises exacerbated by Russia’s 2022 invasion of Ukraine. Disruptions in natural gas supplies and the urgency to accelerate decarbonization have prompted a reevaluation of energy priorities in Europe.
Simultaneously, national and European elections have strengthened political coalitions favoring nuclear energy, marking a decline in influence for Green parties that remain skeptical about this technology.
