Is Nuclear Power Green? The EU’s Contentious Investment Debate

Exploring how the European Union weighs nuclear energy’s role in climate goals, energy security, and green investments.

By Sneha Tete, Integrated MA, Certified Relationship Coach

Created on Sep 27, 2025

Exploring how the European Union weighs nuclear energy’s role in climate goals, energy security, and green investments.

As the European Union accelerates its ambition to achieve climate neutrality by mid-century, one energy source sits at the heart of an intense debate: nuclear power. Is it truly ‘green’? Should massive investments in nuclear count toward sustainable finance targets? And what does the future hold for Europe’s historically controversial technology? This article unpacks the latest developments, the tensions, and the unanswered questions shaping the future of nuclear power in the EU.

Why Nuclear Power Matters in the EU’s Green Transition

The EU faces an urgent dual objective: decarbonising its energy system to mitigate climate change, while securing reliable energy for its industries and citizens. Nuclear energy, producing about 22.8% of the EU’s electricity in 2023, is once again in the spotlight due to its potential to deliver large-scale, low-carbon power.

Decarbonisation: Unlike fossil fuels, nuclear reactors emit virtually no greenhouse gases during electricity production, contributing to climate goals.
Reliability: Nuclear provides predictable baseload power, stabilising the grid amid the variable output of wind and solar sources.
Energy Security: Diversifying away from imported fossil fuels (notably Russian gas and coal) is central to the EU’s push for strategic autonomy and resilience.

Yet, the balance between nuclear’s climate benefits and its environmental, economic, and social risks remains deeply divisive—within national governments, scientific circles, and advocacy groups alike.

What Counts as ‘Green’? The EU’s Taxonomy and Investment Standards

Sustainable investment is not just a buzzword in Brussels; it is regulated by the EU’s pioneering Taxonomy Regulation, a framework that sets clear criteria for which economic activities qualify as environmentally sustainable.

In 2022, after years of intense scientific and political deliberation, the European Commission included both nuclear energy and natural gas in its taxonomy as transitional activities that could help Europe reach net-zero emissions. This decision, fiercely challenged in court by Austria and Luxembourg, was upheld by the European Court of Justice in September 2025.

The Court accepted that nuclear has “near to zero greenhouse gas emissions” and recognized the lack of technological, economically feasible alternatives for reliable, large-scale low-carbon electricity in the short term.
Both nuclear and gas are considered able to “contribute substantially” to climate change mitigation, but only if strict conditions are met regarding safety, waste management, and efforts to phase out carbon-heavy fuels.
Inclusion in the taxonomy makes nuclear projects eligible for certain EU funds, green bonds, and a wider pool of private climate finance—although some investors and states have set their own exclusions regardless of the Commission’s position.

Nuclear Energy’s Place in the EU’s Energy Mix

As of 2023, thirteen EU countries operated nuclear power plants, making up just under one-fourth of the bloc’s total electricity supply. But the landscape is fractious: France, Finland, and several Eastern European states plan to expand or modernize their fleets, while Germany, Austria, and others have committed to a nuclear phase-out.

Growth Projections: The EU’s installed nuclear capacity is expected to grow modestly from 98 GWe (2025) to 109 GWe (2050), partially offsetting plant retirements and the expansion of wind and solar.
Strategic Goals: By 2040, over 90% of the EU’s electricity mix is forecast to come from “decarbonized sources,” with nuclear playing a stabilizing role beside renewables.
Technological Innovations: Promising new reactor types—such as Small Modular Reactors (SMRs), Advanced Modular Reactors (AMRs), and experimental fusion projects—could shift the cost and flexibility profiles of nuclear in the years to come.

How Much Will Nuclear Expansion Cost?

The EU faces a formidable investment challenge if it wants to sustain and renew its nuclear fleet:

Investment Need	Estimated Value (by 2050)	Main Purpose
Extension of existing reactors + new large-scale plants	€241 billion	Decarbonisation, security, competitiveness
Research, innovation, SMRs, fusion	(included in above, significant focus)	Innovation, industrial leadership
Total (new reactors by 2050, according to broader estimates)	€350 billion or more	(see alternate estimates from industry/commission)

Annualized, this implies EU energy markets would need to attract €40–80 billion per year in generation investments—including both renewable and nuclear capacities—by 2030 and beyond.

Securing private finance is crucial, with investors weighing long timelines, regulatory risk, and public acceptability.
Funding supports not just construction, but lifetime extensions for existing reactors, modernization, workforce training, and breakthroughs like SMRs and lower-waste fuels.

Key Hurdles: Safety, Waste, and Regulation

No discussion of nuclear energy is complete without addressing its toughest challenges:

Safety: Decades after Chernobyl and Fukushima, public trust in nuclear hinges on uncompromising safety standards. EU law sets a high regulatory bar for plant design, licensing, and operation.
Radioactive Waste: Long-term solutions (such as deep geological repositories) for high-level radioactive waste remain under development, and disposal remains a political flashpoint in many countries.
Decommissioning: Safely retiring old reactors and cleaning up sites require immense expertise, strict oversight, and sustained investment.
Non-Proliferation: Preventing the misuse of nuclear materials and securing independence from single suppliers (notably Russian uranium/technology) has become a strategic priority.

Geopolitics: Moving Beyond Russian Nuclear Imports

In the wake of Russia’s war in Ukraine, the EU stepped up efforts to end reliance on Russian fossil fuels—and is now aiming to diversify its nuclear supply chain as well:

Measures under the REPowerEU Plan restrict new supply contracts for uranium and other nuclear materials originating in Russia, and support EU-based mining, enrichment, and fuel fabrication.
International partnerships are being sought to ensure a resilient, secure supply of fuel and technology, while also bolstering global non-proliferation norms.

Innovation: The Promise of Small Modular and Advanced Reactors

Nuclear investment in the EU is not confined to traditional reactors. The Commission is betting big on innovation, backing research and early deployment of SMRs, AMRs, and eventually fusion energy—in hopes of cheaper, safer, and more flexible nuclear power.

Small Modular Reactors (SMRs): These promise faster construction, safer passive cooling, and easier integration into smaller grids or industrial sites.
Advanced Reactors: New designs aim to minimize waste, tolerate higher temperatures, and even use spent nuclear fuel as input.
Fusion: Still years away from commercial reality, fusion offers a potential revolution in clean energy, and the EU is a major partner in the global ITER project.

The EU’s Nuclear Illustrative Programme (PINC) targets substantial public and private resources for R&D, skills training, and scaling startup ventures—seeking to maintain Europe’s “industrial leadership” in a fast-evolving global arena.

Workforce and Industrial Policy: Training for the Future

One of the least discussed—yet most vital—components of the EU nuclear strategy is human capital. Continued progress depends on:

Upskilling the current nuclear workforce to master new technologies and regulations.
Attracting young talent into engineering, physics, safety, and project management.
Supporting innovation ecosystems and nuclear-focused startups, from fuel cycle to digital monitoring.

Governments and industry bodies aim to create attractive career pathways, cross-border certification, and lifelong learning to counter a looming skills gap as veteran experts retire.

Public Opinion and Political Divides

The European public remains deeply split on nuclear power. Support is stronger where the technology is seen as homegrown, or where energy security fears run high. Yet, safety worries and waste controversies fuel resistance in several member states.

Some governments view nuclear as indispensable for net-zero and “just transition” goals, particularly where renewables alone cannot reliably meet demand.
Critics argue that high costs, slow build times, unresolved waste issues, and nuclear’s exclusion from some definitions of ‘renewable’ make it a risky distraction from proven clean energy options.

Hence, the EU’s infamous “nuclear divide”—between expansionist states and those pursuing a rapid phase-out—remains alive in both technical and symbolic forms.

What Happens Next: The EU’s Path Forward

The Commission’s 8th PINC blueprint is being finalised in dialogue with the European Economic and Social Committee and national governments, with a major Energy Council session slated for June 2025 expected to shape the next phase of policy and investment priorities.

Stepped-up cooperation among national nuclear regulators is being promoted to speed up licensing of innovative projects and ensure shared safety standards.
Waste disposal, decommissioning, and non-proliferation commitments will stay at the heart of new directives and funding decisions.

As market reforms unfold under the EU’s Net Zero Industry Act and REPowerEU, nuclear’s treatment as “green” for investment purposes is likely to remain a focal point of contestation—and creative policymaking.

Frequently Asked Questions (FAQs)

Q: Why is nuclear power considered controversial in the EU?

A: Nuclear power is seen as a low-carbon, stable energy source, but it faces concerns about radioactive waste, high upfront costs, accident risks, and public acceptance, especially following incidents like Chernobyl and Fukushima.

Q: What role will nuclear play in reaching the EU’s 2050 climate targets?

A: Nuclear is projected to remain part of the EU energy mix, supporting the shift toward 90% decarbonized electricity by 2040. It is intended to complement rapidly expanding renewables by providing reliable baseline power.

Q: How does the EU ensure nuclear safety and waste management?

A: The EU maintains some of the world’s strictest regulatory frameworks for plant operations, safety, and waste disposal. Research, oversight, and international best practices inform policy on decommissioning and storage.

Q: Are nuclear investments considered sustainable in the EU’s taxonomy?

A: Yes, under the current rules, certain nuclear projects qualify as environmentally sustainable—provided they meet strict conditions on safety and waste—enabling access to some green finance.

Q: What are Small Modular Reactors (SMRs), and why is the EU investing in them?

A: SMRs are next-generation nuclear reactors designed to be smaller, cheaper, and potentially safer than conventional plants. The EU sees them as a promising way to decarbonise, accelerate innovation, and strengthen energy security.

Conclusion

The journey to a net-zero European energy system is a high-stakes balancing act. For nuclear power, the road ahead will be shaped by policy choices, technological breakthroughs, market dynamics, and perhaps most crucially, the values and anxieties of Europe’s citizens. Thus, the question remains open: is nuclear power truly ‘green’? For the EU, the debate is far from settled—but it will help define the future of energy for a generation.

References

Author

Sneha TeteBeauty & Lifestyle Writer

Sneha is a relationships and lifestyle writer with a strong foundation in applied linguistics and certified training in relationship coaching. She brings over five years of writing experience to thebridalbox, crafting thoughtful, research-driven content that empowers readers to build healthier relationships, boost emotional well-being, and embrace holistic living.

Read full bio of Sneha Tete