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The European Union is mobilizing funds and building a coalition of member states to accelerate the development of next-generation nuclear technology.
The European Union is taking a significant step toward the development of next-generation nuclear technology by supporting small modular reactors (SMRs). According to a strategy recently adopted by the European Commission, Brussels could mobilize up to €200 million from the EU Emissions Trading System (ETS) over the next two years to support innovative nuclear technologies. The initiative reflects a broader effort to strengthen Europe’s energy security while advancing decarbonization goals.
The funding would help accelerate research and development projects and partially compensate for the current gap in financing from the InvestEU program. Although relatively modest compared with the scale of the energy transition, the investment represents a symbolic shift in the EU’s approach to nuclear power. For years, nuclear energy has divided member states, with some advocating expansion and others opposing it. The new strategy suggests a more pragmatic stance as the bloc faces growing geopolitical uncertainty and the urgent need to reduce dependence on fossil fuels.
According to the plan announced by European Commission President Ursula von der Leyen, once the design of SMRs receives regulatory approval, it could take three to four years to develop the first operational models. This timeline means that the first next-generation reactors supported by private investors and EU funds could be operational around 2030.
A central element of the strategy is the creation of a “coalition of the willing” among EU member states. The initiative aims to coordinate regulatory frameworks, industrial policies, and financing mechanisms related to SMR development. By aligning national policies, the EU hopes to create a strong industrial ecosystem capable of supporting the production, licensing, and deployment of these new reactors.
The European Commission describes SMRs as a shared industrial project for the continent. This means cooperation at every stage of the value chain—from scientific research and engineering to supply chains, licensing procedures, and investment strategies. The goal is to ensure that Europe does not fall behind other global players that are rapidly investing in advanced nuclear technologies.
Small modular reactors differ significantly from traditional nuclear power plants. As their name suggests, SMRs are smaller and designed to be modular, allowing components to be manufactured in factories and assembled on site. This approach can reduce construction times and costs while increasing flexibility in deployment.
Most SMR designs are based on light-water reactor technology, which is widely used in conventional nuclear plants. However, many next-generation designs are considered advanced reactors that incorporate so-called fourth-generation technologies. These systems may use alternative coolants such as liquid metal, molten salt, or high-temperature gas. The category also includes microreactors capable of generating less than 10 megawatts of electricity. These smaller units could operate for long periods without refuelling and may even be transportable, making them suitable for remote areas or industrial facilities.
The EU’s renewed interest in nuclear energy comes amid growing geopolitical tensions and concerns about the reliability of global energy supplies. Recent crises, including instability in key shipping routes such as the Strait of Hormuz, have highlighted Europe’s vulnerability to external disruptions. Despite significant progress in renewable energy deployment, the EU still relies heavily on imported fossil fuels.
Supporters of nuclear power argue that SMRs could complement renewable sources such as wind and solar by providing stable, low-carbon electricity. In a highly electrified energy system, nuclear power could help maintain grid stability while contributing to the EU’s long-term climate targets.
Within the EU, France remains the dominant nuclear power. The country accounts for roughly 45 percent of the bloc’s nuclear electricity production and has launched an ambitious plan to build new reactors. Paris is also among the strongest advocates for including nuclear energy in Europe’s broader decarbonization strategy.
France is not alone. More than fourteen EU countries—including Italy—have expressed support for increased nuclear investment, particularly in the development of SMRs. This emerging alliance reflects a shift in energy policy across the continent.
Poland, for instance, has announced plans to invest around €150 billion in nuclear energy by 2040. The country has already begun preparations for its first nuclear power plant in Lubiatowo-Kopalino, scheduled to be completed in 2033. The project marks a major step for a country historically dependent on coal.
Belgium, meanwhile, is reconsidering its nuclear phase-out. Although the country had planned to shut down all seven of its reactors, some facilities will remain operational until at least 2045 to help ensure energy security.
Interest in nuclear power is also growing across Central and Eastern Europe. Hungary, the Czech Republic, Bulgaria, and Romania are planning new reactors or extending the lifespan of existing ones. Finland already operates one of Europe’s most powerful reactors, Olkiluoto 3, capable of producing 1,600 megawatts. Other countries—including Sweden, Slovenia, and the Netherlands—are studying potential investments in SMR technology.
Italy is also exploring a possible return to nuclear energy. Speaking at the World Summit on Nuclear Energy in Paris, Environment and Energy Security Minister Gilberto Pichetto Fratin said the government is assessing the realistic possibility of reintroducing nuclear power into the national energy mix. According to the minister, nuclear energy could contribute to decarbonization, grid stability, and supply security in an increasingly electrified system.
Rome has also signalled its intention to join international efforts to triple global nuclear capacity in the coming decades—an objective that underscores the growing importance of nuclear energy in Europe’s evolving energy strategy.
Alessandro Fiorentino