EU Puts Nuclear on Par with Renewables in Green Spending Plan
The European Commission has proposed a sweeping long-term budget for 2028–2034, with more than €700 billion earmarked for climate and environmental objectives — and for the first time, new nuclear fission capacity is classified as 100% climate mitigation.
The nearly €2 trillion budget package, presented in Brussels on July 16, sets a target for 35% of all EU spending to support climate and environmental goals. The climate-linked investments are intended to help meet the bloc’s 2040 climate target and achieve net-zero emissions by 2050.
Among the clean technologies supported under the proposal are renewables, sustainable transport, industrial decarbonisation, and — significantly — nuclear power. In the accompanying annex, the Commission includes “new or additional fission energy capacity” among eligible climate mitigation actions, giving it a 100% score under the EU’s green spending taxonomy. That places nuclear alongside top-ranked low-carbon solutions in terms of climate benefit.
While the EU has previously funded nuclear research and development through programs like Horizon Europe, this marks a notable shift in how nuclear is positioned within the Union’s climate policy framework. The classification could open the door to greater financial support for new nuclear projects under various EU instruments, including the European Competitiveness Fund, Innovation Fund, and Connecting Europe Facility.
The proposal also reinforces several guiding principles: a “Do No Significant Harm” rule to prevent adverse environmental impacts from funded activities, and a new “Climate Resilience by Design” standard to ensure infrastructure investments are built to withstand worsening climate conditions.
Funding for Clean Energy, Decarbonisation, and Infrastructure
Key programs contributing to the climate spending target include:
National and Regional Partnership Plans (43% climate allocation): Linking local reforms with clean investments tailored to regional needs.
European Competitiveness Fund (43%): Supporting industrial decarbonisation, clean tech manufacturing, and the new Industrial Decarbonisation Bank.
Framework Programme for Research and Innovation (40%): Advancing applied clean energy R&D across sectors.
Connecting Europe Facility (70%): Boosting cross-border infrastructure in energy and transport.
Global Europe Instrument (30%): Expanding support for climate and energy partnerships abroad.
The funding package also strengthens tracking systems to monitor green spending results across all programs, aiming for greater transparency and effectiveness.
A Clearer Path for Nuclear in EU Climate Strategy?
The inclusion of nuclear with a full climate mitigation rating may ease past divisions within the bloc over the technology’s role in the energy transition. While some member states, like France and Finland, strongly support nuclear, others remain cautious or opposed. The Commission’s updated classification signals that, from a funding and policy standpoint, nuclear will have a seat at the table in Europe's clean energy transition — at least for fission.
Fusion, still in the early stages of development, was not referenced in the current budget framework.
As EU institutions begin negotiations over the Multiannual Financial Framework, the energy sector will be watching closely to see how this climate spending vision translates into actual investments — and how the green light for nuclear may shape project pipelines across the continent.