EU Reaches Milestone Agreement: Nuclear Energy Recognised as Clean Energy in Net-Zero Industry Act

On Tuesday (6 February), the Council of EU member states and the European Parliament reached an agreement designating nuclear power as a strategic technology for the EU's decarbonisation efforts.

This consensus followed extensive negotiations in Brussels over the Net-Zero Industry Act (NZIA), presented by the European Commission in March 2023.

This development marks a shift toward treating renewable and nuclear energy equally in the reindustrialisation process.

The NZIA aims to expedite the deployment of technologies contributing to the EU's net-zero emissions target in response to the substantial US green subsidy program, the Inflation Reduction Act, and China's longstanding efforts to lead in manufacturing clean technologies.

The NZIA seeks to streamline permitting procedures for industrial production sites involved in manufacturing components for renewable energy technologies, including nuclear power. During negotiations in "trilogues," representatives from the Parliament, Council, and European Commission affirmed the "strategic" nature of nuclear energy projects.

These projects are now part of a comprehensive list of net-zero technologies benefiting from the NZIA, representing a melding of the Council and Parliament mandates.

The agreement covers established nuclear technologies and includes future third and fourth-generation technologies, such as small modular reactors (SMRs) and advanced nuclear reactors (AMRs), along with their fuel cycles.

French MEP Christophe Grudler, participating in the talks for the Renew Europe group, highlighted the message that the EU recognises the role of nuclear power in achieving Green Deal objectives.

The simplified permitting procedures mean that factories producing components for these technologies will enjoy expedited processes, ranging from 18 to 12 months for larger projects and 12 to nine months for smaller ones. The criteria for prioritising nuclear energy projects in public procurements will facilitate infrastructure development for nuclear energy expansion in Europe. Each EU country will have sovereignty in defining strategic projects on its territory, benefiting from faster permitting and simplified administrative rules.

This development marks a shift toward treating renewable and nuclear energy equally in the reindustrialisation process. Initially, the European Commission's proposal had separate lists for "strategic" and "net-zero" technologies, with nuclear power only included in the latter. However, the final agreement includes all nuclear technologies, addressing concerns raised during the rollercoaster negotiation process.

Despite this achievement, environmental groups expressed dissatisfaction, with German NGO Deutsche Umwelthilfe calling the agreement a "dubious compromise" favouring expensive and high-risk technologies like nuclear power and carbon capture and storage (CCS) over wind and solar power.