Fortum’s statement on the role of nuclear energy in the European Commission’s proposal on Net Zero Industry Act

On 16 March, the European Commission proposed the Net Zero Industry Act (NZIA) to scale up manufacturing of clean technologies in the EU and make sure the Union is well equipped for the clean energy transition. While we think including small modular reactors (SMRs) and advanced reactors as technologies that will make a significant contribution to decarbonisation is a step to the right direction, we regret that the whole nuclear sector hasn’t been included as a strategic net zero technology.[1]

The EU and the NZIA should recognise the role of nuclear energy as a strategic net zero technology that contributes to enabling the European decarbonisation, industrial competitiveness and security of supply. Through including the entire nuclear energy sector in the strategic net zero technology category in the NZIA, the EU would have the chance to support the European nuclear sector and its ability to compete on a level playing field with other global regions, like US, that has incorporated its entire nuclear energy industry under the Inflation Reduction Act, or China and Russia that are subsidising their own technologies for export purposes. Fortum sees the proposed NZIA as a missed opportunity for the EU to establish as a key market for nuclear technology development.

At Fortum, we believe nuclear energy is key to achieving global net zero objectives, complementing renewable energy sources and other low-carbon options, as part of a sustainable energy system to enable the decarbonization of societies. In the future, all available clean energy technologies, including nuclear, are needed to become climate neutral – net zero. Both large and small modular reactors are needed to meet the climate goals and the increasing demand for electricity in the future.

[1] SMR and advanced nuclear technologies have been defined as net zero technologies, instead of strategic net zero technologies

Definitions

Net zero technology as defined in the article 3 of the regulation on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem “Net Zero Industry Act”

Strategic net zero technology as listed in the Annex to the “Net Zero Industry Act”