The European Union agreed in July 2022 to include nuclear power in its taxonomy of environmentally sustainable economic activities. Yet as Columbia University senior research scholar Matt Bowen and research assistant Kat Guanio note in commentary published July 6 by Columbia University’s Center on Global Energy Policy, that policy decision remains “a bit of an outlier.” Despite nuclear energy’s anticipated role in achieving decarbonization, many climate finance taxonomies either explicitly exclude nuclear power or are discouragingly ambiguous.

“Where nuclear power was once a source of unity for Europe, today it is a source of discord.” So states The Economist’s October 30 “Charlemagne” column—a regular source of commentary on European politics in the weekly publication—before deftly dissecting nuclear power’s continental divide and picking a winner.

Within the European Union, recognizing nuclear energy as green, sustainable, and worthy of investment depends on nuclear being added to the EU taxonomy of “sustainable investments that have been found to ‘do no significant harm’ to human health and to the environment.” The EU will issue a final taxonomy this year, and a decision to include nuclear power—which was excluded from a draft released in late 2020—could raise prospects for public and private nuclear investments both inside and outside the EU.

The decision rests with the European Commission (EC), which will take into consideration expert opinions, including those in a scientific report of the EC’s Joint Research Centre (JRC) that was requested last summer. The JRC's 387-page report, Technical assessment of nuclear energy with respect to the ‘do no significant harm’ criteria of Regulation (EU) 2020/852 (‘Taxonomy Regulation’), was leaked to the media and made available online on March 26. The report supports adding nuclear to the taxonomy.