The European Union (EU) has shown interest in incorporating nuclear power generation into the scope of the “Net-Zero Industry Act (NZIA),” which supports environmentally friendly industrial investments. This development could provide impetus to South Korea's efforts to promote the international expansion of clean energy, including nuclear power, as part of its clean and carbon-free energy (CFE) initiatives.
According to the Korea International Trade Association on Oct. 18, the EU Council is actively considering the inclusion of nuclear power as part of its Strategic Net-Zero Technologies, which are eligible for permits and preferential support under the NZIA. The legislation is expected to be finalized as early as next month.
In March, the EU introduced a draft of the NZIA aimed at expanding domestic production capacity through streamlined regulations and support for technology development in the green industry sector as part of the “Green Deal Industry Plan.” This act supports carbon-neutral technologies such as solar power, wind energy, batteries, electrolysers, and carbon capture and storage (CCS).
While nuclear power was initially excluded from the list of supported technologies in the draft, the European Parliament’s Committee on Industry, Research and Energy (ITRE) proposed an approach that designates a broad range of technologies vital for the transition to green energy instead of specifying “strategic net-zero technologies” in the law’s provisions. This change effectively includes nuclear power within the scope of eligible support for projects.
Furthermore, it has been reported that the EU Council is leaning towards recognizing nuclear power as a priority for support. This shift is seen as a response to Europe’s energy crisis, influenced by factors like the Russia-Ukraine conflict and the resulting international energy price hikes.
If the EU includes nuclear power within the scope of “strategic net-zero technologies” in the NZIA, it is anticipated that this development will have a positive impact on South Korea’s efforts to promote the international expansion of CFE.
President Yoon Suk-yeol’s proposed Clean Future Energy (CFE) alliance is set to begin activities to raise CFE as an international agenda at the UN Climate Change Conference of the Parties (COP28) to be held next month. Currently, it is known that countries like the United States and Japan share a similar stance with the South Korean government on CFE. If even the EU, which was relatively reserved about nuclear power, recognizes it as part of clean energy support, it will provide momentum for the international expansion of CFE.
With Europe pursuing a favorable nuclear policy, opportunities for nuclear power plant orders are expected to increase. Apart from the Czech Republic, Romania, and Poland, countries like the Netherlands, the U.K., and Finland also have plans to order nuclear power plants.
However, the South Korean government’s stance is to wait until the final version from the EU is released. Some EU member states that have halted nuclear power, such as Germany and Spain, have been opposing the inclusion of nuclear power within the scope of strategic net-zero technologies. Hence, there could be differences of opinion until the very end.