Nuclear energy is a divisive investment for the funds industry, writes Funds Europe group editor Nick Fitzpatrick.
Convincing investors that nuclear is a viable energy investment on the path towards net zero will be a major communications challenge for the funds industry. Nuclear’s low carbon emissions have afforded it the status of a green energy, at least as far as European policymakers are concerned. However, opinion is divided in the funds industry about whether nuclear will sit well with investor appetites.
“Nuclear energy, being one of the safest and least carbon-intensive sources, serves as the backbone of a renewables-dominated grid,” says one contributor to our article. And the emergence of ‘small modular reactors’ has helped nuclear to be seen as a vital part of the sustainable energy mix, says another.
However, the requirement for dealing with nuclear waste and decommissioning costs makes it a less attractive investment proposition than other, more sustainable energy sources.
Notably, a HANetf survey has found that 98% of survey respondents consider nuclear energy ‘green’ and a crucial part of the transition to net-zero emissions. The firm considers nuclear a “clear choice” for addressing energy security and decarbonisation to meet climate goals.
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