A leaked draft of the European Union's next Multiannual Financial Framework (MFF) reveals that nuclear power and low-carbon hydrogen are slated for inclusion among the eligible activities for funding, a move poised to significantly shape the bloc's energy investment landscape. The confidential document, circulating among EU Parliament's environment committee members, outlines a comprehensive approach to energy transition financing, broadening the scope beyond traditional renewables.

The draft list of activities for the upcoming EU budget, expected to underpin the Competitiveness Fund, explicitly supports nuclear energy alongside other decarbonization technologies. This inclusion marks a notable shift, reflecting a pragmatic recognition of nuclear's role in achieving climate neutrality targets. Alongside nuclear and low-carbon hydrogen, the framework also earmarks support for renewables, biogas, carbon capture and storage (CCS), and energy efficiency initiatives, underscoring a multi-faceted strategy to reduce greenhouse gas emissions across the Union.

The proposed definition for low-carbon hydrogen within the draft has already ignited considerable debate. Industry stakeholders have expressed cautious optimism, viewing the inclusion as a vital step towards scaling up hydrogen production and infrastructure. Conversely, environmental NGOs have voiced strong opposition, decrying the definition as 'greenwashing' and arguing it could dilute the EU's climate ambitions by potentially subsidizing hydrogen produced from fossil fuels with carbon capture, rather than exclusively green hydrogen from renewable electricity.

This budgetary development occurs amidst broader policy discussions within the EU. A separate leak from the Parliament's environment committee indicates a rejection of voluntary taxonomy reporting, advocating for mandatory sustainability disclosures to ensure greater transparency and accountability in sustainable finance. Furthermore, the Agency for the Cooperation of Energy Regulators (ACER) recently stated its opposition to peak-shaving products for electricity markets outside of crisis periods, emphasizing market stability. Meanwhile, the electricity lobby has urged EU countries to amend their energy and climate plans to address physical grid resilience, highlighting vulnerabilities exposed by extreme weather events and geopolitical tensions. The recent mid-term resignation of the head of ACER adds another layer of uncertainty to the regulatory environment. These concurrent developments underscore the complex and often contentious negotiations defining the EU's path towards a sustainable and secure energy future.