Once-Unthinkable Nuclear Green Bonds Are Coming to Europe
Author: Greg Ritchie and Ronan Martin
Europe’s green bond market is preparing to finance nuclear energy projects for the first time.
Electricite de France SA has updated its green financing framework to include nuclear after European Union lawmakers voted to give certain nuclear energy projects a sustainable label. Even though nuclear has achieved green status on paper, thanks to low carbon emissions, it’s controversial and some ethical funds plan to continue boycotting it. EDF said it will distinguish between green bonds that finance nuclear and those that don’t, effectively creating two classes of debt to cater for the schism among investors. It’s the latest flashpoint in a broader disquiet within the sustainable finance industry. Its divisive status was reflected by EDF saying that proceeds of green bonds funding nuclear power shall be managed in a separate portfolio.