COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Strategy for the development and deployment of Small Modular Reactors (SMRs) in Europe
Date: 2026-03-10
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, carbon neutrality, clean technology, energy market, investment, nuclear energy, nuclear industry, nuclear reactor, security of supply, self-sufficiency in energy

EN 

  EN 

   EUROPEAN COMMISSION  Strasbourg, 10.3.2026  COM(2026) 117 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Strategy for the development and deployment of Small Modular Reactors (SMRs) in Europe  
 
 
1. 

INTRODUCTION 

The supply of homegrown, affordable and clean energy is key to achieving the European 
Union’s  strategic  goals  of  industrial  competitiveness  and  decarbonisation,  as  well  as 
strategic independence and security of energy supply. 

The  emerging  category  of  nuclear  reactors  known  as  Small  Modular  Reactors 
(“SMRs”), could contribute to attaining these EU policy objectives and become one of 
Europe’s next major industrial development projects. 

SMRs have the potential to mobilise entire value chains across several EU countries and 
in different business areas, including engineering, advanced materials and robotics, and to 
unlock private investment. They can bolster EU research and innovation leadership, create 
new technological knowledge and skilled jobs as well as long-term export capacity, while 
ensuring  the  highest  standards  of  nuclear  safety,  security,  safeguards  and  radiation 
protection in the EU to protect citizens and environment. 

SMRs are expected to play a key role alongside traditional large-scale nuclear reactors in 
a flexible, safe, and efficient energy system, characterised by an ever-increasing share of 
clean  electricity  and  a  growing  demand  for  decarbonised  heat  and  steam  supplies  for 
industry and households. SMRs present opportunities both to off-takers in need of stable, 
flexible and clean energy at a large scale, and to an array of nuclear industry players, by, 
for instance, supplying low-carbon electricity and heat simultaneously. 

Due to  their size and modularity along  with the  specific  advantages  of  nuclear energy, 
SMRs are attracting interest across Member States. Preliminary evaluations of expected 
SMR capacity in the European Union by 2050 range from 17 GW to 53 GW for electricity 
generation and other purposes (heat, hydrogen, synthetic fuels) (1). 

What are the small and modular nuclear reactors? 

SMRs  refer  to  nuclear  reactors  that  are  designed  (i)  to  be  smaller  in  size  and  output 
compared to traditional nuclear reactors, and (ii) to be modular, meaning that the reactors 
or their components can be manufactured in a factory setting and transported to a site either 
for direct use or for assembly. 

A useful classification of SMRs encompasses 1) light water SMRs, which have typically 
been  developed  from  existing  water-cooled  nuclear  reactors;  2)  Advanced  Modular 
Reactors (AMRs), which use innovative concepts and next-generation (Generation IV) 
designs  with  different  coolants  (liquid  metal,  molten  salt,  or  high-temperature  gas)  or 
novel  nuclear  fuel  types;  and  3)  Microreactors,  which  typically  produce  less  than  10 
megawatts of electric power, have long refuelling cycles and can be transported (2). 

(1) 

(2) 

Industry estimates and projections in the Nuclear Illustrative Programme (PINC), COM(2026) 120. 

For an overview on the state of play for small modular reactors (SMRs) in a technoeconomic perspective: 
An  exploratory  analysis  of  the  Small  Modular  Reactor  ecosystem,  Publications  Office  of  the  European 
Union, Luxembourg, 2025, https://data.europa.eu/doi/10.2760/4478311, JRC142326. 

1 

 
 
 
 
A variety of end uses, beyond electricity production 

Combining SMRs with renewable and large-scale nuclear energy sources could provide a 
flexible, sustainable energy mix, while making it easier to maintain grid stability. SMRs 
can effectively support grid load balancing. 

While  the  first  SMR  projects  worldwide  focus  on  electricity  production,  SMR 
technologies  are  likely  to  maximise  their  potential  when  targeting  hybrid  or  off-grid 
applications  and  heat  production  for  hard-to-abate  industrial  and  residential  purposes 
rather than competing only in the established EU electricity market. 

By  delivering  low-carbon  electricity  and  heat,  SMRs  can  directly  support  the 
decarbonisation  of  hard-to-abate  sectors  at  the  heart  of  EU’s  industrial  base  including 
chemicals,  steel,  refineries,  maritime  transport,  defence,  and  district  heating,  while 
alleviating  the  pressure  on  electricity  grids  from  growing  demand,  including  from  data 
centres, low-carbon hydrogen and synthetic fuels production, and water desalination. 

In  addition,  microreactors  could  be  used  in  the  future  at  various  industrial  sites,  ports, 
airports and mining sites and to power defence or disaster relief operations. Given their 
size, portability and scalability, microreactors could serve as an enabler creating a wide 
market with multiple applications in the initial phase of deployment of this technology. 

Use case on chemical industries 

Affordable, low-carbon electricity and high temperature industrial heat (steam) are key for 
many chemical manufacturing facilities. Different SMR designs produce steam at various 
temperature levels, approximately ranging from 200°C to 550°C, which can be converted 
to  electricity  and/or  used  in  multiple  chemical  production  processes,  including  in 
petrochemical, ammonia and chlor-alkali industries. In addition, provision of electricity 
by  SMRs  will  be  particularly  relevant  for  (i)  steam  cracking,  where  the  very  high 
temperatures required (750–900°C) could be obtained by electrification, as well as for (ii) 
ammonia  and  methanol  production,  where  natural  gas  reforming  could  be  replaced  by 
water electrolysis. Furthermore, many  chemical  industries are concentrated around 150 
chemical clusters located across the EU (3). The geographical co-location of SMRs within 
these sites as replacements for today’s fossil-fuelled cogeneration plants could make them 
an  attractive  energy  solution  by  reducing  distribution  costs  and  improving  energy 
efficiency. 

Use case on district heating 

Heating  and  cooling  account  for  50%  of  the  EU  final  energy  consumption,  with 
approximately 75% of heat demand currently met by fossil fuels (4). Although there are 
already several large nuclear power plants in Europe supplying district heating networks, 
modern district heating networks are designed to operate between 70–120°C, and are thus 
compatible with low-temperature and low-pressure SMRs. In addition, SMRs can provide 
low-carbon electricity or absorption cooling to support air-conditioning and refrigeration 
needs, helping to meet the growing demand for cooling. 

(3) 

(4) 

COM(2025) 530 final, 8.7.2025. 

Potentials and levels for the electrification of space heating in buildings, Final Report, Publications Office 
of the European Union, Luxembourg, 2023, https://op.europa.eu/en/publication-detail/-
/publication/2ae4481d-8f3b-11ee-8aa6-01aa75ed71a1/language-en 

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Use case on data centres 

Data centres currently account for approximately 70 TWh of electricity consumption in 
Europe, which could reach 115 TWh by 2030 (5). SMRs can deliver dispatchable, low-
carbon electricity with a high annual load factor that is ideal for colocation and hyperscale 
AI-driven  data  centres,  while  their  scalable  modular  design  allows  power  capacity  to 
expand along with digital infrastructure. In addition, co-locating SMRs with data centres, 
possibly  even  “behind-the-meter”,  may  alleviate  grid  constraints  by  delivering  on-site 
electricity,  reducing  dependence  on  congested  transmission  networks,  costly  grid 
upgrades, and associated fees. 

Increased autonomy, improved energy security, and ever-safer applications 

SMRs can strengthen EU’s energy security and autonomy by reducing reliance on fossil 
fuels, while complementing other forms of energy such as renewables. 

Furthermore, certain AMR designs are being developed based on the concept of a closed 
fuel  cycle.  They  will  feature  significant  technological  innovations  aimed  at  increasing 
nuclear safety and sustainability, the latter through significantly improved fuel utilisation 
and by minimising high-level radioactive waste, in line with circular-economy objectives. 
In terms of enhancing safety, these designs rely extensively on inherent and passive safety 
features, reducing dependence on active systems which require external power supply and 
operator  interventions.  This  strengthens  defence-in-depth  and  enhances  resilience  and 
overall nuclear safety robustness. Adherence to the “water efficiency first” principle, as 
stated in the Water Resilience Strategy (6), will ensure the further sustainability and safety 
of this technology, as well as ensure that reactor design, cooling technologies and siting 
decisions minimise pressure on water resources. 

The  diverse  industrial  applications  of  SMRs,  including  future  AMRs,  position  them  as 
potential drivers of local economy development, creating demand for high-skilled jobs. At 
the same time, potentially reduced amounts of high-level radioactive waste can contribute 
to increase public trust in nuclear technologies. 

Setting out a vision for the development of SMRs in the EU 

SMRs  should  be  considered  a  shared  European  industrial  project,  built  on  strong 
collaboration in research, supply chain, licensing, skills, and financing across the EU, and 
founded on the principles of safety, sustainability and circularity. This collaboration will 
help SMRs reduce time-to-market, scale quickly and become competitive, bankable, and 
profitable  projects.  A  fragmented  approach  would  lead  to  duplicated  efforts,  slower 
regulatory approvals, limited manufacturing capacity, and higher unit costs, undermining 
public confidence and future investments – such a scenario should not be accepted for the 
development of this strategic technology for Europe. Pooling resources will provide the 
capacity needed to deliver SMRs for both the EU market and beyond. 

The successful deployment of SMRs will depend largely on the creation of a strong market 
demand  and  a  conducive  business  environment.  The  increasing  need  across  various 
industries to electrify and decarbonise production will be a significant driver. At the same 

(5) 

(6) 

Energy and AI, IEA, Paris, 2025, https://www.iea.org/reports/energy-and-ai, Licence: CC BY 4.0. 

COM(2025) 280 final, 4.6.2025. 

3 

 
 
 
time, it is crucial to provide potential off-takers with a clear outlook about future SMR 
electricity supply, expected cost trends and associated investment risks. 

To create a sound industrial ecosystem for SMR deployment in Europe certain conditions 
should  be  met:  (i) deliver  first-of-a-kind  SMR  installations  as  soon  as  possible  and  not 
later  than  the  early  2030s,  considering  global  developments  (7),  (ii) speed  up  the 
development of advanced designs (AMRs) in parallel since they cover potential additional 
market applications such as high-temperature heat for industrial applications, or maritime 
propulsion,  (iii) nurture  a  European  industrial  supply  chain  able  to  provide  a  broad 
spectrum of components for different design options, (iv) create the conditions for a fleet-
approach  enabling  series  production,  (v)  streamline  regulatory  processes  and  support  a 
collaborative approach among regulatory authorities across the EU to enable timely SMR 
licensing  and  economies  of  scale,  while  ensuring  ambitious  safety  and  environmental 
standards are maintained. 

This calls for an EU-wide strategic approach to coordinate European development efforts 
and the deployment of SMRs in the early 2030s, via closer cooperation between Member 
States and in cooperation with like-minded partner countries at the global level. 

2.  THE ROLE OF EU INDUSTRY AS DRIVING FORCE FOR SMR DEPLOYMENT 

Focusing  on  the  deployment  of  concrete  SMR  projects  within  an  integrated  European 
programme  
In September 2025, the European Industrial Alliance on Small Modular Reactors (8), 
(the  “Alliance”)  presented  its  2025–2029  Strategic  Action  Plan,  which  forms  an 
actionable programme for the industry to deliver on time and on budget, focusing on a 
limited  number  of  projects.  While  the  Alliance  has  already  identified  concrete  SMR 
projects, it needs to further stimulate and coordinate industry actions to deliver: 

1)  light water small and modular reactors (LW-SMRs); 

2)  advanced modular reactors (AMRs). 

Some of the most advanced LW-SMR projects are based on designs of non-EU origin. 
While  implementing  these  projects  in  the  EU  is  consistent  with  the  aim  to  get  SMRs 
operational by the early 2030s, it is essential to develop a balanced and mutually beneficial 
cooperation with the technology holders and like-minded partner countries. These projects 
will contribute to the development of a strong EU supply chain, and EU partners involved 
in  these  projects  need  to  retain  intellectual  property  rights  related  to  technologies  and 
solutions  developed  in  the  EU.  The  EU  research  on  LW-SMRs  safety  should  be 

(7) 

(8) 

In December 2025, the United States Department of Energy (DoE) announced grants totalling USD 900 
million to  support  initial  US  deployments  of  Generation  III+  SMR  technologies. The  US  DoE  had  also 
provided  approximately USD  450  million  under  the  SMR  Licensing  Technical  Support  programme. In 
Canada, the province of Ontario is investing CAD 1 billion through the Building Ontario Fund, and the 
federal government is providing CAD 2 billion through the Canada Growth Fund to build Canada’s first 
SMR. The UK government has established the Advanced Nuclear Fund totalling GBP 385 million for the 
development of a domestic SMR design and AMRs. The first SMRs are already operating in China and 
Russia. 

Since February 2024, the SMR Industrial Alliance has brought together almost 400 organisations, including 
companies, research institutions, governmental bodies and non-governmental organisations. It set a clear 
objective of first SMRs operating in the EU by the early 2030s. In 2024, it held the first call to identify 
concrete projects that can contribute to the achievement of this objective. 

4 

 
 
 
implemented independently of the reactor design origin of those projects to be potentially 
deployed in the EU. 

AMRs need a particular push for further development and innovation including by means 
of testing and demonstration facilities. The projects currently identified by the Alliance 
are  based  on  EU  designs  and  research  efforts  and  have  benefited  from  projects  funded 
under  the  Euratom  Research  and  Training  Programme  in  2021–2025.  Generation  IV 
projects are essential for securing technological knowledge and leadership in the EU, with 
fast-spectrum AMRs also offering opportunity to ensure the sustainability of the nuclear 
fuel cycle in the longer term. 

Focus on achieving a European supply chain for modular and serial production 

A competitive European supply chain should be promoted for securing a high degree of 
local  content  and  European  added  value  in  all  SMR  projects.  This  includes  fuel  cycle 
services such as enrichment and conversion, in line with the objectives of REPowerEU (9). 

The  coordinated  use  of  resources  available  across  Europe  is  essential  to  achieve 
complementarity and develop world-class competencies within the EU. This approach will 
foster a highly competitive European industrial supply chain with strong capabilities and 
sufficient capacity, while simultaneously stimulating robust market demand across sectors 
and  applications.  The  Commission’s  Industrial  Accelerator  Act  proposal (10)  aims  to 
contribute to these objectives. 

The  Alliance  needs  to  facilitate  the  development  of  an  EU  supply  chain  to  ensure  that 
businesses and workers benefit in full, and to pay particular attention to regional supply 
chains  relevant  for  specific  SMR  projects.  Developing  modular  manufacturing  for 
SMRs in Europe is essential and should be inspired by other industrial domains such as 
shipbuilding or passenger aircraft manufacturing. Modularity of designs and diversity of 
suppliers  will  enable  shorter  construction  times  compared  to  traditional  nuclear  power 
plants, paving the way for a stronger and more competitive European industry. 

Furthermore,  constructing  a  fleet  of  SMRs  with  a  consistent  design  across  multiple 
countries  will  require  industrial  standardisation  and  regulatory  cooperation  in 
licensing.  Both  are  essential  to  reduce  construction  times  and  costs  through  improved 
production methods and optimised processes across Member States. 

Closer industrial cooperation and project consolidation are needed 

Industrial experience in the nuclear sector in Europe is solid and can be channelled towards 
the  SMR  market.  However,  due  to  the  very  low  number  of  new-builds  over  the  last 
decades,  the  supply  chain  needs  to  be  revitalised  to  avoid  the  creation  of  import 
dependencies. European companies are now developing their capacities and building up 
workforces  to  respond  to  the  demands  for  new  nuclear  projects,  whether  large  scale 
reactors or SMRs. 

SMR developers, utility companies, potential end-users, and companies along the supply 
chain,  including  small  and  medium-sized  enterprises,  need  to  work  closely  together  to 

(9) 

COM(2025) 440 final/2, 12.5.2025, REPowerEU Roadmap. 

(10)  COM(2026) 100, 4.3.2026, Proposal for a Regulation on establishing a framework of measures for 
accelerating industrial capacity and decarbonisation in strategic sectors (Industrial Accelerator Act). 

5 

 
 
 
stimulate robust market demand, to develop the necessary supply chain capabilities and to 
establish compelling business cases for SMRs. 

SMR start-ups and scale-ups across the EU working on the same or very similar reactor 
designs or technologies should explore opportunities to join forces and collaborate on 
bringing  them  to  the  prototype  stage,  even  if  they  are  likely  to  be  competitors  in  end 
markets. These companies could pool access to testing facilities and build demonstration 
facilities jointly. The development of fuel cycle capacities, including new fuel production 
and,  in  some  cases,  additional  reprocessing  capacity,  needs  to  proceed  in  parallel  with 
reactor design activities. It is not economically viable to develop, produce, and implement 
a large array of different fuels and waste management strategies. 

In some cases, start-ups could develop solutions by working together, and in other cases 
they  could  pool  resources  to  co-invest  in  facilities  with  other  economic  operators,  for 
example in the fuel supply chain. The barriers to overcome are significant and require vast 
resources – financial and human – and will thus be more effectively addressed through 
collective  effort.  Even  projects  working  on  different  reactor  designs  should  explore 
collaboration in the modular manufacturing of certain components and structures. 

Action 1:  Focus on EU industry initiatives by identifying a limited number of projects 

to receive support from suppliers and other partners across EU countries 

Member States and the European Industrial Alliance on SMRs need to focus their support 
on a limited number of the most promising SMR designs where Europe can secure global 
leadership,  enhance  its  competitiveness  and  strategic  autonomy,  and  set  the  global 
standard for waste management and circularity. 

In  order  to  maximise  the  chances  of  success,  the  Alliance  should  focus  on  promoting 
cooperation and the joining of forces among the supported projects, in line with EU and 
relevant  national  competition  laws.  The  Alliance  will  regularly  reassess  the  identified 
projects against this objective. 

Action 2:  Develop  a  competitive  European  supply  chain  in  alignment  with  local 

content requirements 

Member  States,  with  the  support  of  the  Alliance,  need  to  work  on  strengthening  the 
European  supply  chain  for  SMR  development  by  identifying  gaps  and  promoting 
collaboration between suppliers as well as with SMR developers, in alignment with the 
local content requirements of the Commission’s Industrial Accelerator Act proposal. 

Action 3:  Develop and implement industrial standards supporting a fleet approach to 

SMR deployment 

industry, 

including  utility  companies  and  operators, 

The 
in  cooperation  with 
standardisation  bodies (11)  is  encouraged  to  continue  working  on  developing  and 
implementing industrial standards supporting a fleet approach to SMR deployment, and to 
develop the concept of modular manufacturing. 

These actions need to be launched swiftly in line with the goal to have SMRs operational 
in the early 2030s. 

(11) 

Such as European Committee for Standardisation (CEN) and International Organisation for Standardisation 
(ISO). 

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3.  CATALYSING FINANCING FOR THE DEVELOPMENT OF THE SMR VALUE CHAIN 

The  SMR  business  model  relies  on  shorter  construction  times  and  smaller  initial 
investment amounts compared to large-scale nuclear power plants, which in turn allows a 
lowering  of  overall  financing  costs  (per  unit),  making  SMRs  particularly  attractive  to 
potential investors. A key enabler of this business model is the ability to build additional 
reactor modules in sequence, therefore having reactor units generating revenues prior to 
the completion of the full plant. However, this  business model  has yet to  be proven in 
practice, and its success largely depends on the ability to achieve modularity and serial 
production.  These  activities  need  funding  to  overcome  high  initial  capital  costs,  long 
permitting timelines, and the development of a reliable supply chain. 

Facilitate the mobilisation of private investment via de-risking instruments 

The aim of public funding should be to mobilise available private capital through suitable 
instruments, such as guarantees for first-of-a-kind SMR projects (12). 

Member  States  that  are  considering  SMRs  as  part  of  their  long-term  energy  strategy, 
should develop de-risking instruments in a coordinated way to attract investors. In doing 
so, they should seek to leverage the transparency provided by corporate transition plans 
under the Corporate Sustainability Reporting Directive (13). 

Public support for de-risking SMR projects as they advance towards commercialisation is 
essential.  To  address  financing  challenges,  EU  budgetary  guarantees  under  the  current 
InvestEU  (14),  could  contribute  to  the  de-risking  of  investments  in  the  most  innovative 
SMRs, covering also Generation IV reactors and the associated fuel cycle facilities and 
supply chain. Also the Innovation Fund has mechanisms that can support first-of-a-kind 
SMR  deployment  through  its  calls  for  proposals,  providing  a  platform  for  funding  and 
development of mature projects at pre-commercialisation stage. 

The  IPCEI  (Important  Project  of  Common  European  Interest)  candidate  on  innovative 
nuclear technologies, including SMRs, can be instrumental in pooling resources behind 
common  projects  related  to  research,  development  and  innovation  activities  or  first 
industrial deployment (15) of such technologies. Participating in a potential future IPCEI 
on innovative nuclear technologies should also make it easier for SMR projects to mobilise 
private capital. 
The Net-Zero Industry Act (NZIA) (16) could  streamline permitting  processes,  help to 
fast-track strategic projects and facilitate access to finance. 

Under the NZIA, Member States and EU regions could designate certain areas as Net-Zero 
Acceleration “SMR Valleys”, defined as geographical zones focused on activities related 

(12)  Clean Energy Technology Observatory: Nuclear Power in the European Union  - 2025 Status Report on 
Technology Development, Trends, Value Chains and Markets, Publications Office of the European Union, 
Luxembourg, 2026, https://publications.jrc.ec.europa.eu/repository/handle/JRC144653, JRC144653. 

(13)  Corporate sustainability reporting - Finance - European Commission 

(14)  RDI  activities;  in  accordance  with  Regulation  (EU)  2021/523,  this  excludes  ‘the  decommissioning, 
operation, adaptation or construction of nuclear power stations’, OJ L 107, 26.3.2021, pp. 30–89. 

(15) 

First industrial deployment means the upscaling of pilot facilities, demonstration plants or of the first-in-
kind equipment and facilities covering the steps subsequent to the pilot line, including the testing phase and 
bringing batch production to scale, but not mass production or commercial activities. 

(16)  OJ L, 2024/1735, 28.6.2024.  

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to  the manufacturing or assembly  of SMRs. These SMR Valleys  could  help  streamline 
permitting  procedures,  while  fully  adhering  to  rigorous  safety  and  environmental 
standards, improve access to financing and foster innovation and business collaboration 
among local suppliers. They may also enable the Member State or the region concerned to 
design  supportive  measures,  such  as  tax  incentives  in  line  with  the  Commission’s 
recommendations on tax incentives to speed up the clean industrial transition (17). 
The  Clean  Industrial  Deal  State  Aid  Framework  (CISAF)  (18)  streamlines  State  aid  for 
manufacturing  capacity in clean technologies.  It  may enable Member States to  provide 
support aimed at expanding manufacturing capacity for NZIA products and main specific 
components, including relevant SMR technology. 
Drawing from the Mankala (19) and Industrikraft (20) models, industry can collaborate to 
co-invest  in  SMR  projects  to  drive  the  development  of  that  technology  in  the  EU. 
Furthermore, synergies could be leveraged with other sectors targeted by EU initiatives, 
including  battery  giga-factories  and  large  computation  and  data  hubs  like  AI  giga-
factories, which are positioning themselves as future SMR end-users, in line with trends 
observed in other parts of the world. 

Tripartite agreements between off-takers of electricity or heat from innovative SMRs, 
nuclear  industry  invested  in  innovative  SMR  development,  reactor  vendors  and  supply 
chain  companies,  and  Member  States  could  facilitate  access  to  financing  and  help  the 
development and deployment of innovative SMR projects in Europe. 

Public funding to support EU start-ups 

Europe has several  innovative startups  in  the nuclear sector  thanks to  a long  history of 
nuclear research, supported also by the Euratom research programmes. The EU Startup 
and  Scaleup  Strategy  (21)  aims  at  facilitating  access  to  finance,  public  procurements, 
markets, services, and talents for innovative start-ups and scale-ups, including in the area 
of nuclear technologies. It also announced the creation of the Scaleup Europe Fund as part 
of the European Innovation Council (EIC) Fund, to mobilise significant private funds and 
make direct equity investments in strategic sectors. Moreover, the EIC can provide support 
to innovative startups developing disruptive nuclear technologies. 

(17)  C(2025) 4319 final, 2.7.2025. 

(18)  C(2025) 7600, Communication from the Commission – Framework for State Aid measures to support the 

Clean Industrial Deal (Clean Industrial Deal State Aid Framework). 

(19)  Nuclear Economics in Finland, 

https://nucleus.iaea.org/sites/INPRO/df8/Section%202/Plenary_Economics_07_Stahl.pdf 

(20) 

(21) 

https://www.industrikraft.se/en  

EU Startup and Scaleup Strategy - Research and innovation, May 2025. 

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Action 4:  Develop  de-risking  schemes  for  the  scaling  up  of  innovative  nuclear 

technologies  

In light of the outcome of the ongoing call for proposals under the Innovation Fund with 
regard to SMR projects, the European Commission will consider an additional temporary 
InvestEU top-up of EUR 200 million until 2028 to further support the deployment of the 
initial commercial units of innovative nuclear technologies, including LW-SMRs, AMRs, 
Microreactors and fusion, within the EU (22). 

The new Scaleup Europe Fund, which aims at investing in the most promising European 
companies in strategic technology areas, could also help innovative nuclear technologies 
to achieve faster deployment. 

Action 5:  Design IPCEI on innovative nuclear technologies 

Member  States  will  design  the  IPCEI  for  innovative  nuclear  technologies,  including 
SMRs,  in  line  with  objectives  outlined  in  this  strategy,  with  a  focus  on  creating  the 
conditions  for securing  European global  leadership  and enhanced  competitiveness.  The 
Commission  will  continue  to  support the process through the Design  Support  Hub and 
promote a coherent approach with the progress of the Alliance’s activities. 

Action 6:  Support the development of SMRs within Net-Zero Acceleration Valleys  

When  setting  up  Net-Zero  Acceleration  Valleys,  Member  States  and  regions  are 
encouraged to identify the potential for using power and heat sourced from SMRs and, 
where appropriate, set up a corresponding enabling framework. 

A strong commitment and an inclusive engagement of all the actors is necessary to swiftly 
deliver on these actions with a view to deploy first SMRs in the early 2030s and develop 
strong and competitive supply chain. 

4.  A PUBLIC POLICY WILL BE NECESSARY TO SUPPORT THE SMR ECOSYSTEM 

The development and deployment of SMRs must be industry-led. At the same time, some 
public  support  is  necessary  to  help  overcome  initial  economic  and  regulatory  barriers. 
Policy initiatives will also be needed to protect the intellectual property and technological 
know-how in this sector, and to revitalise the industrial supply chain and human capital. 

R&D&I support for SMRs 

Over the past decades, various national support programmes and the Euratom Research 
and  Training  Programme  have  advanced  R&D&I  for  technologies  that  benefit  SMRs. 
These initiatives have fostered collaboration among Member States and strengthened the 
EU’s leadership in the nuclear sector through increased expertise and know-how. 

In 2024, five Euratom research projects related to LW-SMRs and AMRs were launched 
with  a  total  value  of  EUR 30 million.  The  Commission  expects  to  continue  funding 
research on the safety of SMRs with EUR 15 million under the Euratom Research and 
Training Programme in 2026–27. As for the 2028–34 multiannual financial framework, 
the  Commission  has  proposed  a  significant  increase  in  resources  to  support  research, 
development and innovation in the area of nuclear energy, which will also benefit the SMR 
field. 

(22) 

In compliance with State aid rules. 

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Member States and the Commission, through its Joint Research Centre, operate state-of-
the-art nuclear research infrastructure. However, further investments are needed in new, 
complementary  experimental  facilities  for  testing  fuel,  materials,  and  specialised 
equipment,  and  to  optimise  their  use  by  the  different  nuclear  industry  players.  It  is 
important to identify and prioritise the development of these new experimental and testing 
facilities to address the core R&D&I needs of SMRs in the EU. SMR projects could have 
access  to  the  Commission’s  nuclear  research  infrastructure  and  benefit  from  the  JRC’s 
expertise, including its Modelling Hub. 

What else Member States can do to support SMR deployment 

Different  SMR  projects  with  similar  designs  are  currently  being  pursued  in  various 
Member States. Since resources are limited, to increase the chances of success, Member 
States should join forces and pool their resources behind common projects and develop a 
common  de-risking  instrument  for  SMR  financing.  Future  research  and  innovation 
activities  could  also  address  water-  related  aspects  of  SMR  deployment,  including 
advanced  cooling  technologies,  integrated  energy-water  system  modelling  and  hybrid 
infrastructures supporting both energy and water services such as desalination or advanced 
water reuse. 

Many SMR projects involve companies from several Member States. Such projects require 
frequent  transfers  of  data,  technology  and  equipment  across  national  borders.  These 
exchanges  can  be  delayed  significantly  by  export  controls  even  within  the  EU  as 
technologies and components needed for SMRs are often categorised as dual-use items. 
Without prejudice to EU legislation on export controls of dual-use items, the competent 
Member  State  authorities  should  streamline  export  control  procedures  for  transfers 
between Member States to avoid undue administrative burden and delays for these, often 
small, companies. 

As many other high-tech sectors, the SMR ecosystem needs a growing pool of skilled and 
competent  workers.  It  is  crucial  to  monitor  supply  and  demand  based  on  national 
workforce assessments with the support of the European Human Resources Observatory 
for the Nuclear Energy Sector and to develop tailored training and education programmes 
at  both  national  and  EU  levels.  The  Observatory  should  also  feed  into  the  forthcoming 
European  Skills  Intelligence  Observatory  announced  under  the  Union  of  Skills  (23). 
European Nuclear Skills Initiative (24) supports actions to maintain and further develop the 
skills for the safe use nuclear technologies in the EU, including SMRs. Member States and 
the  Commission  should  work  on  the  establishment  of  an  EU  Net-Zero  Academy  for 
Nuclear Technologies, including SMRs, to support the retention of skills and the building 
up of a competent workforce (25). 

Support to European regulatory collaboration in SMR licensing and nuclear safety 

Licensing processes are essential for delivering SMR projects on time. Cooperation among 
national  safety  authorities  is  essential  during  the  pre-licensing  and  licensing  phases  to 

(23)  COM(2025) 90 final, 5.3.2025. 

(24)   Euratom Research and Training Work Programme 2023–25; European Nuclear Skills Initiative; Skills for 

nuclear 

(25) 

The  establishment  and  implementation  of  the Academy  should  be  informed,  as  appropriate,  by  the 
outcomes  of  the  review  of  existing  Skills Academies  announced  in  the  Communication  on  the  Union 
for Skills. 

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ensure that new reactor designs proposed to the market comply with the highest standards 
of nuclear safety. 

The European Nuclear Safety Regulators’ Group (ENSREG) has established a dedicated 
taskforce within which regulators from several Member States exchange information on 
SMR designs in the pre-licensing phase. Such collaboration can avoid duplication, save 
resources and speed up the licensing of reactor designs, while having a positive effect on 
nuclear safety. The taskforce could be developed into a “regulatory coalition of willing”, 
in  which  the  countries  involved  could  align  their  licensing  procedures  or  mutually 
recognise each other’s licensing decisions. 

In addition to the Commission grant scheme to support the Member States’ nuclear safety 
regulators,  mechanisms  such as  the NZIA’s “Regulatory Sandboxes” or “Joint Early 
Reviews”  between  national  nuclear  safety  regulators  could  facilitate  collaboration  and 
shorten the time needed for licensing, while ensuring that rigorous safety  standards are 
maintained. 

Regulatory  sandboxes  for  net-zero  technologies,  including  SMRs,  are  structured 
frameworks allowing the companies involved to test, qualify, and validate new approaches 
and innovative components under the supervision of a competent regulatory authority or 
several  regulatory  authorities  agreeing  to  work  together.  To  facilitate  compliance  with 
safeguards  requirements,  operators  of  installations  must  follow  a  safeguards-by-design 
approach (26). 

Action 7:  Removing barriers to intra-EU flows and protecting European IP 

Member States need to simplify and speed up administrative procedures related to export 
controls between Member States for SMR projects. Member States and the Commission 
should  explore  how  to  protect  European  IP  developed  in  the  context  of  SMRs,  mainly 
through foreign direct investment screening and merger control mechanisms. 

Action 8:  Establish an “SMR coalition” on policy, regulatory, licensing and economic 
aspects of selected SMR designs to facilitate SMR deployment by early 2030s 

Interested Member States should establish an “SMR coalition” to facilitate the introduction 
of the Alliance’s selected SMR designs, across their territories, through in-depth policy 
and regulatory cooperation and minimise – when impossible to avoid – locally customised 
solutions.  Countries  could  align  their  licensing  procedures  or  mutually  recognise  each 
other’s licensing decisions. The Commission will maintain a grant scheme to support EU 
regulators  working  on  common  safety  assessments  and  joint  early  reviews  of  SMR 
projects. The Commission will assist Member States in developing regulatory sandboxes 
for SMRs. 

On both actions, the interested Member States are encouraged to move swiftly to facilitate 
deployment  of  the  first  SMRs  in  the  early  2030s  and  create  the  conditions  for  a  fleet-
approach for their wider adoption. 

(26) 

The  Commission  provides  a  clear  framework  for  the  application  of  Euratom  safeguards in  current  and 
future nuclear installations, including SMRs: Commission Regulation (Euratom) 974/2025 of 26 May 2025 
on the application of Euratom safeguards, OJ L, 2025/974, 16.6.2025. 

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Public awareness and international cooperation 

Ensuring public awareness of SMR development initiatives is critical to build trust around 
these  projects.  The  Commission  will  continue  pursuing  a  culture  of  transparency  on 
nuclear  energy.  In  preparation  for  this  communication,  the  Commission  engaged 
stakeholders via a Call for Evidence (27) and a broad Stakeholders’ Forum in January 2026. 

Member  States  interested  or  concerned  by  SMRs  could  develop  and  implement 
communication and awareness  actions aimed at  improving the understanding  of SMRs. 
These  strategies  should  communicate  in  transparent  terms  the  characteristics,  safety 
measures,  and  potential  benefits  of  SMRs  to  the  public,  including  at  the  local  level,  to 
address specific community concerns and interests. 

International  collaboration  with  organisations  such  as  the  International  Atomic  Energy 
Agency  or  the  OECD-Nuclear  Energy  Agency  and  with  partner  countries  such  as  the 
United States, Canada, the United Kingdom, Japan and South Korea will continue. The 
EU remains open to non-EU players, with due caution to prevent the emergence of new 
import  dependencies.  Working  closely  together  with  candidate  and  potential  candidate 
countries, in line with the process of their gradual integration, will be an integral element 
of the strategy. 

In  addition  to  industrial  cooperation  between  the  European  Union,  Member  States  and 
partner countries, there is scope for enhanced dialogue on regulatory frameworks. 

Action 9:  Working with international like-minded partners for mutual benefit 

The  Commission  will  continue  to  cooperate  with  partner  countries  planning  to  deploy 
SMRs in the near term, including candidate and potential candidate countries and partner 
countries in our Southern neighbourhood, as well as with international organisations such 
as the OECD-Nuclear Energy Agency and the International Atomic Energy Agency, and 
international  initiatives  such  as  the  Generation  IV  International  Forum.  In  particular, 
cooperation  with  the  International  Atomic  Energy  Agency  is  key  to  develop  common 
safeguards  approaches  for  SMRs.  The  Commission  will  also  facilitate  business-to-
business dialogues for the mutual benefit of the industry of the EU and that of relevant 
partner countries. 

5.  CONCLUSIONS 

SMRs have significant potential to contribute to efforts to make the EU the first climate-
neutral  economy  while  ensuring  energy  security,  affordability,  and 
industrial 
competitiveness, as well as strengthening strategic autonomy. 

The  EU  has  built  relevant  technological  expertise  and  facilities  over  the  past  decades, 
supported by a broad industrial base, all of which are crucial assets in the development and 
deployment of SMRs in Europe. The EU is also a world leader in the nuclear energy life 
cycle, including in closing the fuel cycle through reprocessing and the recycling of nuclear 
materials. 

In the global race of the emerging SMR market, the EU needs to take urgent action to stay 
at  the  forefront,  remain  competitive  and  continue  developing  new  technologies.  The 
Commission is committed to creating the enabling conditions for SMRs development and 

(27)  Call for evidence, Small modular reactors – future development and deployment in Europe 

12 

 
 
 
deployment, while ensuring adherence to the highest standards in nuclear safety, security, 
safeguards, radiation protection and in radioactive waste management to protect citizens 
and environment. 

Deployment  of  the  first  SMRs  in  Europe  is  realistically  targeted  for  the  early  2030s. 
However,  the  success  of  this  endeavour  hinges  on  access  to  capital,  the  pooling  of 
knowledge,  infrastructure  and  resources  by  various  actors,  an  alignment  of  regulatory 
frameworks across Member States, a shortening of licensing timelines, standardisation of 
designs, the adoption of a fleet approach, and the development of strong supply chains. 

This strategy calls for collective commitment and coordinated action from EU institutions, 
Member States, industry, and research organisations. Together, these efforts will realise 
the  potential  of  SMRs  to  contribute  to  a  sustainable,  competitive,  and  resilient  future 
European energy system. 

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