Policy support, taxonomy clarity drive nuclear bonds to $44bn

August 14, 2026 (MLN): Sustainable Fitch has reported that labelled debt instruments linked to nuclear energy have climbed to high levels over the past two years, driven by mounting concerns over energy scarcity and supply security alongside stronger policy backing and greater taxonomy flexibility and clarity.

According to the agency’s review of the market  90 bonds have been issued by nuclear operators or carrying nuclear-related use of proceeds since 2013, together worth around $44bn, with roughly half of that issuance concentrated in the period since 2024.

The green bond label accounts for the bulk of this issuance, though several other labels have also been used.

Sustainable Fitch noted that earlier nuclear-related labelled bonds were largely directed toward reactor refurbishment and life-extension projects.

Use of proceeds has since widened considerably, with issuers now channelling funds toward new facility construction and development, research into next-generation reactor designs including small modular reactors (SMRs), as well as fuel procurement and emergency-preparedness programmes.

The agency said its evaluation framework applies distinct considerations to different nuclear-related activities, spanning electricity generation from nuclear sources to the construction and design of nuclear installations.

Its rating approach weighs the sector's positive contribution to climate change mitigation against the complex challenges of responsible nuclear waste management and related environmental risk, with additional credit given where environmental risks are further mitigated or where added social benefits exist, such as in certain SMR applications.

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