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, Bloomberg reports.
A number of other companies are talking to investors about it, according to NatWest Markets Plc, one of the top 10 arrangers of environmental bond deals.
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.