Nuclear’s Global Renaissance: Pragmatism, Innovation, and the Path to Net Zero

The global energy landscape is at a pivotal crossroads. As electricity demand surges and climate imperatives grow more urgent, nuclear power is experiencing a remarkable renaissance. Once sidelined by public skepticism and the allure of still-competitive fossil fuels as well as cheaper renewables, nuclear energy is now returning as a key pillar of the world’s evolving energy mix. At Societe Generale, we are seeing a profound shift in sentiment and investment, as countries and companies alike recognize the essential role nuclear can play in delivering reliable, low-carbon power.

A New Era for Nuclear: Who’s Leading the Charge?

China stands at the forefront of this nuclear revival, with nearly 60 reactors in operation and another 29 in construction. But China is far from alone. The United States is seeking to reinvigorate its nuclear sector, with ambitious targets to at least triple capacity; currently the US maintains ~94 nuclear reactors across 53 plants however virtually all the existing plants were built prior to 1990.  As such, modernization and new builds (targeting 10 new larger reactors by 2030) are expected. The United Kingdom has made its first major commitment to new nuclear in decades, investing billions into both large-scale plants and Small Modular Reactors (SMRs) and announcing final investment decision on Sizewell C nuclear power plant. Japan, after years of caution following Fukushima, is restarting its nuclear fleet, and South Korea has reversed its phase-out policy.
Europe is also witnessing a shift. Denmark, Italy and Belgium -- countries that phased out nuclear or planned to -- are now reconsidering to various degrees, while France and Poland continue to show robust support. Emerging economies are increasingly active as well: three-quarters of reactors under construction at the end of 2024 were in emerging markets, with half in China. Bangladesh, Egypt, Turkey, Jordan, Kazakhstan, and others are advancing nuclear projects to meet surging power demand and reduce reliance on fossil fuels.
Adding to this momentum, the World Bank has lifted its long-standing ban on funding nuclear projects, joining forces with the International Atomic Energy Agency to help more countries integrate nuclear into their development strategies. And 14 financial institutions (including Societe Generale) have committed to supporting projects that will contribute to tripling nuclear energy production capacity by 2050.

Why Now? The Drivers of Nuclear’s Resurgence

Several factors are converging to drive this renaissance. First, the need for secure, low-carbon baseload power is more pressing than ever. The electrification of industries, the proliferation of data centers, and the growing demand for cooling in a warming world are all straining existing grids. Nuclear energy, with its stable output and lack of greenhouse gas emissions, is uniquely positioned to meet these needs.
Second, the passage of time since the Chernobyl and Fukushima accidents, coupled with significant safety advancements, has begun to ease public concerns – even in Japan, recent opinion polls show that a majority is now in favour of restarting idle nuclear plants.
Third, the economics of nuclear are evolving. While upfront construction costs are high, the long operational life of modern reactors (now often extended from 40 to 60 years or more) spreads these costs over decades. When accounting for the additional infrastructure and storage required to balance renewables, and the costs of carbon capture for fossil fuels, nuclear’s competitiveness becomes clearer. Moreover, uranium prices are less volatile than oil or gas, and fuel can be stockpiled, enhancing energy security.  In addition, government support continues to play a key role in advancing build out.  
The Pros and Cons: A Balanced Perspective
Nuclear energy’s advantages are clear: it is a stable, reliable, and emissions-free source of baseload power. Once operational, plants usually have minimal downtime and predictable operating costs. Unlike renewables, which require storage and grid upgrades to manage intermittency, nuclear provides consistent output, complementing wind and solar.
Yet, challenges remain. Safety is the foremost concern, given the legacy of past accidents. However, modern reactors feature robust safety systems, and the actual death toll from nuclear incidents is significantly lower than, for example, the ongoing health impacts of coal. Radioactive waste management is another persistent issue, requiring secure, long-term solutions. While new reactor designs may aim at reducing waste volume, ultimate disposal remains a complex and costly challenge.
Financing is also a hurdle. High capital costs and long construction timelines of up to 10-15 years mean that most nuclear projects require a strong government support package. Commercial banks, including Societe Generale, participate only when projects meet rigorous standards for technology and safety – and where the bulk of the construction and operational risks are underwritten by the public sector or, less frequently, by creditworthy private sector counterparties.

The Promise and Challenge of Small Modular Reactors

Perhaps the most exciting development is the rise of Small Modular Reactors (SMRs). These compact reactors, often based on micro-reactor technology used in nuclear submarines and aircraft carriers or on smaller scale designs of existing large-scale reactors, offer enhanced safety, flexibility, and reduced construction risk. The UK is pioneering SMR deployment, with an initial order awarded to Rolls-Royce SMR and backed by the country’s new nuclear agency. North America is following suit, with GE Vernova securing SMR orders. France has also identified eleven prospects as part of France 2030 programme.
However, the field remains nascent, with over 80 SMR designs in development worldwide and significant uncertainty about which technologies will prevail. Costs are still high, and commercial viability will depend on scaling up production, reducing regulatory barriers and proving commercial business case. This being said, huge equity funding is required to kick start manufacturing of SMRs and Societe Generale is determined to assist the most promising developers in their equity raising exercise.

Nuclear’s Role in a Decarbonized Future

Nuclear power is not a panacea, nor a replacement for renewables, but a critical complement. As more countries seek reliable, low-carbon energy to meet net zero ambitions and bolster energy security, nuclear’s role is set to expand. At Societe Generale, we see civil nuclear as an essential part of the solution -- provided each project meets stringent criteria for safety, sustainability, and governance, according to our dedicated sector policy on civil nuclear power.
The world’s embrace of nuclear power is a pragmatic response to complex challenges. With continued innovation, responsible financing, and balanced policy support, nuclear energy can help power a cleaner, more secure future for all.