Sweden pledges state-backed nuclear investment in historic energy policy shift

Story Timeline
10 days · 7 summary articles
The Swedish government on Thursday announced a historic state-backed investment in new nuclear power, marking a sharp pivot in the country’s energy policy as Europe grapples with competing climate and industrial priorities. Under an agreement reached by the Tidö coalition partners, the state will provide direct financial support and take an ownership stake in Videberg Kraft, a company slated to build new reactors. Prime Minister Ulf Kristersson called the decision “historic,” underscoring its significance for Sweden’s energy security and decarbonisation goals.
The move comes as EU environment ministers meet in Luxembourg, where divisions over climate ambition have deepened amid record heatwaves across the continent. While most governments publicly endorse phasing out fossil fuels, several—including Sweden—are simultaneously advancing policies that critics argue undermine long-term climate objectives. Sweden’s decision to bankroll new nuclear capacity follows months of debate over how to reconcile rapid emissions cuts with industrial competitiveness, particularly in energy-intensive sectors.
The announcement aligns with broader European tensions over state aid and green investment rules. Earlier this week, Politico reported that several EU member states are pushing to classify oil and gas exploration as “green” investments, a proposal that could allow fossil fuel giants like TotalEnergies to access sustainable finance funds. The shift reflects growing unease among governments facing dual pressures: meeting legally binding climate targets while shielding industries from high energy costs and supply risks.
In a parallel development, Turkey’s Environment Minister Murat Kurum revealed plans to raise the country’s recycling rate from 37% to 80% by 2053, alongside new restrictions on single-use plastics and a deposit return system launching next month ahead of COP31 in Antalya. Speaking to *Yeni Şafak*, Kurum framed the measures as part of a broader circular economy strategy, though he did not detail funding mechanisms for the $2.5 trillion annual financing gap facing developing nations by 2030—a gap highlighted by Turkish Treasury and Finance Minister Mehmet Simsek, who argued that climate action is essential for economic stability.
Meanwhile, the EU’s methane rules face pushback from the US and Qatar, which have warned Brussels that stricter regulations could disrupt gas supplies. The dispute, reported by *Gulf Times* and *Hot96*, threatens to derail negotiations on the bloc’s energy transition, even as climate leadership faces growing scrutiny. A commentary in the *New Statesman* warned that retreat from ambitious targets risks locking in investment and health costs for generations.
Back in Sweden, the government’s nuclear push has drawn criticism from environmental groups, who argue that state funds would be better directed toward renewables. Agriculture Minister Jaimi van Essen, meanwhile, is set to unveil a softer approach to nitrogen reduction targets, seeking to balance ecological goals with sectoral concerns—a strategy that has drawn scepticism from advocates who insist tougher measures are overdue.
Follow us for live European news
- 3
- 2
- 1
- 1
- 1
- 1
- 1
- 1
- 1
2 further sources not geolocated


