Effect of EU nuclear energy policy
Hi Team, Just wondering whether you see the new EU strategy to "increase nuclear energy" affect uranium ETFs such as URNM? I am surprised to see a drop in prices after the announcement. Thanks Alex
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Answer
Hi Alex,
Nuclear power generated just over a fifth of the EU’s electricity in 2022, with more than half of this produced in France. In total, there are more than 150 reactors operating across the 27 member states. This month saw 30 global leaders and delegations meet in Brussels to promote nuclear energy, as the role of nuclear power continues to divide Europe. While Belgium, Bulgaria, Croatia, Czechia, Finland, France, Hungary, Italy, the Netherlands, Poland and Sweden were among the signatories of a declaration which called on regulators to “fully unlock” the potential of nuclear there are plenty in the opposite corner.
- Overall we believe that while nuclear power is the only path to zero emissions it will take some time for many countries to embrace the move, especially where the Green Parties are strong.
The Global X uranium ETF (URA US) is only down less than 1% this week after rising 9.6% through 2024 – not a significant pullback. MM remains bullish towards the uranium sector, and a buyer of dips by the volatile space.
