The EIB funds Finland as MDBs around the world embrace nuclear

The project: According to the EIB, the financing will support the modernization of automation and control systems at the plant, as well as the replacement of steam separators at Units 1 and 2.

Olkiluoto is a 3,355-MWe power plant comprising three reactors. Two are 890-MWe boiling water reactors that entered commercial operation in 1979 and 1982, while the third, a 1,575-MWe pressurized water reactor, reached full power only three years ago.

Aside from Olkiluoto, Finland has only one other nuclear power plant, the two-unit, 1,014-MWe Loviisa. Despite those few units, according to the International Energy Agency, about 40 percent of the country’s energy mix is nuclear.

The big picture: This funding represents an ongoing shift in the EIB, which previously had avoided funding nuclear-related projects. In 2024, Nadia Calviño became president of the bank and made her openness to funding new nuclear projects clear. In a 2024 interview with the Financial Times, she said that Europe “needs to be active because [it] cannot be behind the curve” on small modular reactors.

Since then, the EIB has provided €400 million ($461.3 million) in funding to Orano for a project to extend the Georges Besse II uranium enrichment plant in France.

Between Finland and France, it is clear that major nuclear funding is back on the table for the EIB. This change reflects a broader reconsideration of nuclear power by multilateral development banks (MDBs) around the world. Most notably, the World Bank reversed its longtime ban on nuclear funding in June of this year. Since then, it has partnered with the IAEA to cooperate on the construction and financing of advanced nuclear projects in developing countries.

Meanwhile, the Asian Development Bank (ADB)—which currently maintains a nuclear funding ban—is signaling a change in policy on the horizon. In October, ADB President Masato Kanda said, “We see nuclear power as an important option for countries that want to shift away from coal and gas baseload and cut emissions. ADB’s role will be to make nuclear safe, trusted, and investable.”