A Fusion Engine for Growth: A European Industrial Strategy for Fusion Energy

The report argues that while Europe possesses world-class R&D infrastructure and talent, its fusion energy sector is hindered by fragmented governance and an outdated sequential roadmap. It recommends shifting to a Key Enabling Technologies (KET)-based strategy, centralising governance under Fusion for Energy (F4E), and establishing a robust public-private partnership (PPP) framework to support startups and prevent 'brain drain' to the U.S. and China.

• Europe possesses significant inherent strengths in fusion energy, including the ITER project, a world-class supply chain managed by the Fusion for Energy (F4E) Joint Undertaking, and strong R&D infrastructure such as the Wendelstein 7-X stellarator and the Divertor Tokamak Test (DTT).
• The current EUROfusion roadmap is considered obsolete because it follows a sequential 'handoff' model (ITER to DEMO to commercial deployment) that does not align with the aggressive timelines of private fusion startups, which aim for grid connection by the early-to-mid 2030s.
• European fusion energy governance is fragmented and overlapping, primarily between F4E (focused on building/manufacturing) and EUROfusion (focused on research), which excludes private startups from decision-making and prevents the establishment of public-private partnerships.
• There is a critical lack of regulatory certainty in Europe, as fusion energy is often conflated with nuclear fission. The report notes that the U.K., U.S., and Japan have already moved toward 'fit-for-purpose' regulations that separate fusion from fission to attract investment.
• European fusion startups face a structural financing gap compared to U.S. counterparts due to capital markets that are undersupplied with long-term risk capital and a lack of a dedicated fusion-specific public-private partnership (PPP) programme.
• Europe risks a 'sticky' brain drain of STEM talent to the United States, driven by higher salaries and more abundant high-paying jobs in the private fusion sector, which could deplete the human capital necessary for domestic innovation.
• The report recommends shifting to a Key Enabling Technologies (KET)-based roadmap that prioritises commercially relevant R&D in a technology-neutral way, rather than focusing solely on the public-sector DEMO design.
• The report proposes elevating Fusion for Energy (F4E) as the sole public governance body for fusion energy in Europe to coordinate research, industrial engagement, and commercialisation.
• To improve competitiveness, the report suggests codifying fusion energy as a strategic green technology within the EU Green Taxonomy and the Net-Zero Industry Act (NZIA) to facilitate access to funding and fast-tracked permitting.

APA

Moore, J. (2025). A Fusion Engine for Growth: A European Industrial Strategy for Fusion Energy. Clean Air Task Force. https://www.catf.us/resource/fusion-engine-growth-european-industrial-strategy-fusion-energy/

Chicago

Moore, Jack. A Fusion Engine for Growth: A European Industrial Strategy for Fusion Energy. Clean Air Task Force, 2025. https://www.catf.us/resource/fusion-engine-growth-european-industrial-strategy-fusion-energy/.

Wikipedia

{{cite report |last1=Moore |first1=Jack |title=A Fusion Engine for Growth: A European Industrial Strategy for Fusion Energy |publisher=Clean Air Task Force |date=11 June 2025 |url=https://www.catf.us/resource/fusion-engine-growth-european-industrial-strategy-fusion-energy/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{moore2025fusion, author = {Moore, Jack}, title = {{A Fusion Engine for Growth: A European Industrial Strategy for Fusion Energy}}, institution = {Clean Air Task Force}, year = {2025}, month = jun, url = {https://www.catf.us/resource/fusion-engine-growth-european-industrial-strategy-fusion-energy/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }