FIA Calls for Targeted Support for Fusion Startups in the EU Startup and Scaleup Strategy

On March 17th, the Fusion Industry Association (FIA) submitted feedback to the European Commission’s public consultation on the upcoming EU Startup and Scaleup Strategy. The Strategy, set to be adopted this year, is expected to address the difficulties that European start-ups and scale-ups face in accessing capital, markets, services, infrastructure as well as talent needed to enable them to thrive in Europe and compete globally.

In its feedback, the FIA highlighted that fusion start-ups face unique challenges that require specific policy interventions. It called for a reassessment of EU funding mechanisms to better support capital-intensive, long-term innovations, advocating for more flexible financial instruments such as milestone-based grants and loan guarantees aligned with the needs of the fusion sector.

The FIA also pointed to the complexity and prolonged timelines of EU funding applications as significant barriers, recommending that the Commission streamline these processes and improve transparency in funding calls. Given the critical role of public-private partnerships (PPPs) in providing long-term financing and access to infrastructure, FIA stressed the importance of an inclusive approach in the EU’s GO4Fusion project. 

To attract greater private investment, FIA emphasized the need for de-risking mechanisms, including via European Investment Bank (EIB) loan guarantees, which would enable fusion startups to scale more rapidly. Additionally, it underscored the importance of completing the EU’s Capital Markets Union to create a more integrated and liquid venture capital market, lowering barriers for investment in high-risk, long-term projects.

Regulatory clarity is another essential factor for the sector’s success. The FIA called for a dedicated regulatory framework for fusion, distinct from nuclear fission, and urged the EU to explicitly recognize fusion as a stand-alone clean technology in the Net-Zero Industry Act (NZIA) and the EU Taxonomy for Sustainable Finance.

By improving access to capital, simplifying funding procedures, and fostering stronger public-private collaboration, the EU has an opportunity to position itself as a global leader in commercial fusion energy.

March 28, 2025