Nuclear is an essential component of Europe’s energy mix and can help accelerate decarbonisation in a cost-efficient way, a report by the former prime minister of Italy, Mario Draghi, says.

The report on the future of Europe’s competitiveness says the use of long-term financing solutions such as power purchase agreements and contracts for difference can “decouple” the remuneration of nuclear and renewables from fossil fuel generation and protect end users from more volatile fossil fuel prices.

The report, prepared for the European Commission, underlines the need to mobilise both public and private finance with “massive investment needs unseen for half a century in Europe”.