- On the sidelines of Climate Week in New York City, major banks, government representatives and industry executives recognized the role that nuclear energy can play in the global energy transition.
- Nuclear energy was included in the historic outcome of the first global stocktake under the Paris Agreement.
- Improving access to financing can help unlock nuclear energy's potential for significant decarbonization for zero-emission power and heat.
NEW YORK, Sept. 23, 2024 /PRNewswire/ -- Today, nations endorsing the Declaration to Triple Nuclear Energy launched at COP28 in 2023 were joined by 14 financial institutions who expressed support for the call to action to triple global nuclear energy capacity by 2050.
The group of financial institutions in the convening include: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co., Segra Capital Management, and Societe Generale.
The financial institutions recognized that global civil nuclear energy projects have an important role to play in the transition to a low-carbon economy. They further expressed support for long-term objectives of growing nuclear power generation and expanding the broader nuclear industry to accelerate the generation of clean electrons to support the energy transition.
With opening remarks from Senior Advisor to the President for International Climate Policy John Podesta, the event, which took place in the Rockefeller Center in New York City, brought together heads of state, ministers and leaders from the nuclear and financial industries, along with heavy and power intensive industry executives, to recognize the role of private sector finance in supporting global efforts to decarbonize power grids.
"Our collective mission is clear: nuclear energy is clean energy, and if we are to ensure a livable planet, build secure, sustainable supply chains for clean energy and bolster prosperity around the world, we need to make sure that nuclear energy does its part," said John Podesta, Senior Advisor to the President for International Climate Policy. "I know we can make it happen—as long as we work together."
Capital markets and financing can play a critical role in developing and growing nuclear energy projects worldwide. Financial institutions can provide experience, global presence, services and solutions to support the industry.
This expression of support for nuclear energy builds on the December 2023 outcome of the first global stocktake under the Paris Agreement, which included nuclear among the zero- and low-emission technologies that Parties should seek to accelerate, as well as the Declaration to Triple Nuclear Energy, launched at the 28th UN Climate Change Conference and endorsed by 25 countries.
"The only riddle left to solve is the financial side, the financial costs," said Dr. Robert Golob, Prime Minister of Slovenia. "Financial markets need to adapt and develop new financial instruments in order for nuclear energy to become competitive with other CO2-free energy sources."
"It is time to take concrete action towards necessary expansion of nuclear energy, said Ebba Busch," Minister for Energy, Business and Industry and Deputy Prime Minister of Sweden. "The Swedish government is exploring a proposed financing model which includes government-backed loans, Contracts-for-Difference (CfDs) and risk-sharing mechanisms. The aim of the proposal is to significantly improve the conditions for nuclear newbuild in Sweden and with it, a more sustainable future."
"New nuclear power is both clean and safe, and more importantly proven, with a number of nations now operating highly advanced and 'commercially viable' third- and fourth-generation fission technologies," said James Schaefer, Senior Managing Director of Guggenheim Securities. "It is essential that we accelerate the progression of planned projects into plants on the ground given the huge demand coming down the line for data centers and AI technologies. This will require nuclear companies, plant owners, data center and technology companies, together with banks and financial institutions to collaborate closely."
In the declaration, these nations recognized the importance of mobilizing finance and investment for nuclear power to help keep 1.5°C within reach, marking a significant shift in global climate policy and catalyzing a dialogue on the role nuclear energy can play in reducing global emissions.
"Including nuclear energy as a zero-carbon technology alongside renewables is essential to meeting the world's carbon reduction goals and ensuring that heavy industrial manufacturers like Nucor have a reliable and clean electricity supply to continue growing, prospering, and providing high-paying jobs," said Benjamin M. Pickett, Vice President & General Manager of Public Affairs & Government Relations, Nucor Corporation.
"Since COP 28 in Dubai last year, we have witnessed a step change in momentum across the nuclear sector, buoyed by a significant increase in demand for clean electrons for data centers and AI, with global power demand for this sector alone set to double by 2026," said Mohamed Al Hammadi, Managing Director and Chief Executive Officer of the Emirates Nuclear Energy Corporation. "With the support of 14 global banks and financial institutions witnessed this morning on the sidelines of New York Climate Week, it is clear that not only is nuclear energy viewed as a crucial enabler to decarbonize the power sector, but it also fits the profile for sustainable and transition financing, especially as we now see multiple nuclear plants being delivered efficiently, providing confidence to the market and a clear market signal that nuclear is a proven, bankable route to energy security and net zero in parallel."
The 25 nations endorsing the Declaration to Triple Nuclear Energy include Armenia, Bulgaria, Canada, Croatia, Czech Republic, Finland, France, Ghana, Hungary, Jamaica, Japan, Republic of Korea, Moldova, Mongolia, Morocco, Netherlands, Poland, Romania, Slovakia, Slovenia, Sweden, Ukraine, United Arab Emirates, United Kingdom, and the United States of America.