Major banks support tripling of nuclear energy use by 2050
Even though Australia’s anti-nuclear groups claim the clean energy option is not viable and political opponents continue to question the lack of financial details in Liberal party leader Peter Dutton’s nuclear policy, one thing is becoming abundantly clear.
Major players increasingly want to see nuclear energy use tripled by 2050.
Significant backing of an increased role for nuclear energy in the global energy transition has been tabled on the sidelines of Climate Week in New York City, with financial institutions, government representatives and industry executives all voicing their support.
COP28 initiative
25 nations have gathered in New York to endorse the Declaration to Triple Nuclear Energy launched at COP28 in 2023.
Countries supporting the declaration include Bulgaria, Canada, Croatia, the Czech Republic, France, Japan, the Republic of Korea, the Netherlands, Poland, Sweden, the United Kingdom and the USA.
14 financial institutions also expressed their support for the call to action, including sector giants such as Abu Dhabi Commercial Bank, Bank of America, Barclays, BNP Paribas, Citi, Goldman Sachs, Guggenheim Securities, Morgan Stanley and Société Générale.
Important role
John Podesta Jr, an American political consultant who has served as Senior Advisor to the US President for Clean Energy Innovation and Implementation since September 2022, highlighted the role of private sector finance in supporting global efforts to decarbonise power grids.
“Our collective mission is clear: nuclear energy is clean energy and, if we are to ensure a liveable 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,” he said.
Mr Podesta Jr said capital markets and financing can play a critical role in developing and growing nuclear energy projects worldwide.
Concrete action
Ebba Busch – Sweden’s Deputy Prime Minister and Minister for Energy, Business and Industry – said the time has come to take concrete action towards expanding nuclear energy’s role.
“The Swedish government is exploring a proposed financing model which includes government-backed loans, contracts-for-difference and risk-sharing mechanisms,” he said.
“The aim of the proposal is to significantly improve the conditions for nuclear new-builds in Sweden and, with it, a more sustainable future.”
Accelerated demand
Senior Managing Director of Guggenheim Securities James Schaefer said nuclear power is proven, with a number of nations now operating highly advanced and “commercially viable” third- and fourth-generation fission technologies.
“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 centres and AI technologies,” he said.
“This will require nuclear companies, plant owners, data centre and technology companies, together with banks and financial institutions, to collaborate closely.”