IAEA REPORT ON CLIMATE CHANGE & NUCLEAR POWER
- The 2024 edition of the International Atomic Energy Agency (IAEA) report on Climate Change and Nuclear Power was released, emphasizing the need for a significant increase in investment to meet goals for expanding nuclear power.
- The report was launched last week during the Clean Energy Ministerial (CEM) in Brazil.
KEY FINDINGS
Growing Interest in Nuclear Power
- Global Interest: Nuclear power is gaining traction as countries aim to enhance energy security and reduce carbon emissions.
- Net Zero Goals: A rapid expansion of clean energy technologies is necessary to achieve net zero emissions by 2050. The IAEA predicts a capacity increase of 2.5 times the current level by mid-century in its high-case scenario.
Investment Needs
- Current Investment: Global investment in nuclear energy must increase to $125 billion annually, up from around $50 billion invested each year from 2017 to 2023, to meet the IAEA’s high case projection for nuclear capacity by 2050.
- Aspirational Goal: Tripling of capacity, which more than 20 countries pledged to work towards at COP28 last year, would require upwards of $150 billion in annual investment.
Challenges in Financing
- Director General’s Statement: IAEA Director General Rafael Mariano Grossi noted, “Across its near century-long lifetime, a nuclear power plant is affordable and cost competitive. Financing the upfront costs can be a challenge, especially in market-driven economies and developing countries.”
- He emphasized the need for the private sector and other institutions to contribute to financing.
- Engagement with Development Banks: The IAEA is working with multilateral development banks to enhance financing options for developing countries investing in nuclear energy.
Unlocking Private Sector Finance
- Global Interest: Last month, 14 major financial institutions, including some of the world’s largest banks, gathered during New York Climate Week to show their willingness to help finance new nuclear projects.
- CEM Role: The report was presented at a side event organized by the IAEA and the CEM’s Nuclear Innovation: Clean Energy Future (NICE) initiative, which promotes policies to advance clean energy technology and share best practices.
Collaboration and Discussions
- Key Participants: The side event featured speakers from Brazil, the IAEA, the International Energy Agency (IEA), and the USA, discussing how to secure capital for nuclear power projects.
- Future Outlook: Financing the clean energy transition will be a significant topic at COP29 in Baku, Azerbaijan.
Impact of Sustainable Financing
- EU Taxonomy: Nuclear power’s inclusion in sustainable financing frameworks, such as the European Union (EU) taxonomy for sustainable activities, is making a tangible impact.
- The first green bonds for nuclear power were issued in Finland and France in 2023.
- EDF’s Involvement: Electricité de France (EDF) received €4 billion in green bonds and around €7 billion in green loans between 2022 and 2024.
RECOMMENDATIONS FOR THE FUTURE
- Capacity Growth: To achieve climate change goals, global nuclear capacity needs to increase rapidly, by a factor of 8 by 2035, according to Sylvia Beyer, a Senior Energy Policy Analyst at the IEA.
- Needed Financing Mechanisms: Financing mechanisms that support scale, workforce, and supply chain development are essential.
- Policy Reform: The report advocates for policy reform and international partnerships to bridge the financing gap and accelerate nuclear power expansion in emerging markets and developing economies, including for small modular reactors.
ABOUT IAEA
- The IAEA is the leading international forum for scientific and technical cooperation in the nuclear field.
- It is commonly known as the “Atoms for Peace and Development” organization within the United Nations system.
- The agency promotes the safe, secure, and peaceful use of nuclear science and technology.
- Headquarter Location: Vienna, Austria
- Membership: Currently has 178 member states.
History
- Establishment: The IAEA was created as an independent organization through its own international treaty, known as the IAEA Statute.
- It operates autonomously but reports to both the United Nations General Assembly and the Security Council.
STRUCTURE
- General Conference: This body consists of all member states and meets annually to approve the budget, programs, and discuss general policies of the IAEA.
- Board of Governors: Made up of 35 members who meet about five times a year. They are responsible for carrying out the agency’s functions, approving safeguards agreements, and appointing the director general.
FUNCTIONS
- Promotion of Nuclear Technologies: Works with member states and global partners to promote the safe and peaceful use of nuclear technologies.
- Nuclear Safeguards: Implements monitoring, inspections, and information analysis to ensure that nuclear activities remain peaceful and to prevent diversion to weapons-related purposes.
- NPT Safeguards: Enforces comprehensive safeguards agreements mandated by the Nuclear Non-Proliferation Treaty (NPT), acting as a defense against the spread of nuclear weapons.
- Technical Assistance: Provides assistance to member states and promotes the exchange of scientific and technical information.
- Incident Response: Enhances capacities to respond to nuclear and radiological incidents, which is crucial for minimizing their impacts.
Note: Connect with Vajirao & Reddy Institute to keep yourself updated with latest UPSC Current Affairs in English.
Note: We upload Current Affairs Except Sunday.