nucleareurope co-organises COP 29 event on objective to triple global nuclear capacity by 2050
On 18 November 2024, nucleareurope Director General Yves Desbazeille intervened in an official United Nations Framework Convention on Climate Change (UNFCCC) side event co-organised by nucleareurope, the World Nuclear Association (WNA), the Nuclear Energy Institute (NEI) and the Japanese Atomic Industry Forum (JAIF). The event, held in Azerbaijan on the occasion of COP 29, explored solutions to turn the commitment to triple global nuclear capacity by 2050 into actions.
In his intervention, Yves highlighted that according to the latest ‘Pathways to 2050’ report, reaching 150GW of nuclear installed capacity in the EU by 2050 would entail having to build 116GW of new nuclear. If aiming for 200GW, 157GW of new nuclear would need to be built. He stressed that addressing the question of project financing was key to reaching such objectives.
“In terms of financing new nuclear projects, several models can be considered – for many countries, State Aid and government support will be key, including contracts for difference or even the Nuclear Regulated Asset Base (RAB) model currently applied in the UK” said Yves, adding that models integrating consumers investment in the project, similar to the Finnish Mankala model, should also be taken into account, especially for the financing of SMRs.
Yves highlighted however that even with government support, a significant volume of private investment is still needed. Noting that private investors expect a return on their investment, he stated that it was up to the industry to demonstrate the viability of projects, and to show that measures are being implemented to reduce the risk of overruns in terms of cost and time.
Concluding his intervention, Yves called for stable policies and a long term vision that focuses on goals instead of cherry picking technologies. He pointed out that even though -like many projects- nuclear mobilises high upfront investments, new nuclear reactors will be potentially operational for up to 100 years, and a long-term policy framework can help provide investors with the certainty that they are looking for in such long-term projects.