IAEA Report On Climate Change & Nuclear Power from Vajirao & Reddy Institute

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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.