14 international banks and financial institutions have expressed their support for nuclear power by 2050

Last December, at the United Nations Climate Change Conference (COP28) in Dubai, the 198 signatory countries of the United Nations Framework Convention on Climate Change (UNFCCC) called for accelerated deployment of low-emission energy technologies, including nuclear power, to achieve rapid and deep decarbonisation, particularly in hard-to-decarbonise sectors such as industry. In addition, 25 countries have pledged to work towards tripling global nuclear capacity by 2050 in order to achieve carbon neutrality.

In conjunction with New York Climate Week, 14 banks and financial institutions announced their support for the development of nuclear power, which is seen as a key pillar in the transition to a low-carbon economy. These institutions include Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities, Morgan Stanley, Rothschild & Co, Segra Capital Management and Société Générale. These banks and asset managers stressed the importance of financing nuclear projects to support the global energy transition.
 

The CSFN and their partners

According to the World Nuclear Association, financial markets can play a crucial role in the development of nuclear energy by bringing experience, global presence and tailored solutions to support the industry. The statement was supported by John Podesta, Senior Advisor for International Climate Policy to President Biden. He said that nuclear power is the clean energy essential to ensuring a liveable future, creating sustainable supply chains for renewable energy and supporting global prosperity. In his view, this can only be achieved through close collaboration between the various players.

The Slovenian Prime Minister, Robert Golob, stressed that the main challenge to be resolved remained the financing of nuclear projects. He called on the financial markets to adapt and develop new financial instruments to make nuclear energy competitive with other low-carbon energy sources. For her part, Ebba Busch, Sweden's Minister for Energy, Business and Industry, explained that the Swedish government was exploring new financing models, including state-guaranteed loans, contracts for difference (CfDs) and risk-sharing mechanisms. The aim is to create more favourable conditions for the construction of new nuclear power plants in Sweden, thereby contributing to a more sustainable future.

Last month, a Swedish government study also proposed granting state aid to companies investing in new nuclear infrastructure, with clear regulations on the conditions and application procedures for receiving this support.

James Schaefer, Managing Director at Guggenheim Securities, emphasised that next-generation nuclear fission technologies are not only safe and clean, but also commercially viable. He stressed the need to speed up the construction of power plants that are still at the planning stage, pointing to the massive demand for electricity in sectors such as data centres and artificial intelligence (AI) technologies. In his view, this requires close collaboration between power plant operators, technology companies and financial institutions.

Mohamed Al Hammadi, Managing Director of Emirates Nuclear Energy Corporation and Chairman of the World Nuclear Association, observed a significant change in the dynamics of the nuclear sector since COP28, particularly due to the increase in demand for clean energy for data centres and AI technologies. He noted that this demand is expected to double by 2026. He also welcomed the support of the 14 global financial institutions, stressing that nuclear energy was now seen as a key factor in decarbonising the energy sector. He added that the efficient construction of recent nuclear power plants was helping to build market confidence and demonstrating that nuclear power was a viable solution for ensuring energy security and meeting carbon neutrality targets.

You can read the World Nuclear News article here: https://www.world-nuclear-news.org/articles/international-banks-express-support-for-nuclear-expansion