Global banking giants pledge support for nuclear energy
Pamela Largue
Posted on: 24 September 2024
Global banks have expressed support to triple global nuclear energy capacity by 2050 at an event alongside New York Climate Week.
A group of 14 financial institutions have expressed support for the call to triple global nuclear energy capacity by 2050 at an event that took place alongside Climate Week in New York City.
The event brought together heads of state, ministers and leaders from the nuclear and financial industries to recognise the role of private sector finance in supporting global efforts to decarbonise power grids.
The financial institutions recognised that global civil nuclear energy projects have an important role to play in the energy transition and expressed support for expanding the broader nuclear industry to accelerate the generation of clean electrons.
The following financial institutions pledged support: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co., Segra Capital Management, and Societe Generale.
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"Our collective mission is clear: nuclear energy is clean energy, and if we are to ensure a livable 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," said John Podesta, senior advisor to the president for International Climate Policy.
This expression of support builds on the Declaration to Triple Nuclear Energy launched at COP28 and aims to use the critical role of capital markets and financing to grow the nuclear industry.
"The only riddle left to solve is the financial side, the financial costs," said Dr. Robert Golob, prime minister of Slovenia. "Financial markets need to adapt and develop new financial instruments in order for nuclear energy to become competitive with other CO2-free energy sources."
Ebba Busch, minister for Energy, Business and Industry and Deputy Prime Minister of Sweden, commented: "The Swedish government is exploring a proposed financing model which includes government-backed loans, Contracts-for-Difference (CfDs) and risk-sharing mechanisms. The aim of the proposal is to significantly improve the conditions for nuclear newbuild in Sweden and with it, a more sustainable future."
James Schaefer, senior managing director of Guggenheim Securities added that nuclear power is increasingly important to power new data centres, a point illustrated by the recent announcement that Pennsylvania’s Three Mile Island Unit 1 is being reopened to power Microsofts data centres in the area.
Said Schaefer: "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 centers and AI technologies. This will require nuclear companies, plant owners, data center and technology companies, together with banks and financial institutions to collaborate closely."
Mohamed Al Hammadi, managing director and CEO of the Emirates Nuclear Energy Corporation, also commented on the commitment: "With the support of 14 global banks and financial institutions witnessed this morning on the sidelines of New York Climate Week, it is clear that not only is nuclear energy viewed as a crucial enabler to decarbonise the power sector, but it also fits the profile for sustainable and transition financing, especially as we now see multiple nuclear plants being delivered efficiently, providing confidence to the market and a clear market signal that nuclear is a proven, bankable route to energy security and net zero in parallel."
