On the sidelines of Climate Week in New York City, major banks, government representatives and industry executives recognised the role that nuclear energy can play in the global energy transition. Countries that endorsed the Declaration to Triple Nuclear Energy launched at COP28 in 2023 were joined by 14 financial institutions who expressed support for the 2050 target.

The event, which took place in the Rockefeller Centre in New York City, brought together heads of state, ministers and leaders from the nuclear and financial industries, along with heavy and power intensive industry executives, to recognise the role of private sector finance in supporting global efforts to decarbonise power grids.

The 14 financial institutions include: 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.

They recognised that global civil nuclear energy projects have an important role to play in the transition to a low-carbon economy. They expressed support for long-term objectives of increasing nuclear power generation and expanding the broader nuclear industry to support the energy transition.

In his opening remarks, Senior Advisor to the US President for International Climate Policy, John Podesta, noted: “Our collective mission is clear: nuclear energy is clean energy, and if we are to ensure a liveable 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. I know we can make it happen – as long as we work together.”

Support for nuclear energy by financial institutions builds on the December 2023 outcome of the first global stocktake under the Paris Agreement, which included nuclear among the zero- and low-emission technologies, as well as the Declaration to Triple Nuclear Energy, launched at the 28th UN Climate Change Conference and endorsed by 25 countries – Armenia, Bulgaria, Canada, Croatia, Czech Republic, Finland, France, Ghana, Hungary, Jamaica, Japan, South Korea, Moldova, Mongolia, Morocco, Netherlands, Poland, Romania, Slovakia, Slovenia, Sweden, Ukraine, UAE, UK and USA.

“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 said it is time to take concrete action towards necessary expansion of nuclear energy. “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, said new nuclear power is “both clean and safe, and more importantly proven”, with a number of nations now operating commercially viable third- and fourth-generation fission technologies. “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 centres and AI technologies. This will require nuclear companies, plant owners, data centre and technology companies, together with banks and financial institutions to collaborate closely.”

Mohamed Al Hammadi, Managing Director & CEO of the Emirates Nuclear Energy Corporation noted that since COP 28 there has been a step change in momentum across the nuclear sector, buoyed by a significant increase in demand for data centres and AI, with global power demand for this sector alone set to double by 2026. “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.”

Researched and written by Judith Perera