Context:

The International Atomic Energy Agency (IAEA)’s Climate Change and Nuclear Power report emphasizes the need for increased investment to expand nuclear power capacity globally.

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The International Atomic Energy Agency (IAEA) has released its 2024 report on "Climate Change and Nuclear Power" during the Clean Energy Ministerial (CEM) in Brazil.

Key Highlights of the Report

Why Nuclear Power Matters

As countries strive to secure their energy supply and cut down on carbon emissions, nuclear energy is emerging as a key player. The IAEA believes that to achieve net-zero emissions by 2050, there is a need to increase the use of clean energy technologies, including nuclear power. It predicts that nuclear capacity could grow 2.5 times its current level by mid-century, but this growth depends on ensuring adequate funding.

Investment Challenge

According to the report, global investments in nuclear energy need to rise from about $50 billion a year (the amount invested from 2017 to 2023) to $125 billion annually. If countries want to triple their nuclear capacity—a goal that over 20 nations committed to at COP28 —annual investments could exceed $150 billion.

Nuclear plants are cost-effective over their lifespan, the initial costs can be high, therefore private investment is crucial and multilateral development banks can play a significant role in helping developing countries to get better financing options for nuclear energy.

The report highlights the increasing interest in unlocking private sector funding for nuclear projects. During New York Climate Week, 14 major financial institutions; including some of the world’s biggest banks, showed their willingness to support new nuclear initiatives, which signals a promising shift towards financing clean energy projects.

Sustainable Financing

The report also touches on how including nuclear power in sustainable financing frameworks, like the European Union's taxonomy for sustainable activities, is making a real difference. For example, in 2023, Finland and France issued their first green bonds for nuclear power, with companies like Electricité de France (EDF) receiving substantial funding through these green initiatives.

Recommendations for Policy Changes

To meet climate goals, the world needs to increase nuclear capacity rapidly by 1.8 times by 2035, there is also a need for financing mechanisms to develop their workforce and supply chain necessary for this expansion.

The report suggested policy reforms and more engagement in international partnerships to bridge the finance gap; especially in emerging markets and developing countries. This includes creating strengthened regulatory frameworks, developing new models for project delivery, and engaging skilled labor.

About International Atomic Energy Agency (IAEA)

It promotes the peaceful use of nuclear energy and aims to prevent its use for military purposes, including nuclear weapons.

The IAEA has 178 member states, and collaborates with various international organizations, including the United Nations, the World Health Organization (WHO), and the Food and Agriculture Organization (FAO), to address global challenges and promote sustainable development.

Countries, even if not members of the UN or any of the specialized agencies, may be admitted by the General Conference of the IAEA upon recommendation of the Board of Governors.

India has been a founding member of the International Atomic Energy Agency (IAEA) since 1957.

Founding and Mission

The IAEA was established in July 1957, as an autonomous organization within the United Nations system. It was created in response to growing international concerns about nuclear weapons and the need for a global body to oversee the peaceful use of nuclear technology.

It reports to the General Assembly and the Security Council of the United Nations, and is headquartered at the UN Office at Vienna, Austria.

Its mission is encapsulated in its motto, “Atoms for Peace and Development.” It aims to promote the safe, secure, and peaceful use of nuclear technologies, contributing to international peace and security and supporting the United Nations’ Sustainable Development Goals.

Structure and Function

The General Conference is the highest policy making body of the IAEA, which has representatives from all member states. It meets annually to approve the budget and set policies.

The Board of Governors is responsible for making most of the policy decisions, it consists of 35 member states, which are elected by the General Conference.

The Secretariat is headed by the Director General, who is appointed by the Board of Governors and approved by the General Conference.

Key Activities

The IAEA sets international safety standards and provides guidance and support to ensure the safe and secure use of nuclear materials and technology.

It implements safeguards to verify that nuclear materials are not diverted to nuclear weapons or other nuclear explosive devices. This includes inspections and monitoring of nuclear facilities worldwide.

It provides technical assistance and support to member states, particularly developing countries, to help them use nuclear technology for peaceful purposes, such as in medicine, agriculture, and industry.

It conducts and supports research in nuclear science and technology, fostering innovation and the development of new applications.

Major Programs and Initiatives

The IAEA supports the development of nuclear power, as a sustainable energy source, it also provides guidance on reactor safety, fuel cycle management, and waste disposal.

It promotes the use of nuclear techniques in various fields, including health (radiation therapy and diagnostics), agriculture (improving crop yields and pest control), and environmental protection (monitoring pollution and managing water resources).

It plays a crucial role in the global non-proliferation regime by implementing safeguards agreements and additional protocols to ensure that nuclear materials are not used for military purposes.

Following the ratification of the Treaty on the Non-Proliferation of Nuclear Weapons in 1968, all non-nuclear powers are required to negotiate a safeguards agreement with the IAEA, which is given the authority to monitor nuclear programs and to inspect nuclear facilities.

Must Read Articles:

International Atomic Energy Agency (IAEA)

UNGA: https://www.iasgyan.in/daily-current-affairs/un-general-assembly

UNITED NATIONS SECURITY COUNCIL: https://www.iasgyan.in/daily-current-affairs/united-nations-security-council-unsc-45-18

Source:

IAEA

Wikipedia