Many proponents of nuclear power insist that it should be included in low-carbon energy programs to help fight climate change. Opponents of nuclear power say that nuclear power should not be included in low-carbon energy program.
     The U.K. Green Financing Framework explains how the U.K government plans to finance spending through the issuance of green gilts and the retail Green Savings Bonds. It says that these programs will be crucial in mitigating climate change and dealing with other environmental challenges. The Framework was produced and published yesterday by the Treasury. It lays out the basis for identification, selection, verification and reporting of the green projects that are eligible for such financing.
     Under the section on ‘exclusions’, the document says, “Recognizing that many sustainable investors have exclusionary criteria in place around nuclear energy, the UK government will not finance any nuclear energy-related expenditures under the Framework. The UK government, however, recognizes that reaching net zero emissions will require all energy to be delivered to consumers in zero-carbon forms and be derived from low-carbon sources. Nuclear power is, and will continue to be, a key part of the UK’s low-carbon energy mix alongside solar and wind generation and carbon capture and storage. All these technologies are important in tackling climate change and diversifying the UK’s supply, contributing to the UK’s energy security and sustainable growth.”
     The Framework aligns with the 2021 International Capital Market Association Green Bond Principles. This is being done “To enable investors to follow the progress and positive impact delivered.” The U.K. is also in the process of creating its own “green taxonomy”.
     At the same time, a group of five E.U. Members, led by Germany, have written to the European Commission asking for nuclear power to continue to be excluded from the E.U. Taxonomy on Sustainable Finance. Their letter follows the assessment of the Joint Research Center (JRC). The mission of the JRC is to support E.U. policies with independent evidence throughout the whole policy cycle to the effect that nuclear power causes no more harm to human health or the environment than any other power-producing technology considered to be sustainable.
      The letter was signed by the environmental or energy ministers of Austria, Denmark, Germany, Luxembourg and Spain. It points to the ‘shortcomings’ in the JRC report which was published in April. The ministers who signed the report said that the JCR’s conclusion was “a misconception” and was based on “two grave methodological shortcomings.” The JRC “neglects to address the residual nuclear risk, assessing only the normal operation of nuclear power plants” and “disregards the life-cycle approach”. They also wrote that, “We recognize the sovereign right of Member States to decide for or against nuclear power as part of their national energy systems. However, we are concerned that including nuclear power in the Taxonomy would permanently damage its integrity, credibility and therefore its usefulness.”
      The two expert groups charged b the European Commission with the review of the JRC report on the sustainability of nuclear energy published their assessments today. The Article 31 group largely agrees with the conclusions of the JRC report while the Scientific Committee on Health, Environmental and Emerging Risks recognizes its own lack of the required expertise to carry out this assessment but does mention some concerns about the conclusion of the JRC report.