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Climate Change: Emissions: Weather: Investment: Lending: Insurance
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Features, April 2001

Climate Change

Could concern over global warming give nuclear power a new lease of life? David Robson and Graham Cooper investigate

Reading the signals: will more nuclear power
plants get the green light? New hopes for nuclear?

The world's nuclear power industry seems to have new cause for optimism after spending much of the past 25 years on the defensive. On 7 March, US senator Pete Domenici (Rep, New Mexico) introduced a new bill - the Nuclear Energy Electricity Assurance Act - that aims to boost the use of nuclear energy in the US. In mid-month, it was revealed that China intends to add some 12,000 MW of new nuclear capacity over the next five years. And late last year Finnish energy company Teollisuuden Voima revealed plans to build the country's fifth nuclear power station.

This latter announcement came during COP 6, the United Nation's annual meeting on climate change, held last year in The Hague. The timing was no accident. Many in the industry believe growing concern about global warming could be the industry's salvation.

Explicit political support for this view came on 21 March when US vice-president Dick Cheney said during a television interview, "if you want to do something about carbon dioxide emissions, then you ought to build nuclear power stations." Cheney also heads a White House task force that is preparing recommendations on how the US can boost its domestic energy supplies.

Nuclear power's great selling point in the context of climate change is that it creates virtually no greenhouse gas (GHG) emissions. So, if fears about climate change begin to override concerns about radiation, waste disposal and nuclear proliferation that have dogged the industry since the late 1970s, the nuclear industry believes it could get a new lease of life.

There is evidence to suggest that public fear of nuclear power is starting to fade. In a January poll of 1000 US adults, commissioned by the Nuclear Energy Institute (NEI), an organisation representing US nuclear plant operators, 64% said they agreed with the statement: "We should keep the option to build more nuclear energy plants in the future". 29% disagreed. The comparable percentages in a October 1999 poll were 60% and 33%. A majority (51% in January) agreed with the statement: "We should definitely build more nuclear energy plants in the future." The apparent shift in sentiment was confirmed by responses to a third proposition: "We should shut down all nuclear energy plants". 21% agreed with this while 52% disagreed.

But nuclear power is still a bête noire for many environmental groups. "It's an inherently unsafe technology," says Roger Higman, senior climate campaigner with Friends of the Earth. "We are strongly opposed to it."

When the latest NEI poll was conducted, California was in the midst of a series of well-publicised blackouts which undoubtedly influenced responses. But the state's problems look set to continue for months, if not years, to come. Further blackouts occurred in mid-March when residents felt a need to switch on their air conditioning and state governor Gray Davis has warned that more power interruptions are likely this summer.

Adding to US support for nuclear power is mounting concern over oil and gas prices, both of which rose sharply last year, and worries about a mounting reliance on natural gas. But outside the US, climate change is a more important driver.

"We can't avoid nuclear power if we want to fulfill the Kyoto commitment," EU Energy Commissioner Loyola de Palacio said in an interview with Finnish television in February. The 1997 Kyoto Protocol is an international agreement to reduce emissions of GHGs which are generally accepted to be making a significant contribution to global warming. Under the terms of this agreement, industrialised nations pledged to cut their GHG emissions to 94.8% of their 1990 level by 2010. The EU target is for a 8% reduction.

But, within the EU executive itself, there are strongly held opinions on both sides of the argument. Environment Commissioner Margot Wallstrom, for example, takes a quite different view from her colleague de Palacio: "We have to look at sustainable solutions and, if we create a huge waste problem, that is not sustainable," she said after the COP 6 meeting.

Some member states have already decided that nuclear will play no part in their long-term energy plans, but seem to be in no rush to implement the decision. The Swedish government vowed in 1980 phase out its 12 nuclear plants by 2010. It shut down one in 1999 but closure of the second has been postponed from this year to 2003 and opinion polls in the late 1990s suggest less than 20% of the population now favour early closure. The government seems to have no plan to replace this nuclear capacity, says Greenpeace campaigner Tarjei Haaland, in Copenhagen.

Germany, where the Green party shares power with Social Democrats, announced last year that it, too, would phase out its nuclear capacity. But, to the dismay of its vociferous anti-nuclear lobby, it set a leisurely timetable which will see many plants running for most of their design life. Some will still be operating in 2030.

In neighbouring France, on the other hand, where the public is ever ready to take to the streets to protest against unpopular government decisions, the anti-nuclear lobby has had little impact. Around 75% of French electricity comes from nuclear plants - a higher share than in any other country. Like most other European nations, France plans a substantial boost in its use of renewable energy, but this will not have much impact on the total power mix for many years. "France has no oil, very little gas and its coal seams were already running out in the 1950s. Its hydroelectric resources are used to the full and other non-fossil energy sources are in their infancy," junior industry minister Christian Pierret told a nuclear energy meeting in Paris last July.

Japan has a similar dependency on imports of fossil fuels and, until recently, has been another strong advocate of nuclear power. The country currently has 51 nuclear reactors, generating around one third of its electricity. It planned to add up to a further 20 reactors by 2010 until an accident at a nuclear reprocessing facility some 90 miles from Tokyo in 1999 dented public confidence in the technology. These plans are now under government review.

Most of the countries that have pledged to reduce their emissions under the Kyoto agreement have large nuclear portfolios, notes Maureen Koetz, environmental policy director of the NEI. It was assumed that these nations would keep their nuclear plants running when the targets were agreed to, she says.

And, the NEI notes, nuclear plants also make a substantial contribution to the nation's clean air efforts as they emit no sulphur dioxide or nitrogen oxides, the main causes of acid rain and smog.

There are currently more than 430 nuclear plants in existence. Most of them were built in the 1970s and 1980s and typically have a design life of around 40 years. So, unless they are shut down early, most will still be operating during the first commitment period of the Kyoto Protocol (2008-12). These stations account for some 17% of global electricity generation. Among OECD nations, the share ranges from 4% to 75% and averages around 24%. If this power came from fossil fuels, global emissions of carbon dioxide would be 1.8 billion tonnes/year higher, says the International Nuclear Forum (INF), grouping of several nuclear industry associations from around the world. This means the industry should be given credit for avoiding GHG emissions, just as wind power or solar power will be, it argues.

If the US is to reach its Kyoto target of reducing its emissions of GHGs to 7% below their 1990 level by 2008-12, the US will need to reduce its emissions by 272 million tonnes. If nuclear power were removed from the energy mix before this time, the savings required would rise to more than 400 million tonnes, the NEI says. And, while these figures may be of only academic interest, given President Bush's hostility to the Kyoto agreement, similar figures apply in many other industrialised nations.

Yet there is a consensus among climatologists that the Kyoto goals represent only a small step towards the reductions that will be eventually be needed. They say that total cuts of 60% below 1990 levels which will be required if the concentration of GHGs in the atmosphere is to be stabilised at a level low enough to prevent dangerous climate change.

But even this goal could be achieved, in some countries, without any nuclear power, says Higman at Friends of the Earth, citing a recent study by the UK's Royal Commission on Environmental Pollution. This showed that it would be possible for the UK to achieve a 60% cut in GHGs by 2050 by greatly expanding its use of renewables and energy efficiency measures. However, the no-nuclear scenarios assumed energy demand in 2050 could be reduced to less than 63% of what it was in 1998 and that living standards may decline.

Many industrialised nations have launched aggressive plans to boost the share of electricity they derive from renewable sources but, even under the most optimistic forecasts, renewables are unlikely to contribute more than 39% of primary traded energy by 2050, according to the World Energy Council.

According to Nuclear Energy Agency, a semi-autonomous body within the OECD, electricity demand is likely to grow by 3% a year worldwide over the next two decades, but by at least 5%/year in the developing countries, on a business-as-usual projection. This would necessitate a doubling of the current world generating capacity of about 3,000GWe by 2020 in addition to the replacement of about 600GWe of obsolescent plant, it notes.

Against this background, it would be perverse to exclude nuclear power from the suite of emission reduction approaches proposed in the Kyoto Protocol, the industry says. One of the few decisions at the ill-fated COP 6 meeting, however, was to do just that. Despite stiff opposition from the US, Japan, Canada and others it was agreed at the November meeting that nuclear power plants would not be eligible for carbon credits within the Clean Development Mechanism (CDM), the scheme proposed in the Protocol to reward projects in developing countries which avoid or prevent emissions of GHGs.

But, says Jonathan Cobb, nuclear policy manager at British Nuclear Fuels, there is no guarantee that this agreement will be retained when the suspended COP 6 negotiations reconvene in July in Bonn. Several nations have objected to the exclusion of nuclear power since The Hague meeting. And, he notes, the exclusion agreement referred only to CDM projects. Joint Implementation (JI) - a separate mechanism for rewarding projects which reduce or avoid emissions in industrialised nations - was not mentioned.

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