The International Atomic Energy Agency (IAEA) has released the 2024 edition of its Climate Change and Nuclear Power report, emphasizing the need for a substantial increase in investments to meet global nuclear power expansion targets.
This report was unveiled on the sidelines of the Clean Energy Ministerial (CEM) held in Brazil.
Amid growing global interest in nuclear energy as a means to enhance energy security and achieve decarbonization, the report indicates that nuclear power is set to play a crucial role in reaching net zero emissions by 2050. According to the IAEA’s high case scenario, global nuclear power capacity could expand by 2.5 times its current level by mid-century.
The report calls for a sharp rise in global investment in nuclear energy, suggesting a requirement of $125 billion annually—significantly up from the $50 billion per year invested from 2017 to 2023. For those countries aiming to triple their nuclear capacity by 2050, as pledged at COP28, the investment would need to reach at least $150 billion annually.
IAEA Director General Rafael Mariano Grossi highlighted the challenges of financing nuclear projects, particularly in market-driven economies and developing nations. He noted that both private sector involvement and support from multilateral development banks are essential for making nuclear energy investments more accessible to these countries.
The report also focuses on strategies to unlock private sector funding, an area gaining significant attention. Last month, during New York Climate Week, 14 major financial institutions, including some of the largest global banks, expressed their interest in financing new nuclear projects.
At the report’s launch event, organized alongside the CEM’s Nuclear Innovation: Clean Energy Future (NICE) initiative, Jean-Francois Garnier, Head of the CEM Secretariat, emphasized the importance of making clean energy, including nuclear power, more affordable and accessible to accelerate global energy transitions.
Discussions at the event involved stakeholders from various countries and organizations, including the International Energy Agency (IEA) and representatives from the U.S., focusing on capital investment strategies for nuclear power. Attention also turned towards COP29 in Baku, Azerbaijan, where financing the clean energy transition will be a key topic.
Sylvia Beyer, Senior Energy Policy Analyst at the IEA, stressed the urgency of expanding nuclear capacity by 2035 to meet climate goals. She pointed out the need for robust financing mechanisms that support the development of workforce and supply chains essential for scaling nuclear power.
The report concludes by advocating for policy reforms, international collaborations, and regulatory frameworks to bridge the financing gap for nuclear power expansion, particularly in emerging markets and developing economies.
