During the past year, the nuclear industry has seen significant milestones in international cooperation, domestic partnerships, new areas of expansion, and global recognition. Nuclear energy is poised to accomplish even more in the coming year.
As the new year begins, we’ve identified five big moments to watch for in 2022.
- Actions addressing the climate crisis
As this year’s IPCC report warned, global warming is happening much quicker than we originally thought. In short, the climate crisis isn’t coming…it’s here. Between uncontrollable wildfires, major hurricanes, droughts and heat waves, extreme weather is one of the most visible consequences of global warming, and it’s now the norm. The IPCC is planning to release its reports on impacts, adaption, and vulnerability; the mitigation of climate change; and the synthesis of the three Working Groups contributions this year.
In 2022, we will look for progress on the net zero commitments pledged by countries at this year’s COP26. Among many climate events in the upcoming year, look out for the Clean Energy Ministerial, a collective public and private effort to create a net-zero economy, which will be held in the U.S. this September.
As the momentum around clean energy builds, our world must focus on net zero to meet our climate goals, and nuclear energy is a champion of decarbonization, of the electricity sector and beyond. Its carbon-free, always-on attributes make it the perfect pairing with intermittent renewables such as wind and solar. We need all the tools we have to conquer the climate crisis.
- Continued support for nuclear energy from the Biden Administration and Congress
The industry has seen strong bipartisan support from Congress this year, and the Biden Administration has signaled its “bullish” support of new nuclear.
The Build Back Better Act is poised to hopefully pass in early 2022, which includes a production tax credit (PTC) for electricity generated by nuclear power plants in operation today, as well as a PTC for all clean electricity technologies, including advanced nuclear and power uprates that begin construction after 2026. The bill also includes funding for the development of a domestical HALEU supply.
We also saw a historic budget request from the administration in 2020 and early next year will look for strong funding for the DOE’s Office of Nuclear Energy, along with a robust FY 2023 budget request.
It’s also important to note the flurry of activity at the state level as exploration for new nuclear expands across the country.
- Increased attention and funding towards climate finance
Momentum continues to build around Environmental, Social, and Governance (ESG) commitments, and the role of financial investments in the global clean energy transition is more important than ever. In the new year, we can expect to see continued efforts to explore climate-related financial disclosures, corporate behavior promoting greener portfolios, and governments figuring out how to effectively assist developing countries to meet their climate goals.
A key player in what steers public, as well as private, investments is the European Commission’s sustainable finance taxonomy, which decides what counts as green investments.
Late last year the European Commission began expert consultations on a second delegated act that would include nuclear energy under certain circumstances in the taxonomy. Over the coming months, we will observe further deliberations within the EU on the adoption of this regulation which could be implemented by early 2023.
- Expanded applications for nuclear energy
Existing nuclear plants will keep us on track to meeting our climate goals, and new nuclear technologies will propel us forward to meeting the moment—a net zero future.
Advanced nuclear is designed to provide carbon-free energy in new and innovative ways and have valuable applications such as carbon-free hydrogen production. Nuclear also is uniquely positioned to fill the void created by coal plant closures by utilizing existing infrastructure and talent.
In 2022, work on the reactor projects funded through the DOE Advanced Reactor Demonstration Program and privately funded projects in the U.S. and Canada will begin to accelerate. It is also likely that the Nuclear Regulatory Commission will receive additional applications for advanced reactors and/or fuel cycle facilities. The interest in advanced nuclear has grown considerably over the last few years, and we expect this to continue in 2022.
- Focus on the green economy
As we transition to a clean energy economy, job generation and economic stimulation will be essential to ensuring no community is left behind. Experts and economists will be looking for these hallmarks of green growth in the coming year.
Nuclear energy is an important part of the equation because nuclear plants provide high-paying, lasting jobs. Nuclear employs a large number of veterans, creates jobs for multiple generations of workers, and pays higher salaries than other electricity generation sources.
Nuclear is prepared to meet these moments. It has a proven track record of providing reliable, affordable, carbon-free energy, all while stimulating local economies where plants are located. With growing support from both domestic policies and international organizations, nuclear energy has an undeniable role in addressing the largest moment of all—the climate crisis.
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