Nuclear Power: ESG Acceptable or Not?

Nuclear power is recognised for its low greenhouse gas emissions during operational phases, making it a vital component in efforts to mitigate climate change. According to the International Energy Agency (IEA) and the International Atomic Energy Agency (IAEA), nuclear power generates about 10% of global electricity with significantly lower CO2 emissions compared to fossil fuels, contributing to the levelling of global CO2 emissions at 33 gigatonnes in 2019​ (IEA)​​ (IAEA)​.

However, the environmental impact of nuclear power is not without its challenges. One of the major concerns is the handling of radioactive waste, which remains hazardous for thousands of years and requires secure, long-term storage solutions. There are also the risks associated with catastrophic failures, as highlighted by historical accidents like Chernobyl and Fukushima, which have had long-lasting impacts on the environment and public health​ (IEA)​​ (IAEA)​.

Economically, nuclear power requires substantial initial investments and has high costs associated with safety measures and decommissioning of plants. While these costs are significant, nuclear power plants generally have low operating costs once they are up and running. The IEA points out that without nuclear energy, achieving a net-zero carbon future would be more challenging and expensive due to the increased reliance on other less stable renewable sources​ (IEA)​​ (LSE)​.

The policy and technological landscape around nuclear power is evolving, with advancements such as Small Modular Reactors (SMRs) and extended lifetimes for existing plants, which could address some of the traditional challenges associated with nuclear power, such as high capital costs and inflexibility in operations​ (IEA)​​ (LSE)​.

Overall, while nuclear power offers significant benefits in terms of emission reductions and energy security, it requires careful management of its environmental risks and economic costs. Decisions on the adoption or expansion of nuclear power technology must balance these factors, considering the potential for technological advancements and improved regulatory frameworks to mitigate associated risks.