14 Major Banks Pledge Support to Triple Nuclear Capacity by 2050

During Climate Week in New York City, banks, government officials, and industry experts talked about how important nuclear energy is for reducing global carbon emissions.

As climate talks heated up, 14 top banks and financial institutions promised to help triple the world’s nuclear energy capacity by 2050. This plan, first introduced at COP28 in 2023, is now widely supported by the financial world. They understand that nuclear energy is key to cutting carbon emissions.

Some of the banks backing this move include Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, and Citi, along with others like Morgan Stanley and Societe Generale.

The goal is to speed up the development of nuclear technologies, which are necessary for creating low-carbon power grids and meeting the growing demand for clean energy.

A Key Moment for Nuclear Energy Funding

At an event held at the Rockefeller Center, John Podesta, Senior Advisor to the President for International Climate Policy, opened the meeting. He addressed leaders from governments, nuclear energy companies, and the finance industry, stating that working together is essential. He said, "Our goal is simple: make nuclear energy a major part of a secure and sustainable future."

The first-ever global stocktake, completed under the Paris Agreement, also pointed out the importance of nuclear energy. It showed that nuclear power is a crucial technology for achieving zero-emission goals.

Banks and financial markets have the expertise to gather the funds needed to take nuclear projects from ideas to reality. The future of nuclear power depends on innovative funding and investments.

Tackling Financial Challenges

Financing nuclear energy projects is still a big challenge. Dr. Robert Golob, Prime Minister of Slovenia, explained this issue, saying, "The real obstacle now is financial—markets need to find new ways to make nuclear energy as affordable as other clean energy sources."

Countries around the world are looking at ways to fund nuclear projects. Sweden's Energy Minister, Ebba Busch, shared that Sweden is exploring options like government-backed loans and Contracts-for-Difference (CfDs) to help nuclear energy grow.

To overcome these financial challenges, governments, nuclear developers, and banks need to work together. This partnership is key to unlocking the large investments needed for nuclear expansion.

Growing Need for Clean Energy

The demand for clean and reliable energy is rising fast, especially in sectors like data centers and AI, which are using more electricity than ever. James Schaefer, from Guggenheim Securities, stressed this point, saying, "The need for clean energy to power data centers and AI is huge. Nuclear energy is a proven, safe solution, and we need to move from planning to building these plants."

Mohamed Al Hammadi, CEO of Emirates Nuclear Energy Corporation, added that nuclear energy is critical for both energy security and reaching net-zero goals. He said, "Since COP28, nuclear energy has gained serious momentum. The support from these 14 major banks shows that nuclear is not only key for decarbonization but also a smart financial investment."

A Global Vision for 2050

The Declaration to Triple Nuclear Energy by 2050, supported by 25 countries at COP28, reflects a bold, shared goal to massively increase nuclear energy. Countries like the U.S., Canada, France, Japan, South Korea, and the UK are all part of this push.

Nuclear energy is crucial in limiting global warming to 1.5°C. It provides a steady source of zero-carbon electricity, complementing renewable sources like wind and solar.

Benjamin M. Pickett, from Nucor Corporation, explained how important nuclear is for industries: "Nuclear energy, along with renewables, is key to reaching global carbon reduction goals. Manufacturers need clean, reliable energy to thrive."

Banks as Drivers of Change

Nuclear energy has faced obstacles, such as high costs and political opposition. However, the backing of major financial institutions marks a significant shift. By providing funding and investment, these banks are helping to revive the nuclear industry and make it a competitive player in the clean energy transition.

This announcement comes as Wall Street increasingly focuses on meeting sustainability goals.