COP26: No Transition without Nuclear Power

To achieve its objectives, COP26 will have to include nuclear power, with small modular reactor technology emerging as the obvious solution.

Share:

cop26

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

COP26 will need to integrate nuclear power to achieve its objectives, with small modular reactor (SMR) technology emerging as the obvious solution. This is the conclusion of a recent report by Wood Mackenzie on the current state and future of nuclear power.

COP26 can’t do without nuclear power

In the run-up to COP26, Wood Mackenzie has published a report on the role of nuclear power in the energy transition. According to the study, the nuclear issue is a divisive one internationally, with some countries wishing to do away with this energy source, and others investing heavily in it. But today’s challenge is to meet growing energy demand while reducing carbon emissions.

A complex challenge that renewable energies are unlikely to meet. While wind and solar power are destined for a bright future, these energy sources will not be able to provide a secure supply. Other, more flexible sources are essential. COP26 must find solutions to the electrification of more and more economic sectors.

Decline in nuclear projects since the 1980s

Global nuclear capacity is stagnating, with 366 GW currently in operation. Between 2000 and 2020, the average rate of construction of new nuclear structures has fallen compared with the 1980-2000 period. A trend driven by Europe for a number of reasons.

Firstly, the disaster at the Fukushima nuclear power plant has put off potential investors and tightened safety measures linked to the industry. The result has been construction delays and cost overruns – particularly in Europe. But nuclear power and its aging fleets are also faced with a growing number of technical problems. And competition from cheaper renewable energies is making itself felt.

China to hold 45% of nuclear capacity by 2050

In contrast to the Europeans, some countries, such as China, Russia and India, are banking on nuclear power for their energy transition. Even Canada is investing in this energy, believing the technology to be a cost-effective alternative in view of its geography.

Turkey, Bangladesh and the United Arab Emirates are also pursuing their nuclear programs. Russia’s state-owned nuclear company, ROSATOM, dominates the nuclear reactor market at home and abroad. The company will contribute to the increase in global nuclear capacity estimated by Wood Mackenzie at 88% by 2050.

At present, more than 125 GW of global nuclear capacity is being planned, of which China is the main contributor. With its determination to eliminate coal, Beijing is investing massively and should even hold 45% of the world’s capacity by 2050. The country is even experiencing rapid cost reductions for SMRs, accentuating the potential of nuclear power.

power plant
Rosatom’s Akademik Lomonosov floating nuclear power plant carrying an SMR.

SMR, less costly and faster

SMRs represent a promising technology for the future of energy, thanks to their compact design. They can be manufactured and assembled on site, reducing production times and costs.

What’s more, SMRs are more flexible than large-scale reactors, with capacities ranging from 150 to 450 MW. They could help reduce the disturbances observed in certain aging structures. With this technology, the production of hydrogen – an essential element in the energy transition – from nuclear sources would compete with green hydrogen.

For Wood Mackenzie, SMRs are “still in their infancy, but their potential is infinite”. The firm claims that SMR costs could fall below $80/MWh by 2030. Provided there is government support, technological innovation and investment. For the time being, a number of obstacles to the deployment of SMRs remain.

Some obstacles to the development of SMR

Like all technologies, SMRs come up against a number of difficulties. Despite a relatively low production cost, SMRs require high initial investment costs, which are reflected in the price of electricity. Also, since nuclear power is subject to stringent regulations, approvals for new designs can be time-consuming and costly.

Note the political uncertainty surrounding nuclear power, with political camps widely divided on the issue. The problem of nuclear waste also remains to be resolved, with few easy or inexpensive solutions available at present.

Finally, SMRs, of which only a handful are in operation, are competing with other technologies. These include hydrogen, geothermal and carbon capture and storage power plants. While nuclear power – with SMRs at the forefront – will play its part in the energy transition, it is only part of the solution.

Ottawa and London increased bilateral exchanges to structure strategic cooperation on nuclear energy and critical minerals supply chains, as part of Canada’s G7 presidency.
Donald Trump says he secured Narendra Modi’s commitment to end Russian oil imports, adding political pressure to India-Russia trade relations.
Under intense diplomatic pressure from Washington, member states of the International Maritime Organization agreed to postpone by one year the adoption of a carbon pricing mechanism for global maritime transport.
Washington confirms it has mandated the CIA to carry out secret actions against Nicolas Maduro’s government, escalating tensions between the United States and Venezuela amid geostrategic and energy stakes.
Two European Parliament committees propose to advance the full halt of Russian hydrocarbon imports to 2026 and 2027, including oil, gas, and LNG, strengthening the European Union’s geopolitical position.
The COP30 conference hosted in the Amazon by Brazil faces low participation from global leaders, amid geopolitical tensions and major logistical challenges.
The United States has granted Trinidad and Tobago a special licence to resume negotiations with Venezuela on the Dragon gas field, partially lifting restrictions imposed on the Venezuelan energy sector.
Ambassadors of European Union member states have approved the transmission of a legislative proposal to phase out Russian fossil fuel imports by January 2028 to the Council of Ministers.
The State Duma has approved Russia’s formal withdrawal from a treaty signed with the United States on the elimination of military-grade plutonium, ending over two decades of strategic nuclear cooperation.
Polish Prime Minister Donald Tusk said it was not in Poland’s interest to extradite to Germany a Ukrainian citizen suspected of taking part in the explosions that damaged the Nord Stream gas pipelines in 2022.
Al-Harfi and SCLCO signed agreements with Syrian authorities to develop solar and wind capacity, amid an ongoing energy rapprochement between Riyadh and Damascus.
Faced with risks to Middle Eastern supply chains, Thai and Japanese refiners are turning to US crude, backed by tariff incentives and strategies aligned with ongoing bilateral trade discussions.
France intercepted a tanker linked to Russian exports, prompting Emmanuel Macron to call for a coordinated European response to hinder vessels bypassing oil sanctions.
The activation of the snapback mechanism reinstates all UN sanctions on Iran, directly affecting the defence, financial and maritime trade sectors.
Commissioner Dan Jørgensen visits Greenland to expand energy ties with the European Union, amid plans to double EU funding for the 2028–2034 period.
European and Iranian foreign ministers meet in New York to try to prevent the reinstatement of UN sanctions linked to Tehran’s nuclear programme.
Canadian Prime Minister Mark Carney announces a bilateral agreement with Mexico including targeted investments in energy corridors, logistics infrastructure and cross-border security.
The US president has called for an immediate end to Russian oil imports by NATO countries, denouncing a strategic contradiction as sanctions against Moscow are being considered.
Tehran withdrew a resolution denouncing attacks on its nuclear facilities, citing US pressure on IAEA members who feared suspension of Washington’s voluntary contributions.
Poland’s energy minister calls on European Union member states to collectively commit to halting Russian oil purchases within two years, citing increasing geopolitical risks.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.