Examining the role of banks in financing nuclear power programs for a green economy and clean energy transition

Year : 2025 | Volume : 15 | Issue : 01 | Page : 28 39
    By

    Rupsha Bhattacharyya,

Abstract

Nuclear power programs have the potential to contribute to deep, multi-sector and economy-wide decarbonization as sources of reliable, low emissions intensity thermal and electrical energy. However, nuclear power projects are complex, capital-intensive ventures with significant financial risks associated with them. Therefore, financing has been a critical issue for these projects. To accelerate their deployment to meet clean energy transition targets of nations and institutions, financial institutions like banks can play a major role as a source of much needed long-term capital at potentially lower costs than from other sources. This is a virtuous cycle that benefits the banks as well because it represents a low carbon and sustainable investment opportunity for them. This can be a part of the suite of measures they take to divest from emissions-intense assets like fossil fuel plants, enable the clean and sustainable energy transition in power and industrial sectors, and avoid both physical and transition climate finance risks. This perspective paper highlights the need for nuclear power for achieving global net zero emissions in a reliable and economically feasible manner, discusses typical cost elements of a nuclear power project, proposes some possible mechanisms for banks to support nuclear power program financing, and provides instances of how banks have already been involved in nuclear energy projects. The work is an attempt at creating awareness about the need for technology-agnostic evaluation and financing decision making by large financial institutions such as development, central and national banks towards all applicable clean energy technologies.

Keywords: Banks; clean energy; energy transition; financing; nuclear power; responsible investment.

[This article belongs to Journal of Nuclear Engineering & Technology ]

How to cite this article:
Rupsha Bhattacharyya. Examining the role of banks in financing nuclear power programs for a green economy and clean energy transition. Journal of Nuclear Engineering & Technology. 2025; 15(01):28-39.
How to cite this URL:
Rupsha Bhattacharyya. Examining the role of banks in financing nuclear power programs for a green economy and clean energy transition. Journal of Nuclear Engineering & Technology. 2025; 15(01):28-39. Available from: https://journals.stmjournals.com/jonet/article=2025/view=206523


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Regular Issue Subscription Review Article
Volume 15
Issue 01
Received 28/02/2025
Accepted 06/03/2025
Published 07/04/2025
Publication Time 38 Days
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