French President Nicolas Sarkozy has announced that he is going to push international financial institutions to “eliminate the ostracism of nuclear energy in international financing”.
In a powerful speech at the opening of the plenary session of the International Conference on Access to Civil Nuclear Energy in Paris on Monday, the President pointed out that the economics of civilian nuclear power required an initial investment of billions of euros followed by very low operating costs, which requires long-term funding at reasonable rates. For many countries, this creates a barrier that prevents them adopting nuclear energy.
“Civil nuclear energy is an economic choice …. Frankly, I do not understand why international financial institutions and development banks do not finance civil nuclear energy projects. The current situation means that countries are condemned to rely on more costly energy that causes greater pollution,” he said.“I propose to change all this. The World Bank, the European Bank for Reconstruction and Development and the regional development banks must make a wholehearted commitment to finance such projects.”
Two things. One, if Sarkoy’s plan were embraced, France would benefit economically as it’s a leader in nuclear power. And that’s OK. Two, the U.S. is trying to do just this with the Bush, and now Obama, loan guarantees for nuclear plants.
There’s still the chance that a government shuts down a nuclear project once it’s been completed, which wouldn’t eliminate the risk of these World Bank type loans. It would be taxpayers who would ultimately would eat the loss rather than a private bank.