The WMO State of the Climate 2024 Update painted a sobering picture of humanity’s battle against climate change. With 2015-2025 set to become the hottest decade on record and greenhouse gas concentrations reaching unprecedented levels, it’s clear the status quo is failing. Despite significant investments in renewable energy, global emissions continue to rise, and energy security challenges persist. While renewable energy is essential in addressing the climate crisis, its limitations have become evident: the realities of intermittency, escalating demand for electricity, and the need for deep industrial decarbonisation highlight that renewables alone cannot carry the load. To address these challenges effectively, we must embrace a pragmatic approach, drawing on all available technologies. To meet global decarbonisation goals, the world must abandon ideological biases and embrace diverse solutions – including nuclear energy.
The limits of intermittent power
For decades, the energy debate has been polarised by preferences for specific technologies rather than pragmatic solutions. The allure of renewables like wind and solar has captivated policymakers and investors, resulting in over $600bn in global investments in 2023 alone. Yet despite these efforts, according to the International Energy Agency (IEA), renewables account for only 14.4% of global energy consumption, while fossil fuels – coal, oil, and gas – still dominate at over 70%. Emissions are rising, not falling, and the planet is heating faster than we can cool it.
Germany, often held up as a green energy pioneer, provides a cautionary tale. Despite significant renewable capacity, the country remains Europe’s largest coal consumer, particularly during periods of low wind. In 2022, Germany saw a 10% increase in coal consumption after shutting down its remaining nuclear plants, underlining how renewable intermittency can undermine decarbonisation.
This situation is not unique to Germany. Australia also exemplifies the challenges of relying primarily on renewables. With over 30% of its electricity now coming from wind and solar, the country is a leader in renewable adoption. Yet, the intermittent nature of these technologies has left Australia dependent on gas and coal to firm its grid. In 2023, during a prolonged wind drought in South Australia, the state relied heavily on gas-fired power plants.
The Australian Energy Market Operator (AEMO) has warned that without firm, dispatchable energy sources, the grid will struggle to maintain reliability as coal plants retire. Battery storage, while promising, remains costly and limited in scale. The IEA estimates that the global capacity for grid-scale batteries would need to increase by 44 times to store just one day’s worth of global electricity demand. According to BloombergNEF, all the lithium-ion batteries deployed globally could store only 15 minutes of the world’s electricity demand.
Broadening the toolkit
The harsh reality is that as global electricity demand is set to soar – driven by the electrification of transport, heating, and industrial processes, as well as the explosive growth of data centres and AI technologies – renewables are not enough. The IEA estimates a 70% increase in electricity demand by 2050, requiring a massive expansion of generation capacity. Unlike renewables, nuclear energy provides consistent, low-carbon baseload power. Its ability to rapidly reduce emissions is well-documented in nations like France, Canada and more recently the United Arab Emirates (UAE).
For decades, nuclear energy has been relegated to the sidelines of the global debate on climate change and clean energy. Now, as countries face the urgency of reducing greenhouse gas emissions and securing reliable energy sources, this energy underdog is getting the attention it has long deserved. As many countries come to grips with the reality that a full transition to renewable energy may take decades and be costly, nuclear energy is being recognised as an essential part of the global energy mix.
This year at the World Economic Forum (WEF) in Davos, nuclear energy took more of the centre stage than ever. One of the highlights was the session “The Road to Tripling Nuclear Capacity,” focusing on how nuclear energy can play a pivotal role in addressing the world’s growing energy needs. Traditionally dominated by discussions on renewables, the WEF has recently become a platform for governments and businesses to explore nuclear potential as a cornerstone of decarbonisation strategies.
This prominence in Davos is not an isolated incident but reflects a broader global shift. At COP26, COP27, and COP28, nuclear energy emerged as a central component of climate policy. The ambitious call to triple global nuclear capacity by 2050, backed by multiple nations, signals a growing consensus that nuclear is essential to achieving net-zero emissions.
Beyond WEF, international agencies and think tanks are playing a crucial role in advocating for nuclear energy. Another influential voice is the International Energy Agency (IEA), which recently released a report titled The Path to a New Era for Nuclear Energy. The IEA’s message was clear: nuclear energy is an indispensable source of secure, clean electricity in many countries today and is poised to continue playing a key role in the coming decades.
With financial incentives and subsidies now available, companies are increasingly investing in the development of new nuclear technologies. Programmes like the Advanced Reactor Demonstration Program (ARDP) are helping bring next-generation nuclear reactors to market, which will play a pivotal role in the future of the energy sector.
Government efforts to revitalise the nuclear industry are also taking place in Europe. Belgium, for instance, has committed to expanding its nuclear capacity as part of its energy transition goals. This is a major shift for a country that has, in the past, been cautious about nuclear power but is now prioritising its role in reducing emissions and securing a reliable energy supply. Poland and Sweden are also actively pursuing nuclear energy to diversify their energy mix. Countries that have already embraced nuclear technology – such as South Korea, Canada, the UK, and France – are now focused on expanding their nuclear fleets. Meanwhile, nations that have yet to adopt nuclear power are rethinking their energy strategies in light of geopolitical instability and the need for reliable, low-carbon power.
This global push for nuclear energy is also reflected in a surge in investment. Uranium stocks have seen significant increases, and companies involved in uranium mining and reactor development are attracting substantial interest from institutional investors, hedge funds, and venture capitalists. Exelon, one of the largest nuclear operators in the US, has been significantly investing in nuclear energy expansion. Constellation Energy, the owner of Exelon’s former nuclear assets, announced plans to invest $1.6bn to bring the Three Mile Island Unit 1 facility back online by 2028, further emphasizing Exelon’s commitment to advancing its nuclear capabilities. TerraPower, co-founded by Bill Gates and backed by Warren Buffett, is investing $4bn to develop next-generation nuclear reactors.
Overcoming barriers to nuclear adoption
Critics often point to nuclear’s high upfront costs and long construction timelines. However, new technologies like small modular reactors (SMRs) are addressing these concerns. Nuclear energy’s appeal lies in its ability to provide dense, reliable, and clean power. Small Modular Reactors (SMRs) could be deployed within the footprint of retiring coal plants or co-located with data centres, refineries, and steel, chemical, and aluminium plants, for example. These advanced reactors could deliver clean heat, power, steam, or hydrogen, repowering existing infrastructure without emissions while potentially transforming industrial users into power suppliers.
Technological improvements alone won’t suffice though. Governments must have the courage to support nuclear energy through streamlined regulations, financial incentives like tax breaks or green bonds, and clear communication about its safety and environmental benefits. Australia illustrates the risks of avoiding this support by continuing to rely on coal and gas despite ambitious renewable targets.
Building public trust and fostering international cooperation on safety and technology standards will also be vital. With decisive government action, nuclear energy can be a cornerstone of a reliable, low-carbon energy future.
The urgency of the climate crisis leaves no room for ideological preferences. Betting exclusively on wind and solar risks both energy insecurity and failure to meet decarbonisation targets. Instead, we must pull every lever – renewables, nuclear, CCUS, geothermal, and more – to build a robust, resilient energy system. The WMO State of the Climate 2024 Update is a stark reminder that time is running out. To limit warming, protect communities, and ensure sustainable development, we need to abandon narrow thinking and embrace a truly inclusive approach.
It seems nuclear energy has finally earned the recognition it deserves. Now, the real test lies in the industry’s ability to deliver. Overcoming technical, regulatory, and financial challenges will be critical in proving that nuclear can meet the world’s urgent demand for clean, dependable energy. With growing support from governments, investors, and innovators, the next chapter of the nuclear journey will be decisive – if the industry rises to the occasion, it will cement its place as a cornerstone of the global energy transition.
There are solutions to climate change, but they require courage – the courage to invest in technologies like nuclear power and carbon capture, the courage to modernise policies and lift outdated bans, and the courage to collaborate across sectors and borders.
