This article was first published as part of a social media campaign on mallowstreet – an online community for pension funds. The author was undertaking a placement year in the Sizewell C Financing and Economic Regulation team at the time.
A time of crisis, or a moment of clarity? The spread of COVID-19 has had widespread impacts on communities and societies worldwide, particularly affecting the poor and vulnerable in our society. This pandemic has reminded us of our interconnectedness, and the importance of looking after one another.
The topic of social justice is inherently linked to the other large crisis of our time: the climate crisis. In fact, we are already seeing a link between the climate crisis and the effects of the C-19 pandemic with people living in areas with high levels of air pollution appearing to be worse affected than others. So as we begin to tackle the environmental crisis, remembering our connection to others, we need to ensure that our approach properly accounts for the most vulnerable and that it ensures a Just Transition to a low carbon future.
One of the most pressing issues that faces us in the race to reach net zero emissions is the decarbonisation of the energy sector. We need to ensure that we move away from fossil fuel-dependant forms of electricity generation – like gas and coal – and move towards low carbon energy sources. Alongside renewables, nuclear power can act as a key enabler of our low carbon transition. For over 60 years, the UK has had nuclear power contributing to its energy mixing – avoiding roughly 660 MtCO2e in that time[1], equivalent to 300 million cars coming off the road for a whole year. In addition to the large levels of avoided emissions, and as a direct result of the success of the nuclear industry, there have been thousands of high quality and well payed jobs created and maintained for over half a century.
Unfortunately, by 2030, all but one nuclear reactor – Sizewell B – will come offline. This will mean that thousands of highly skilled workers could potentially be left without work – a problem further exacerbated as we move away from burning unabated fossil fuels.
Conversely, a flourishing nuclear industry has the potential to create thousands of highly skilled and well paid jobs. Already, Hinkley Point C (HPC) has resulted in the employment of thousands of people, including over 500 apprentices.
Furthermore, the benefits of learning through replication and a developed nuclear supply chain could result in massive cost reductions for the next big nuclear project – Sizewell C. This would result in better value for money for consumers, and would also ensure decreased levels of risk for investors.
The Regulated Asset Base (RAB) funding model, on which the Government has consulted, has been proposed for Sizewell C. When applied to the Thames Tideway super sewer in London it dramatically cut the cost to consumers for a project which will transform the capital’s environment. The reduced risk generated through the replication process makes Sizewell C the perfect candidate for the use of the RAB funding model – as the learning from HPC is transferred to Sizewell C the efficiency of construction will increase and the risk and cost of financing can decrease under the RAB model. It is clear that investors that are increasingly focused on investing in technologies that create social and environmental benefits, can find investment opportunities in nuclear power. A decision to fund the Sizewell C project will help to ensure the creation of a diverse array of lifelong, well-paid, high skilled jobs for many people.
On top of this, the Sizewell C project would also bring billions of pounds to the local economy in Suffolk – HPC has already invested over £1bn in the regional economy, and has laid the tracks for increasing accessibility to, and diversity of, the industry.
We have the skills and knowledge in this country to successfully run a fully functional nuclear programme – as we have been doing since the opening of Calder Hall in 1957 – and we can do it for another 60 years and more, continuing the work that is already underway at Hinkley Point C.
Now, more than ever, we need low carbon nuclear – with its ability to provide a swathe of local and national benefits – to help us get through this climate crisis and achieve net zero by 2050. It is clear that nuclear can be a power for good, and will be a crucial part of a just and affordable transition to our low carbon future.
So, to answer the initial question: yes, we are in a time of crisis – a dual crisis of human and planetary health. But we have also been given the opportunity for clarity. We can see the importance of creating and maintaining employment opportunities. We can see the value of putting preventative measures in early. And we can see the power of acting in a just and equitable way. Now all we need to do is harness our experience, and act.
[1] When compared to direct emissions from combined cycle gas turbines
BioSphere 