Major global banks to show support for nuclear power – report

Fourteen of the world’s biggest banks and financial institutions will pledge increased support for nuclear energy in a bid to unlock financing for the industry, according to a Financial Times report.

Institutions including Bank of America (NYSE:BAC), Barclays (NYSE:BCS), Citi (NYSE:C), Morgan Stanley (NYSE:MS), and Goldman Sachs (NYSE:GS) will say they support the COP28 goal to triple the world’s nuclear energy capacity by 2025 at an event with White House climate policy adviser John Podesta on Monday in New York.

Experts have opined that a public show of support has been long-awaited, given the critical role nuclear energy can play in the overall transition to low-carbon energy to mitigate the impact of climate change.

Historically, banks have been divided on the prospects of nuclear energy due to project financing complexities and risks, and questions over such investments complying with organizational environmental, social, and governance standards.

BNP Paribas (OTCQX:BNPQF) told FT there was “no scenario” in which the world could achieve carbon neutrality by 2050 without nuclear power, citing the UN’s Intergovernmental Panel on Climate Change. Barclays (BCS) believes nuclear power could be a solution to wind and solar energy’s intermittency.

As tech firms seek more electricity to power data centers and fuel their artificial intelligence ambitions, nuclear energy is seen as a possible way forward.

Recently, Microsoft (MSFT) inked a 20-year power supply deal with Constellation Energy (CEG) that would restore a unit of the Three Mile Island nuclear plant and keep it online for decades.