To demonstrate America’s leadership on climate and energy issues globally, U.S. Rep. French Hill (R-AR) recently urged the U.S. Treasury Secretary to support the financing of nuclear energy projects by international financial institutions, specifically the European Bank for Reconstruction and Development (EBRD).
Such nuclear energy investments also would counter Russian and Chinese influence as bilateral creditors for nuclear projects, and allow developing countries to sustainably build their energy capacity and resources, according to an Oct. 17 letter Rep. Hill and U.S. House Financial Services Committee Ranking Member Patrick McHenry (R-NC) sent to Treasury Secretary Janet Yellen.
“Encouraging greater multilateral financing can also help attract Western investment to projects in developing countries, strengthen geopolitical ties, and present commercial opportunities to deploy American technology on the design and completion of new nuclear reactors,” the lawmakers wrote. “The U.S. is in a position to advocate for a change to the bank’s current nuclear investment ban as it is the largest shareholder of the EBRD.”
Citing Russia’s weaponization of its oil and gas sectors amid the war in Ukraine, the members wrote that the world must look to a diverse mix of energy sources to manage the ongoing energy transition. Relying exclusively on renewables is not a sustainable energy policy, especially for developing countries, they wrote.
“Nuclear energy will be essential for countries to meet their energy needs,” according to their letter.
However, current policy prevents the EBRD from providing funding for the construction of new nuclear power plants. “This is a mistake,” wrote Rep. Hill and Rep. McHenry. “The Department of the Treasury’s agreement in July to contribute $500 million to the EBRD’s Crisis Response Special Fund for Ukraine was a missed opportunity to call for a change to this misguided policy.”
The representatives also pointed out that the EBRD should follow the example of the U.S. Development Finance Corporation, which relaxed its own nuclear investment ban in 2020 with bipartisan support from Congress. And they noted that in the absence of multilateral financing for nuclear projects, “China and Russia are filling the void, particularly in developing countries.”
International financial institutions like the EBRD could promote nuclear energy by investing in nuclear projects in developing countries like they are already doing with solar and wind projects, suggested Rep. Hill and his colleague. “We urge you to support the financing of nuclear energy projects at the EBRD and other multilateral lenders where the U.S. is a top shareholder.”