COP28: Opportunities in Countries Pledging to Triple Global Nuclear Energy.

At COP28 last week, the President of the French Republic and US Special Envoy for Climate revealed that the Declaration to Triple Nuclear Energy by 2050 was joined by more than 20 nations. 

The countries endorsing this move include the United States, Bulgaria, Canada, Czech Republic, Finland, France, Ghana, Hungary, Japan, Republic of Korea, Moldova, Mongolia, Morocco, Netherlands, Poland, Romania, Slovakia, Slovenia, Sweden, Ukraine, United Arab Emirates, and the United Kingdom.

The declaration acknowledges the crucial role of nuclear energy in achieving global net-zero emissions and maintaining a 1.5°C temperature rise limit. Participants commit to tripling nuclear energy capacity by 2050, recognizing diverse domestic circumstances. They pledge to ensure responsible nuclear plant operation, mobilize investments, and promote the development of advanced reactors. The commitment includes encouraging financial institutions to support nuclear energy and reviewing progress annually on the COP sidelines.

Companies that could potentially win from this

The declaration's emphasis on advancing a global goal of tripling nuclear energy capacity by 2050 holds promising implications for small nuclear reactors (SMRs) and companies involved in their development. Notably, on EasyEquities, Rolls Royce is a noteworthy player in the field of small nuclear reactors. The commitment to supporting the development and construction of nuclear reactors, particularly small modular and advanced reactors, aligns with the characteristics of SMRs.

Rolls Royce, known for its expertise in engineering and technology, is actively engaged in the development of small nuclear reactors. With the increasing global interest in SMRs, companies like Rolls Royce may find expanded opportunities for collaboration, investment, and deployment of their small reactor technology.

For uranium exploration companies, the declaration's focus on expanding nuclear energy capacity suggests potential growth in demand for uranium. This could positively impact companies involved in uranium exploration projects, provided they adhere to the safety and sustainability standards outlined in the commitment.

Namibia and Canada, being some of the largest uranium exporters, stand to benefit from the increased emphasis on expanding nuclear energy capacity. Global Uranium and Enrichment Limited has six exploration projects in Canada's Athabasca Basin, known for hosting the world's largest and highest-grade uranium mines. Paladin Energy's subsidiary, Aurora Energy Ltd, owns 100% of mineral exploration licenses in Labrador, Canada. Bannerman Energy focuses on the Etango Uranium project in Namibia, while Deep Yellow aims to extend the mine life of its Tumas project in the country. Elevate Uranium explores uranium deposits in Namibia, holding a 75% interest in the Marenica uranium project.

Conclusion 

Investors should monitor COP28's impact on the pledge to triple nuclear energy by 2050. With 20 nations committed, including major players like the US and France, nuclear energy's global importance is evident. Companies like Rolls Royce in small nuclear reactors (SMRs) may benefit, aligning with the push for advanced reactors. The emphasis on nuclear energy expansion also hints at potential uranium demand growth, benefiting exploration firms in regions like Canada and Namibia.

Stay alert for COP progress reviews, as these developments could shape market dynamics and offer investment opportunities in the evolving nuclear energy landscape.

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