As countries around the world embrace an increasingly ambitious climate agenda, the importance of trade policy tools that prevent leakage to economies whose climate regulations are less stringent is becoming evident. Mechanisms that charge a fee at the border for more emissions-intensive imports from other countries and thus increase their price in the domestic market have gained traction. These tools, if used by the G7, would likely have enough heft to set a de facto international price on carbon.
Trade policy like this would increase the attractiveness of low-carbon technologies, like nuclear energy, in countries looking to maintain their export competitiveness in a carbon-constrained market. This presents an opportunity for G7 countries to drive investment into these technologies in developing, export-oriented countries as they look for ways to maintain market share. Such policy would also incentivize developed countries that are planning to shut down nuclear reactors to consider the detrimental impact of replacing the ensuing generation shortfall with unabated fossil fuels, and it would push policymakers to assess the risks of new nuclear demand to proliferation standards, particularly if China and Russia continue to build the vast majority of new international nuclear projects.
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EnergySource Feb 11, 2022
Building on US advanced reactor demonstration momentum: Federal power purchase agreements
By Matt Bowen
The Tennessee Valley Authority’s recent announcement regarding the Clinch River site adds momentum to the US effort to demonstrate advanced reactors. There is, however, another policy lever at the federal level that could help to support some of these projects and still has not been utilized: federal power purchase agreements.
Global Energy Agenda Jan 19, 2022
The 2022 Global Energy Agenda
By Randolph Bell, Jennifer T. Gordon, Ameya Hadap, and Paul Kielstra (Editors)
The second edition of the Global Energy Agenda provides context for the year that has passed. It features a survey of thought leaders in the energy sector, as well as a series of essays by the leading figures in energy, to set the energy agenda for 2022.
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