Global Banks Commit to Tripling Nuclear Energy Capacity by 2050

Global financial institutions back nuclear power as a cornerstone of the clean energy transition to meet net-zero targets by 2050.

Editorial Team (ET)July 10, 2025

In a significant step toward a low-carbon future, a group of 14 global financial institutions has thrown its weight behind nuclear energy. The collective action, revealed during New York Climate Week, aligns with growing global consensus on the role of nuclear power in achieving net-zero emissions by 2050. These institutions, ranging from Bank of America to Goldman Sachs, expressed their commitment to supporting the tripling of nuclear energy capacity by 2050—a vital component of the transition to clean energy.

This move follows a pivotal moment at COP28, the United Nations Climate Change Conference held last December in Dubai. There, the 198 signatory countries to the UN Framework Convention on Climate Change pledged to deploy low-emission technologies, including nuclear power, to rapidly decarbonize hard-to-abate sectors. With industry and heavy manufacturing being among the most challenging sectors to transition, nuclear energy is emerging as a crucial solution to deliver large-scale, reliable, and low-carbon power.

Financial Institutions Step Forward

Fourteen global banks and financial institutions have publicly backed nuclear expansion as part of the solution to meet growing global energy demands while reducing emissions. Among the institutions are notable names such as BNP Paribas, Barclays, Citi, and Morgan Stanley. These banks are not only committing resources but also offering their expertise, services, and financial solutions to drive the nuclear sector forward.

Capital markets and financing are pivotal to nuclear energy development, according to the World Nuclear Association. The institutions argue that the nuclear sector is key to accelerating the generation of "clean electrons," helping the world meet its energy needs in a sustainable manner. They further highlighted the need for robust financial support to achieve global decarbonization goals.

COP28 and Global Climate Goals

At COP28, held in Dubai in December, 25 nations pledged to triple global nuclear power capacity by 2050. This bold commitment is seen as essential to achieving net-zero emissions, particularly in sectors like heavy industry, which are challenging to decarbonize through renewable energy alone.

The United Nations Climate Change Conference has become a critical platform for driving global energy transition discussions, with nuclear energy gaining prominence as a reliable, clean energy source. In addition to renewable energy sources like wind and solar, nuclear power is increasingly being seen as a vital tool in reducing greenhouse gas emissions, especially as global energy demand continues to grow.

Why Nuclear Energy is Critical for Decarbonization

Nuclear energy is one of the few scalable solutions that can provide consistent, low-carbon power. Unlike renewable sources, which can be intermittent, nuclear power plants produce electricity around the clock, making them an ideal complement to renewables in the clean energy mix. This reliability is essential for stabilizing grids as the world shifts away from fossil fuels.

By embracing nuclear power, countries can reduce their reliance on fossil fuels and create a sustainable energy landscape capable of meeting future demands. In sectors like industry, where emissions are harder to reduce, nuclear energy offers a feasible path toward deep decarbonization.

The Call to Triple Nuclear Capacity by 2050

At COP28, the call to triple nuclear capacity by 2050 was met with support from a wide range of countries. The commitment reflects the understanding that nuclear power must play a key role in achieving net-zero targets. Nations are increasingly recognizing that without significant nuclear expansion, it will be difficult to meet future energy demands while also reducing emissions.

Financial Institutions Leading the Charge

The financial sector’s role in supporting nuclear energy is critical. The backing of 14 global banks signals strong confidence in the future of nuclear power. These institutions are leading the charge in creating innovative financial instruments and solutions to ensure the success of nuclear projects worldwide.

Key Supporters in the Financial Industry

Among the notable supporters are Bank of America, BNP Paribas, and Morgan Stanley. These institutions have been vocal in their support for nuclear energy, emphasizing the need for long-term investment to develop new projects. Their backing includes both direct investment and the creation of financial frameworks that enable nuclear companies to access necessary funding.

Challenges Facing Nuclear Expansion

Despite the growing support, nuclear energy faces significant challenges. These include high initial costs, regulatory hurdles, and public skepticism. However, financial institutions and governments are working together to address these issues. The development of new financial instruments, such as government-backed loans and risk-sharing mechanisms, is expected to make nuclear projects more competitive with other low-carbon technologies.

The Swedish Model for Nuclear Expansion

Sweden is at the forefront of innovative nuclear financing. The Swedish government is exploring models that include government-backed loans, contracts-for-difference (CfDs), and risk-sharing mechanisms. These strategies aim to reduce financial risks and encourage investment in new nuclear power plants.

Nuclear Energy in the Broader Clean Energy Transition

Nuclear power is playing an increasingly important role in the clean energy transition. It is particularly valuable in meeting the growing demand for electricity in data centers and AI technologies. As global power demand continues to rise, nuclear energy is seen as a reliable and clean source of power that can support technological advancements without increasing carbon emissions.

Role of Government and Policy Makers

Governments and policymakers have a crucial role in facilitating nuclear expansion. As John Podesta, Senior Advisor for International Climate Policy to President Biden, noted, nuclear energy is key to ensuring a liveable planet. Government support for nuclear projects, along with the creation of favorable policy environments, will be essential for achieving nuclear capacity goals.

Industry Collaboration and Innovation

Collaboration between financial institutions, governments, and the nuclear industry will be critical to the success of nuclear projects. Innovations in nuclear fission technology are already proving commercially viable, and new partnerships will help drive further advancements in the sector.

Public Support and Awareness

Public perception of nuclear energy remains a challenge, but efforts are underway to change that. Public awareness campaigns are promoting nuclear as a safe and clean energy source, essential to reducing emissions and ensuring a sustainable future.

The Future of Nuclear Energy Financing

Sustainable finance is emerging as a key driver for nuclear projects. Financial markets are adapting to include nuclear energy in their portfolios, providing clarity to investors and creating new opportunities for funding.

Calls for Nuclear Energy in International Agreements

International agreements, including the Roadmaps to New Nuclear, are increasingly recognizing the importance of nuclear energy. Multilateral financial institutions are being urged to include nuclear in their investment portfolios, ensuring that it plays a central role in the global clean energy transition.

Conclusion

As global financial institutions rally behind nuclear energy, it is clear that the world is taking significant steps toward a sustainable future. The commitment to tripling nuclear capacity by 2050 reflects a growing recognition of the critical role nuclear power will play in decarbonizing the planet. With support from governments, financial markets, and the public, the nuclear industry is poised to lead the charge toward a clean, reliable energy future.

The Financing the Tripling of Nuclear Energy event (Image: Hechler Photographers)

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