NRI Annual Review 2023 - Flipbook - Page 19
These initiatives are already generating some
of the ideas and actions that will drive our
industry to a low-carbon economy, but there
is much more to do.
We are especially aware that the global
energy transition is key to achieving this
seismic shift in the years ahead.
Lloyd’s has always insisted that we will
support our customers through this
transition, but we must not delay. The world
needs an orderly, but urgent, transition in
order to mitigate the short-term risks while
meeting the scale of the long-term risks.
As the second largest source of low-carbon
energy, nuclear now provides around 10%
of global electricity supply, generated from
440 power reactors across 31 countries.
With a reliable generation process – and
one less dependent on external factors,
such as wind and sunlight – nuclear offers
opportunities to reduce the reliance on
carbon-intensive energy sources in many
developed and developing countries.
The shift in our
planet’s climate
must be recognised
as the defining
challenge of our time.
Since the origins of nuclear power
generation in the 1950s, the global insurance
industry has been an important partner for
the nuclear sector, providing vital insurance
protection for the unique needs of nuclear
energy projects through risk pooling,
alongside public-private partnerships. The
Lloyd’s market has been at the forefront of
these products, with a number of market
participants providing the specialist, bespoke
coverage crucial to the sector’s development.
Importantly, the emissions created in the
construction of nuclear reactors are typically
offset during the period between 18 months
and five years of operation. Over its 60- to
80-year lifespan, a nuclear power plant
therefore generates a significant negative
carbon footprint. With appropriate financing,
nuclear power in the 21st century can
compete with other renewables on cost,
carbon emissions and reliability.
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