NRI Annual Review 2024 - Flipbook - Page 26
potential trade barriers. This
could encourage greater foreign
investment in UK nuclear, while
providing UK suppliers and
companies with access to overseas
markets. It can be said that
the absence of treaty relations
has hindered collaboration in
the past, with issues emerging
in new potential projects and
decommissioning.
A. BM
For suppliers in countries that
are not party to the Paris or
Vienna conventions, like the
US and Canada, having treaty
relations through the CSC
removes a huge impediment to
their competing in the European
nuclear sectors. At the same
time, the EXIM Bank in the US
has a 昀椀rm requirement that only
operators from CSC member
states can apply for nuclear
loans, so it works both ways.
We need a robust nuclear
industry and this requires
We need a
robust nuclear
industry and this
requires liability
to be addressed
in every project.
And the best way
of dealing with
liability is through
treaty relations
with as many
countries
as possible.
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liability to be addressed in
every project. And the best
way of dealing with liability is
through treaty relations with
as many countries as possible.
Treaty relations through the
CSC is going to make it much
easier for us to work together
on energy projects in the UK,
the US and everywhere. And
this has positive implications
for the commercial viability
of the industry, and the role
nuclear can play in helping to
tackle climate change.
The US and Japan didn’t have
treaty relations at the time of
the Fukushima disaster. This
led to ten years of litigation
in US courts, costing millions
of dollars and causing a lot
of angst among potential
defendants. That situation
wouldn’t happen now, with
the treaty relations between
the two countries established
through the CSC.
strengthens the international
framework that provides
legal certainty concerning the
treatment of nuclear liability.
Operators, suppliers, investors,
lenders and insurers need
this certainty to participate in
nuclear projects.
The UK’s accession to the CSC
will send a strong signal to
other countries in Europe and
around the world concerning
the bene昀椀ts of a global regime
based on the CSC. In addition,
the UK’s accession will greatly
facilitate US/UK cooperation
in nuclear projects in the UK,
the US and elsewhere. It will
thereby promote our shared
goal of nuclear energy achieving
its full potential in addressing
climate change, energy security
and economic development
around the globe.
Q. How is the UK’s
accession to the CSC
viewed in the US?
Q. The UK would become
the 昀椀rst country in the
world to accede to both the
Paris Convention and the
CSC. What’s the signi昀椀cance
of this?
A. BM
A. BA
The US views the UK’s
accession as being very
important. We’re strong
supporters of a global regime
based on the CSC, which
we believe is the best way
to address the two primary
objectives of all nuclear
liability regimes. First, the
CSC expands and enhances
the compensation available
for damage to persons,
property and the environment.
It therefore furthers the
principle of ‘environmental
justice’ which, among other
things, calls for those who
engage in an activity to plan
for any potential adverse
consequences. Second, the CSC
The UK remains committed to
the Paris Convention, and we
believe accession to the CSC will
only enhance our NTPL regime.
We think these treaties can really
work together. The UK has been
quite open and transparent about
the way we’re doing things and
the way we’re merging the two.
We’ve been careful to ensure
our domestic legislation re昀氀ects
our obligations under both
conventions. And we’ve futureproofed through secondary
legislation, so we can make
regulations to address any issues
that arise.
