[Column] Nuclear Power, a Hard-Won Chance for Revival through Taxonomy

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] The European Union (EU) has decided to include nuclear power in its green taxonomy, marking a significant shift in global energy trends toward carbon neutrality. The taxonomy, which selects sustainable economic activities to address the imminent climate crisis, is expected to become a crucial standard that makes financial and fiscal support difficult for companies engaged in businesses that do not meet its criteria.

Since the 2011 Fukushima nuclear accident in Japan, the domestic nuclear industry in South Korea, which faced an existential crisis amid calls for denuclearization, has found a ray of hope. The South Korean government plans to release a draft revision of the green taxonomy as early as the end of this month and finalize it in the second half of the year. If nuclear power is included as planned, nuclear companies are expected to ease their funding constraints.

However, inclusion in the taxonomy does not immediately make nuclear power "green." During the EU taxonomy discussions, opinions were sharply divided. Nevertheless, there was a consensus that a realistic intermediate step is necessary to advance toward carbon neutrality.

Instead, strict conditions were attached. Only nuclear plants that received construction permits before 2045 are eligible, and solutions for managing high-level radioactive waste, such as spent nuclear fuel, must be secured by 2050.

Following the Russia-Ukraine war and the surge in raw material prices, European countries have re-recognized the importance of energy security. While addressing the climate crisis is essential, securing energy sources that can be used immediately is also critical.

This holds significant implications for resource-poor South Korea. The government recently confirmed the resumption of construction for Shin Hanul Units 3 and 4 and set an energy policy direction to increase the share of nuclear power generation to over 30% by 2030.

However, including nuclear power in the taxonomy and resuming construction do not completely resolve all obstacles. Legal management procedures for aging nuclear plants and solutions for handling high-level radioactive waste, such as spent nuclear fuel, have yet to be established.

Starting in 2031, temporary storage facilities for spent nuclear fuel at the Kori and Hanbit nuclear plants are expected to reach capacity sequentially. Discussions on disposal facilities must be expedited. Nuclear power exports are not the whole story.

This content was produced with the assistance of AI translation services.