‘Let the market sort’ out nuclear, bankers urge Bowen

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Deutsche Bank’s Phil O’Donaghoe said that if private capital wants to fund small nuclear reactors then the government should not stand in its way.

The chief economist at one of the world’s biggest banks has challenged Climate Change and Energy Minister, calling for the government to remove barriers to the technology and let the market determine whether deploying it here makes sense.

“We’ve got a full agenda and I don’t have time for a distraction that’s not going to work,” he told the Australian Business Economists briefing.Mr Bowen said the cost of nuclear was just one problem, with the technology providing inflexible generation that does not complement weather-dependent wind and solar, and the issue of waste, given SMRs can generate up to 30 times more waste proportionally as large reactors.

Former Reserve Bank deputy governor Guy Debelle slammed suggestions from the opposition that the policy was a form of industry protectionism. “The overriding objective here is achieving the decarbonisation, which you don’t want undermined by imports,” he said.“I don’t see that as any different from rules around labour standards or the environment, or quarantine for that matter.

“The CBAM or whatever we settle on after the review for avoiding carbon leakage is an important opportunity to deal with some of the challenges that we were confronting in agreeing to that reduced baseline,” he said.

 

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