Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government whether the exclusion of nuclear power from the Green Financing Framework means that they no longer see nuclear power as a crucial part of delivering the net zero carbon emissions policy by 2050.

The Government has been clear that nuclear has a key role in delivering net zero, confirming in the Energy White Paper in December 2020 that it is committed to bringing forward “at least one large-scale nuclear project” this parliament and entering negotiations with EDF on Sizewell C. The White Paper also included plans for £385m in an Advanced Nuclear Fund with up to £215m investment to develop a domestic Small Modular Reactor (SMR) design by the early 2030s.

The role of nuclear in delivering net zero was reiterated in the Green Financing Framework policy document to which the noble Lord refers, which said that “nuclear power is, and will continue to be, a key part of the UK’s low-carbon energy mix”. The policy document is available at:

http://www.gov.uk/government/publications/uk-government-green-financing

Furthermore, eligibility under the Framework is not a determinant of what the government considers to be ‘green’ – that is the role of the UK Taxonomy, which the Government has committed to developing by 2023. In June the Government announced the formation of a Green Technical Advisory Group to advise on the Taxonomy’s development. As part of this, an Energy Working Group will consider how to address nuclear power in the Taxonomy.

HM Treasury intends, where possible, to adhere to best practices in the market and will review the Green Financing Framework’s alignment with updated versions of the ICMA Green Bond Principles as and when they are released, as well as the UK Taxonomy as it develops. As such, this Framework may be updated and amended.