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G-8 Gives Some Support to Nuclear Energy

Posted on: Sunday, 16 July 2006, 15:00 CDT

By ALEX NICHOLSON

ST. PETERSBURG, Russia - With high demand and worries about supply driving oil near $80 a barrel, the Group of Eight offered cautious support Sunday for nuclear energy as an alternative.

While the leaders of the world's most industrialized nations endorsed the use of nuclear power, they hinted at a disagreement with Germany, which has opposed renewed interest in it.

In an otherwise upbeat joint statement - which delegates privately suggested was out of synch with reality - the leaders acknowledged differences over the question of nuclear power.

"We recognize that G-8 members pursue different ways to achieve energy security and climate protection goals. ... Those of us who have or are considering plans for the use and/or development of safe and secure nuclear energy believe that its development will contribute to global energy security," the statement said.

Defending the statement, Russian Energy and Industry Minster Viktor Khristenko said that the inclusion of a section on nuclear power was "a significant event" giving countries the opportunity to work actively toward developing nuclear energy in the future, "which we plan to do," he said.

He conceded that there were differences, however. "Yes, its true that different countries view the prospects for nuclear energy differently. Some of them continue active internal discussions on whether it is possible or not to develop nuclear energy."

Energy security was a focal theme of this year's G-8 summit, after hurricanes in the Gulf of Mexico drove global oil prices to new highs last year and Europe was caught short of gas after a price fight between Russia and Ukraine this winter disrupted supplies. Since then, Iran's standoff with the West over its nuclear program and renewed violence in the Middle East have sent oil prices even higher.

In their statement, the G-8 leaders said they were committed to transparency, competition and increased investment in the energy sector.

"Development of transparent, efficient and competitive global energy markets is the best way to achieve our objectives," they said.

They identified 11 key issues, among them diversification of supply and demand, energy efficiency and the safeguarding of critical energy infrastructure, including against possible terror attacks.

Delegates, however, suggested that the statement was out of step with the real situation, not least because of concerns over the openness of Russia's vast energy markets.

"In terms of language, it's extremely positive - it's the reality that's lacking," an EU official said Sunday on condition of anonymity because he was not authorized to make a public statement.

The official said he was glad for the political attention paid to the issue, but said that much investment and diversification were necessary.

"There's not a lot that has changed on the ground," he said.

Diplomatic officials with the French delegation said of the statement: "We wanted it to go much further."

Worries over Russia's reliability as a supplier were highlighted by the price fight with Ukraine that saw supplies to Europe disrupted when Moscow temporarily switched off the gas to its neighbor.

That led to criticism that Russia had destabilized European energy supplies by using its vast energy clout to punish Ukraine's western-leaning government, and highlighted Europe's dependence on Russia for a quarter of its oil and gas.

Just last week, Britain unveiled its energy plan for the coming decades and said nuclear power could make a "significant contribution" to the country's needs as it seeks to reduce dependence on imported fuel.

Prime Minister Tony Blair has claimed that without new nuclear power plants, Britain will rely on gas for 55 percent of its energy needs by 2020 - up from 38 percent now. As much as 90 percent of that gas would be imported, he has said, leaving Britain dangerously dependent on the Middle East, Central Asia and Russia.

But nuclear power has numerous opponents, notably Germany. Under an agreement with industry negotiated by former Chancellor Gerhard Schroeder, Germany plans to phase out nuclear power completely by about 2020. Some members of Chancellor Angela Merkel's conservatives are pressing for a rethink, but her Social Democrat coalition partners are opposed.

Source: Associated Press/AP Online

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