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<p>The government recognises that reaching net zero emissions by 2050 will require
power to be generated from low carbon sources. The UK Government Green Financing Framework
explicitly states that nuclear power is, and will continue to be, a key part of the
UK’s low-carbon energy mix.</p><p> </p><p>Nuclear energy is excluded from the UK Government
Green Financing Framework, which is in line with current international market standards
for sovereign green bonds. The Green Bond Principles published by the International
Capital Market Association do not address the question of nuclear energy. All other
major sovereigns have explicitly excluded nuclear energy in their green bond frameworks.</p><p>
</p><p>Only two sovereigns (The Netherlands and Nigeria) have so far certified their
green bonds with the Climate Bonds Initiative Taxonomy – neither of whom included
nuclear energy in their frameworks.</p><p> </p><p>The Barclays report on nuclear energy
aligns with what is stated in the UK Government Green Financing Framework: that nuclear
power will play an important role in achieving net zero. The framework however does
not stipulate what the Government considers to be green and what is not – this will
be the role of the UK Taxonomy. Recognising however that many sustainable investors
currently have exclusionary criteria in place around nuclear energy, the UK Government
will not finance any nuclear energy-related expenditures under the Green Financing
framework.</p>
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