This video is my entry to the 2017 Masdar Engage Blogging Contest, part of Abu Dhabi Sustainability Week. Vote here for my video!

Masdar’s Global GenZ Sustainability Survey found that we believe that climate change is the biggest threat over the next decade. The solution to mitigate climate change lies in energy and we need to develop energy technology that is not only clean and reliable, but also affordable and abundant. Small modular reactors are simple and flexible and can be scaled up or down according to needs. This advanced nuclear technology is ready to be deployed by 2026. All we need is additional investment for commercialization and push from policymakers to make it happen.

Climate change may be one of the biggest challenges of our time. The thing is, we do have the technology to solve it. The problem is that it's expensive - as compared to traditional fossil fuels that are currently providing most of our energy. In his recent annual letter, Bill Gates says: 

Renewable energies, like solar and wind, are clean but can't compete in an open electricity market without subsidies. Carbon sequestration with fossil fuels only makes sense with a high carbon tax. And, because of strict regulations and high construction costs, nuclear energy is also expensive.

From the perspective of the fuel and reactor itself, nuclear energy is actually very inexpensive. Uranium fuel has a very high energy density, so a lot less of it is needed than fossil fuel to produce the same amount of electricity. High regulatory requirements drive up the cost both during construction and operation, but also make nuclear power one of the safest industries in the world.

Nuclear power plants made a lot of sense to build in the 1970s because energy markets were regulated and prices could be set to ensure that the plant would make money over a long period of time. Since then, the reform of the electricity industry has been undertaken as part of wider economic reform driven by a range of factors including the globalization of the world economy and pressures to improve domestic and international competitiveness, trends towards smaller government and emerging beliefs in free market principles.

The current energy market, in most industrialized countries, depends on electricity prices for the benefit of consumers, and is not dependent on the environment, emissions, or reliability.

Many large nuclear power plants under construction right now, especially in Europe, are facing significant cost overruns and investors are threatening to pull out. In the past few years, China has been the most successful in completing construction and putting nuclear reactors online. Although the Chinese electricity industry has undergone some reform, most of it is still owned by state-holding enterprises. In addition, cheap labor and material decrease construction costs.

In the United States, nuclear power plants are closing early - well before their license retirement dates - because they can't compete with low natural gas prices and the short-term nature of the competitive market. Illinois may be the first state to pass an energy law that would include implementation of a zero emission standard, specifically to keep nuclear power plants open.

Electricity markets are only moving more and more towards deregulation and open markets. Government incentives and subsidies can't be the only enabler for clean energy. Clean energy sources need to be able to compete on price. The costs of renewables are decreasing every year, but are not enough to tackle the climate change and energy problem.

Significantly reducing the construction and operation costs of nuclear power plants could be the "energy miracle" that is needed for climate change. This is possible through streamlining regulation, modular construction and efficient operation. More on this in the next post!

You may or may not have heard the hype about “COP21” in the media, political arenas, or on the cover of an airport magazine (pictured above). It kind of sounds like an underground music festival or maybe a conference for cops? It is a conference...in early December, Paris will host the 21st Conference of the Parties of the United Nations Intergovernmental Panel on Climate Change. So not as exciting as a music festival, but it does have far more potential for global impact.

The Kyoto Protocol following the summit in 1997 brought 37 countries together to pledge to reduce their greenhouse gases by at least 5%. Kyoto brought the issue of climate change to direct policy, but most countries have failed to meet their Kyoto goals. The 2009 summit in Copenhangen failed to reach consensus and the decision was delayed to 2015, to COP21.

The objective of COP21 is to devise a new agreement in which countries will pledge to reduce green house gas emissions in order to keep the average global temperature increase under 2 degrees Celsius (as compared to pre-industrial levels). This means reducing greenhouse gases by 40 to 70% by 2050 from 2010 levels.

While the contribution of human activity to climate change is still disputed by some, action needs to be taken to mitigate the immediate impact of fossil fuels on human health and the environment. Air pollution has become a major concern for China. Island nations are completely threatened by rising sea levels from melting ice caps. 

Recognizing that cities are responsible for 70% of carbon emissions, 1000 mayors and city officials will come together at a side summit at COP21. Led by Paris mayor Anne Hidalgo, and NYC’s Michael R. Bloomberg, cities will devise a local plan to combat global warming.

With more than 1 billion of the world population still without electricity, the global demand for energy continues to rise. Developed countries must pave the way in clean energy and foster sustainable development in growing economies.

For more information, check out the COP21paris.org and the IAEA's 2015 report on Climate Change and Nuclear Power.

by Lenka Kollar

​18% of the worldwide population, or 1.3 billion people, don't have access to electricity, according to the OECD. And, nearly 40% (2.7 billion people) still rely on traditional biomass (wood, charcoal, agricultural waste and animal dung) for cooking. Most of these people are in Sub-Saharan Africa and developing Asia, regions that are experiencing large economic and populations growth.

Access to sustainable forms of energy leads to immediate and significant savings in labor needed for collecting traditional fuels. In addition, the use of artificial lighting provided by electricity allows people to work beyond daylight hours. With more time, people in developing countries can do more productive activities the generate more economic growth, such as education and industrial work.

Access to electricity allows for the refrigeration of food, thus reducing the risk of food shortages. Organizations have access to information technologies with electricity and computers, further enhancing education and communication. Energy is also a major contributor to improving access to modern medicine.

Population growth and rapid urbanization will drive upward pressure on energy demand in developing countries, this will have a major impact on the environment. The magnitude of this impact on climate change will strongly depend on policy measures undertaken by governments. 

Governments and international organizations are working together to tackle the global development and energy challenge through the UN Sustainable Development Goals. In addition, a new legal instrument on climate change will be prepared and approved at the 21st Conference of the Parties (COP21) in Paris this December, superseding the Kyoto Protocol.

A plan is needed to keep the "2-degree" scenario, meaning that we must control the emissions of greenhouse gases so that the increase of global average temperature will not exceed 2°C relative to pre-industrial levels. This will take a comprehensive plan of action involving sustainable development, energy efficiency, and, most importantly, extensive use of clean energy.

For more information, check out the 2015 IAEA Report on Climate Change and Nuclear Power.

by Lenka Kollar

With the highest carbon emissions and dependence on fossil fuels in decades, Japan has begun the first steps towards restarting its nuclear energy program. Unit 1 of the Sendai nuclear power plant was restarted this week and will be in full commercial operation generating electricity in September. This marks the beginning of Japan restarting its nuclear fleet after two years of standing idle.

Nuclear power plants in Japan were gradually shut down following the accident at the Fukushima Daiichi nuclear power plant after the great earthquake and tsunami in March 2011. Japan's energy future remained uncertain until the national decision was made to restart the nuclear power program. 

The nuclear power shutdown forced Japan to depend on imported fossil fuels for energy production. Nuclear power benefited the Japanese economy ¥33 trillion ($276 billion) over the years by reducing dependence on foreign oil. Nuclear power also allowed Japan to reach its Kyoto Protocol targets by greatly reducing greenhouse gas emissions (read more).

The nuclear power shutdown allowed the Japanese nuclear regulator and utilities to conduct safety inspections and update new post-Fukushima safety standards. Twenty more reactors are progressing through the restart process while a few older reactors are being retired and decommissioned.

By Lenka Kollar

Last month the European Commission announced their plan to integrate all 28 national energy markets of the EU, with the main goal of independence from energy imports (i.e. gas from Russia). The current fragmented system will be transformed into an "Energy Union" where gas and electricity are freely transported within Europe.

The EU as a whole is the largest importer of natural gas in the world and many member states are 100% dependent on Russia for gas. To alleviate this dependence, the EU plans to build a new “southern corridor” that will pump gas from the Caspian basin to Europe via Turkey.

An EU-wide regulatory framework will also call for a unified energy policy, which may prove to be a challenge. Will Germany and Austria be able to agree on a policy that includes nuclear energy? How will renewables be leveraged in a larger, more complicated market? The EU's target is to have nearly a third of electricity from clean energy by 2030. 

Each of the member states has different resources and different costs for producing electricity. A unified grid and gas network might mean that energy prices are reduced in some states at the expense of consumers in others. Formulating an energy strategy, taking into account all of the European stakeholders, will be complicated and likely involve intense negotiations between states. 

However, the benefits for an energy union are apparent: reduced dependence on gas imports, more options for consumers, and investment into a smarter grid to increase energy efficiency. And, maybe Germany will even reverse their nuclear energy phaseout mandate? 

The Abu Dhabi Economic Vision 2030 is an initiative to diversify the economy from oil and gas to other industrial sectors, as partly described in my earlier post on wealth before development. The UAE must diversify for fiscal, economic, socio-economic, and conservation reasons. The economy is vulnerable to oil prices and the oil industry itself does not create a lot of jobs within the country. 

The Khalifa Fund for Enterprise Development is funding small and medium businesses and has lent out over 1 billion dirhams to about 600 projects so far. Their idea is to foster an entrepreneurship culture within the UAE by identifying and encouraging citizens that are serious about starting a business and providing them with the necessary tools and funding. One interesting example is that Khalifa has funded artisans, mainly women, to design travel pouches for Etihad airlines.

Right now the economy is 70% resource (oil) based and 30% knowledge based. The Abu Dhabi Education Council is trying to flip this ratio. They've partners with top universities such as NYU and INSEAD to bring campuses to Abu Dhabi. In addition, only 20% of university graduates are in the STEM fields, but much more human capital in technology will be needed to support a knowledge-based economy.

One of the emerging sectors is renewable energy. The UAE is investing in renewable energy to diversify the energy supply, reduce carbon emissions, and create jobs. Renewables can also reduce water consumption for power generation by 19%. The International Renewable Energy Agency (IRENA) will actually have its new headquarters in Masdar City (pictured above). 

By Lenka Kollar

I'm currently participating in the Abu Dhabi Action Learning Module sponsored by INSEAD and the UAE. We have a great group of 45 students from all over the world, some of which have worked in the region and others, like me, that have no experience here but are very interested.

The UAE was founded in 1972 by a conglomeration of seven emirates with Abu Dhabi as the capitol. The economy predominately depends on oil exports and has thus created a tremendous amount of wealth in the country. Unlike other prosperous nations, the wealth came before industrial development and the UAE is now using the wealth created by a resource-based economy to diversify into the industrial and technology sectors.

Mubadala is a government mandated investment fund to diversify the UAE's industry from oil and gas for a sustainable future economy. The fund represents about 10% of the wealth from oil resources. One sector that Mubadala has focused on is aerospace manufacturing. The Strata plant produces parts for Airbus and employs many local employees, 85% of which are women. Global partnerships bring industry to UAE. The Siemens regional headqaurters, for example, is in the new Masdar City, which is the first fully sustainable city in the world. The Masdar Institute conducts research in sustainability and renewables.

Other Mubadala investment projects include renewables, utilities, healthcare, and other segments of the oil industry. Under a separate mandate, the UAE is also investing in nuclear energy.

By Lenka Kollar

Unprecedented catastrophes can happen in many industries, from energy to transportation to space. Some are caused by man-made errors while others by severe weather or other uncontrollable conditions. Regardless of the cause or magnitude, any perceived major crisis will get media attention and likely have a negative affect on that industry and/or company. 

The economic affects on a company or industry after a severe accident are generally dependent on the status of the industry before the event, according to a study by The Boston Consulting Group (BCG) on the Deepwater Horizon disaster (pictured above). Industries and companies with positive public perception and economic growth before a catastrophic event will be able to better bounce back afterwards. While sectors with a negative perception are more likely to experience very negative affects or even die out after a crisis.

While governments attempt to respond to these accidents, regulations and policy changes are usually quite limited and very local. In addition, BCG states that the impact on the industry largely depends on the existence of economic alternatives and public perception. The huge amounts of effort that firms put into risk identification and mitigation could perhaps be better spent on preparing better crisis response.

This theory can be applied to the nuclear industry because severe accidents, such as at Fukushima Daiichi in Japan, are extremely unlikely and difficult to predict, especially if they are caused by uncontrollable conditions. More preparation can be spent on the response effort required after an accident. Nuclear power plants in the United States already have robust emergency planning involving the community, state, and country that can go into effect immediately during an accident. But these response efforts should be reevaluated and possibly redesigned to make sure that they do not cause panic in the community and include accurate information dissemination to the media and public. The accident at Fukushima can be used as a case study to come up with more effective methods in dealing with an unpredictable crisis in a way that keeps the public safe and the industry functioning after.