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4 things I learned at IYNC 2016 in China

8/2/2016

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By Lenka Kollar

Last week, I was fortunate enough to finally attend my first International Youth Nuclear Congress. IYNC is a community of young professionals from around the world that gets together every two years to transfer knowledge and promote nuclear technology. This year's conference was in Hangzhou, China. Besides meeting amazing people and listening to some great talks, here are my main takeaways:

Growth in the Chinese nuclear industry is real
China has already connected four new reactors to the grid this year and has 20 more under construction. I knew the magnitude of China's growth in the nuclear industry but it became even more apparent to me by seeing it first hand. The tone of this conference was different than that of the other nuclear-focused meetings that I've been to recently. In Europe, governments are phasing out nuclear energy and in the US, economics and subsidies are favoring natural gas and renewables over nuclear. But in China, nuclear is seen as essential to meeting the energy demand of a large and growing population. The sheer number of Chinese young professionals at this conference - and their excitement - proved the country's commitment to nuclear energy.

We need more female role models
While there were many female attendees at the Congress, from China and from around the world, there was not a single female speaker during any of the plenary sessions. We even had the Global President of Women in Nuclear speaking on a panel session, she should have been in a plenary! I know that plenary speakers are usually determined by the sponsors, but some effort can be made to promote diversity. It's not only that young women, like me, need role models in our industry, but young men also need to see that women should be successful in this industry.

Communication needs support and funding
My main presentation was in the communication panel session, and it was very well attended and fostered a great discussion among the attendees and panelists. One thing that became apparent is that everyone recognizes and agrees that communication and stakeholder involvement are important, but most organizations are unwilling to allocate the necessary human and financial resources to get it done properly. This is because the value added from good communication is indirect and very difficult to quantify. 

Be aware of the listening to talking ratio
I also participated in a workshop on World Wide Business, and we discussed the so-called "listening to talking ratio" between cultures. As the nuclear industry is becoming more and more international, it is essential for young professionals to be aware of the different ways in which culture communicate. For example, we can generalize that some cultures love to talk while others prefer to be polite and listen. Being aware of this and making sure that everyone is heard is important for effective intercultural teamwork.

Hope to see you at the next IYNC conference in Argentina in 2018!
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What is COP21?

10/29/2015

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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.
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Japan restarts nuclear power

8/13/2015

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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).
"Japan is the world's largest liquefied natural gas importer, second-largest coal importer, and third-largest net importer of crude oil and oil products...This substitution of more expensive fossil fuels [for nuclear power] led to higher electricity prices for consumers, higher government debt levels, and revenue losses for electric utilities." - EIA report on Japan (2015)
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.
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Nuclear agreement with Iran is a plan of action, not a political treaty

7/16/2015

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By Lenka Kollar

A summary of the Joint Comprehensive Plan of Action (JCPOA) between Iran and the E3/EU+3 (China, France, Germany, Russia, UK, US, and EU Foreign Affairs and Security Policy) is shown in the image below. 
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Click on image to expand
The technical measures in the JCPOA limit Iran's nuclear program to peaceful uses, as allowed by the Nonproliferation Treaty, and enhance transparency with oversight by the International Atomic Energy Agency (IAEA). Sanctions are lifted simultaneously with further actions in 8 years, including the possible opening of commercial nuclear trade between the US and Iran. 

This is a plan of action based on a set of measures overseen by an international agency (the IAEA). It is not based on trust, like a treaty would be. It does, however, provide steps in the right direction to form a better relationship between Iran and the US, EU, and the UN Security Council. The politics are complicated, and won't be easily resolved by an agreement. However, this plan of action is feasible because both sides agreed to it and it contains tangible technical measures than can be implemented and monitored. 

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Build trust with the new Iran nuclear deal

4/7/2015

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"This deal is not based on trust, it's based on unprecedented verification." - President Obama

By Lenka Kollar

Remember the interim deal reached with Iran a few months ago? According to President Obama's speech (above) last week, it's been successful and the United States, along with the rest of the P5, have negotiated a framework for a permanent agreement that will lift sanctions on Iran while deterring their nuclear program.

The key parameters of a Joint Comprehensive Plan of Action (JCPOA) regarding the Islamic Republic of Iran’s nuclear program include:
  • Reduction in uranium enrichment capability
  • Increased transparency and inspections
  • Suspension of reprocessing research (for plutonium)
  • Lifting of nuclear-related sanctions on Iran

As I always say, according to the Nonproliferation Treaty, Iran has the right to peaceful nuclear energy, but it needs to assure the absence of a nuclear weapons program through transparency. Iran has faltered on its obligations to the International Atomic Energy Agency (IAEA), and therefore, that justifies sanctions by the UN Security Council. 

The details of this framework take into account all parties interests and it is a good deal, overall. The international community can ensure the lack of nuclear weapons development in Iran while Iran keeps its peaceful nuclear technology, used for nuclear energy and research and development. Premier scientific programs and advanced electricity generation are important and a source of pride for Iran.

While this framework meets stakeholder interests and legitimizes those options, the negotiation was conducted using power from the side of the U.S. and the rest of the P5. As President Obama says, it is not based on trust. Because of this, I am concerned for the sustainability of the deal. 

Successful negotiations are built on good relationships and open lines of communication. The transparency portion of this deal will be the most important as it will build mutual trust and thus make the relationship between Iran, the IAEA, and international community stronger. A deal based on trust will be more sustainable and even eliminate the need for a "deal."

As a nuclear nonproliferation expert, I think this is a good framework, and my Iranian classmate agrees. I urge the U.S. Congress and other policymakers to support it.
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Reforming the Economy in Ukraine

3/31/2015

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By Lenka Kollar

Last week, INSEAD hosted the Ukrainian Minister of Economy for a dialogue with MBA students on reforming the Ukrainian economy. Aivaras Abromavicius has been in the office for just over three months and already set an aggressive plan in place to repair and expand the economy.

In addition to repairing the recent crisis, Abromavicius wants to undo bad policies from the last 20+ years. This involves deregulation, privatization, tax reform, and restructuring the ministry. Instead of dissolving the ministry completely, he hired a new leadership team, only keeping half of the employees, and drastically cutting the bureaucracy, or "fat," of the ministry and associated processes. 

Abromavicius is bringing in an international team and benchmarking other countries in initiatives such as tax reform and privatization. One of the primary hurdles is addressing the culture of corruption rampant in the nation. I liked the idea of joint customs control at the border to alleviate this issue.

Many of my Russian classmates were concerned about the current relations, political and economic, between Ukraine and Russia. I echo their concerns because Ukraine has a very important geopolitical position between Russia and the EU. Major gas pipeline from Russia to the EU run through Ukraine and the EU is reducing its dependence on energy from Russia. 

Abromavicius' reforms may be controversial but drastic policies are often needed in times of crisis. Outside perspective from foreigners and the private sector can bring value but do they really have what is in the best interest of Ukrainian citizens? Can we learn from a country in crisis to implement economic reforms elsewhere?
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EU Energy Union

3/18/2015

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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? 
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Sources of Power

1/29/2015

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By Lenka Kollar

In my International Political Analysis class at INSEAD this week, we analyzed the shifting of power in the world, specifically the rise of China and India. This being a business school, the focus of the conversation was on economic sources of power. While a strong economy and large GDP are important for maintaining power in this globalized world, political power is not necessarily determined by economic factors.

Towards the end of our class discussion, I finally brought up the issue of nuclear weapons. I think that my generation often forgets the political power provided by nuclear weapons because we did not live through the Cold War. However, we do live in a time where the world order is determined by nuclear arms. The P5 of the UN Security Council are the five official nuclear weapons states (United States, United Kingdom, France, China, and Russia) recognized by the Nonproliferation Treaty, to which almost every single country is a signatory. Other than that, only three other countries have nuclear weapons and there is significant international effort spent to prevent more countries from having nuclear arms.

Therefore, despite the evolving economic powers, I don't see political power changing unless nuclear weapons become obsolete or the P5 do actually disarm. However, there is a chance of more countries joining the "nuclear club" and perhaps diluting the power of the P5.

For a deeper discussion, read Nuclear Weapons as the Currency of Power.
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Abu Dhabi: Beyond the Oil Era

12/22/2014

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Masdar City in Abu Dhabi
The Stone Age came to an end not for a lack of stones and the oil age will end, but not for a lack of oil." – Ahmed Zaki Yamani
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). 
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Abu Dhabi: Wealth Before Development

12/16/2014

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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.
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Photos used under Creative Commons from Idaho National Laboratory, Jim.Richmond, Idaho National Laboratory, IAEA Imagebank