IAEA BEIJING MINISTERIAL ON NUCLEAR ENERGY -

UNCLAS STATE 036838

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: AORC CH ENRG KNNP TRGY IAEA
SUBJECT: IAEA BEIJING MINISTERIAL ON NUCLEAR ENERGY -
GUIDANCE FOR AMBASSADOR SCHULTE


1. (U) THIS IS AN ACTION REQUEST: Please see para 3.


2. (U) On April 20-21, 2009, the Government of China,
through the China Atomic Energy Authority, will host an
international ministerial conference on "Nuclear Energy in
the 21st Century." Following the Ministerial Conference held
in Paris in March 2005, this conference, organized by the
IAEA, is designed to allow participants to discuss
developments and emerging issues relevant to the role of
nuclear power in providing clear and sustainable energy for
national and regional development.


3. (SBU) The U.S. delegation to this conference will be led
by Ambassador Greg Schulte, the permanent representative of
the U.S. Mission to the IAEA. Ambassador Schulte has been
asked to give a speech on behalf of Energy Secretary Chu who
is unable to attend. The full text of Ambassador Schulte's
interagency-cleared speech is provided below. As
appropriate, delegation may also draw on the speech text when
dealing with other interlocutors in connection with the
Conference.

BEGIN SPEECH TEXT:

Ambassador Schulte's Remarks on Behalf of Energy Secretary Chu
IAEA International Ministerial Conference, Beijing
April 20-21, 2009

Introduction

It is a pleasure to participate in this second Ministerial
Conference convened by the IAEA here in Beijing. Secretary
of Energy Steven Chu has asked that I deliver this speech on
his behalf. He sends his sincere regrets that he is unable
to attend this event personally. As you know, this week is
Earth Week, and the Secretary is very engaged promoting our
energy and climate change agenda back in Washington. Let me
assure you, however, that the United States views nuclear
energy as an important part of our effort to put the world on
the road to a low-carbon future.

The global expansion of nuclear energy

It is now widely recognized that nuclear energy has the
potential to curtail dependence on fossil fuels and greatly
reduce greenhouse gas emissions while promoting greater
energy security.

Yet, given the stakes associated with the use ) and
potential misuse ) of nuclear energy around the world, it is
imperative that all nations with existing or new nuclear
power programs play an active role in global efforts to
address the safety, security, and safeguards implications of
nuclear power.

As President Obama recently stated, it is time we consider a
new framework for civil nuclear cooperation, one that allows
all interested countries to enjoy the benefits of nuclear
energy while limiting the associated risks of nuclear weapons
proliferation. This new framework should include measures
that improve energy security, including an international fuel
bank and related fuel services arrangements. This conclusion
reflects our recognition of the right of nations that comply
with global nonproliferation norms to share in the benefits
of peaceful nuclear uses.

We also share a responsibility to maintain and strengthen
global standards for safety, security and nonproliferation.
Today, access to nuclear energy faces significant challenges
) the development of sound infrastructure, the reliable
provision of nuclear fuel, and the safe and secure management
of spent fuel and nuclear waste. If we succeed in meeting
these challenges and discharging these responsibilities, I am
confident we will also succeed in promoting the responsible
development of nuclear energy.

The IAEA and multilateral cooperation

Over 50 countries have informed the IAEA of their interest in
nuclear power. In response to this, the Agency has developed
a high-level framework to help states chart a safe, secure,
and safeguarded path to nuclear power. The Milestones
document, as it is now known, has become an essential
reference on the desks of planners tasked with developing a
national nuclear power infrastructure.

The United States is a longstanding and strong supporter of
the infrastructure development concepts detailed in the
Milestones document. More broadly, the United States is
committed to increasing the capabilities of the IAEA to
better carry out all of its vital functions. Key among them
is improved international safeguards. The United States has
launched a program to build next generation safeguards
technologies and a new community of safeguards experts; to
assist full use of IAEA inspection authorities; and to foster
a culture of safeguards, security and safety in nations using
nuclear energy.

Though a very valuable reference, the Milestones document was
not intended for use as a detailed road map to nuclear power.
It is the responsibility of each state to assess its own
needs, identify its own priorities, and develop its own
strategic objectives. However, states need not pursue these
tasks alone, and there is plenty of guidance available
through pursuit of civil nuclear cooperation.

In addition to the vital role of the IAEA, other multilateral
groups are addressing the challenges facing nuclear energy
today. Forums such as the International Energy Agency, the
Nuclear Energy Agency, the Generation IV International Forum,
and the Global Nuclear Energy Partnership ) or GNEP )
complement and build upon the important work of the IAEA.

The international community through GNEP, as currently
structured, has established two working groups, both with
significant involvement from the IAEA. The first addresses
infrastructure development and seeks to help states begin
implementing the guidance conveyed in the Milestones
document. The second working group addresses reliable
nuclear fuel services as a viable alternative to the
acquisition of sensitive fuel cycle technologies. We need to
take full advantage of these and other exchanges to seek
solutions and innovations to bring about the new framework
proposed by President Obama.

Bilateral civil nuclear cooperation

Besides these multilateral avenues, new entrants have much to
gain through bilateral cooperation Governments with long
nuclear energy histories can help states avoid mistakes made
in the past while advancing sustainable programs. The United
States has a long history of civil nuclear cooperation dating
back to President Eisenhower's historic "Atoms for Peace"
speech. A half century later, our commitment to civil
nuclear cooperation remains strong. We have agreements that
provide a framework for U.S. nuclear cooperation with nearly
50 countries and the IAEA.

In addition, the Department of Energy, including the National
Nuclear Security Administration, and the Nuclear Regulatory
Commission have dozens of arrangements with their counterpart
institutions ) in countries with both developed and emerging
programs ) on issues such as energy planning, infrastructure
development, site selection, regulatory body strengthening,
new reactor safety evaluation and regulation, reactor
operation, decommissioning, and waste management.

Industry partners can also provide often-overlooked training
and consulting services to help states with the long-term,
strategic planning necessary for the century-long commitment
that accompanies a nuclear power plant. For our part, the
United States is committed to ensuring that all nuclear firms
compete exclusively on the merits of their products and
services.

Global nuclear liability regime

International cooperation will be greatly facilitated by a
global nuclear liability regime based on the Convention on
Supplementary Compensation for Nuclear Damage, or the CSC.
The United States believes that the CSC is essential to
assuring the greatest possible cooperation and taking full
advantage of the benefits of nuclear energy. The United
States has ratified the CSC and urges other countries to also
take this necessary action to establish a key component of a
sound nuclear energy infrastructure.

Reliable access to nuclear fuel

A second major challenge we will all face ) reducing the
risk of nuclear weapons proliferation ) will require
creative measures that allow countries to enjoy the benefits
of nuclear power while avoiding the spread of nuclear weapons
and the technologies needed to acquire them.

In 2003, Director General ElBaradei renewed the call for
international nuclear fuel supply assurances, writing that
"the margin of security under the current nonproliferation
regime is becoming too slim for comfort." Since then, more
than a dozen fuel assurance mechanisms have been proposed,
several of which are now under serious consideration in
Vienna. These are all designed to supplement the existing
fuel market, which all agree is functioning well, to
facilitate fuel provision in the case of political
disruption.

The United States is committed to working with the IAEA and
others to establish a new international nuclear energy
architecture ) including an international nuclear fuel bank,
international fuel cycle centers, and reliable fuel supply
assurances. Over time, these arrangements can be broadened
to include the back end of the fuel cycle through cooperation
in management of spent fuel and waste. Such multilateral
fuel cycle mechanisms would provide responsible states and
their utilities with assurances that fuel will always be
available for their nuclear plants.

The U.S. domestic view

In the United States, we believe that nuclear energy must
remain a significant component of our own energy mix, and we
continue to pursue the development of new capacity. Although
nuclear energy accounts for only about 20 percent of our
total electricity production, it is the source of about 70
percent of all our carbon-free electricity. This we cannot
ignore as we strive to meet our climate change objectives.

Our current interest is driven in part by a set of 1992 and
2005 legal provisions that authorize streamlined regulatory
processes that combine both construction and operation
licenses, government-backed loan guarantees, and tax credits
for electricity produced from advanced nuclear power plants.
As of March 2009, 17 power companies had applied for combined
licenses for 26 new reactors, and another 6 companies had
announced their intention for new licenses over the next 2
years. These license applications reference both U.S. and
foreign reactor designs.

Spent fuel management

Looking towards the future, our Department of Energy is
currently restructuring its fuel cycle activities, which were
previously focused on the near-term deployment of recycling
processes and advanced reactor designs, into a long-term,
science-based, research and development program focused on
the technical challenges associated with managing the back
end of the fuel cycle. These challenges will be thoroughly
vetted and resolved as we explore long-term solutions for
management and disposition of our spent nuclear fuel.

The United States also remains committed to the Generation IV
International Forum. There are significant benefits to be
gained by all member countries working together on Generation
IV technologies in the form of shared resources and expertise
and scientific efficiency.

Though technical hurdles exist, we believe that progress made
through a robust nuclear research and development program
will one day equip us with the advanced tools necessary to
deal with the third major challenge facing nuclear energy
today ) the safe, secure, and sustainable management of
spent nuclear fuel.

Closing

In closing, we are witnessing an unprecedented level of
interest in nuclear energy worldwide. While most new
reactors will be constructed in existing nuclear energy
states, tangible steps are being taken around the world
towards brand new nuclear power programs.

If deployed with the highest possible standards of safety,
security, and nonproliferation, nuclear energy will play an
essential role in combating climate change while advancing
peace and promoting sustainable development worldwide. The
United States is firmly committed to playing its part to
usher in the responsible expansion of nuclear energy.

END SPEECH TEXT.


4. (U) Department thanks Mission for its assistance in this
matter. The Department's point of contact for this speech is
Marc Humphrey (ISN/NESS).
CLINTON