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A nuclear balancing act

by ArabianBusiness.com staff writer  on Wednesday, 26 December 2007
Jeff Haynes/AFP/Getty Images.

At 50 years old, the International Atomic Energy Agency (IAEA) has seen its initial role as a nuclear safety watchdog expand to that of a body that also attempts to prevent nuclear weapon proliferation.

Both roles are equally important today, not least because nuclear power generation is undergoing a renaissance, with both existing reactor countries adding new capacity and new entrants emerging, particularly in the developing world. Meanwhile, as recent events with Iran have shown, the IAEA has a highly political role to play.

At the end of 2006, there were 435 nuclear power reactors in operation worldwide.

The Agency was established on July 1957 and for the first 20 years or so primarily occupied itself with nuclear technology and safety. However, it became a more political body thanks to its role as the United Nation's (UN's) watchdog for alleged clandestine nuclear programmes in several countries notably Iraq, Libya, North Korea and latterly Iran. It has run the Nuclear Non-Proliferation Treaty (NPT) since 1970.

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While its detractors say this dual role to support peaceful nuclear energy use and preventing nuclear proliferation for military aims is incompatible, supporters say it would be impossible for these two functions to be carried out by separate bodies.

Established as the "Atoms for Peace" organisation within the UN, the IAEA, based in Vienna, works with member states and partners "to promote safe, secure and peaceful nuclear technologies." It is headed by director general Mohamed El-Baradei and six deputy directors general in charge of the major departments. It is required to report annually to the UN General Assembly and, when appropriate, to the Security Council on non-compliance by states regarding safeguard obligations and matters relating to international peace and security.

Agency programmes and budgets are set by its policy making bodies - a 35-member Board of Governors and the General Conference of all member states. Financing comes from a regular budget and voluntary contributions. The regular budget in 2007 was €283.6 million with the target for voluntary contributions to the technical co-operation fund for 2007 US $80 million.

The IAEA has three main areas of work:

• As the world's nuclear inspectorate. It verifies that safeguarded nuclear material and activities are not used for military purposes. It is also responsible for the nuclear file in Iraq as mandated by the UN Security Council;

• It helps countries upgrade nuclear safety and security and prepare for and respond to emergencies. Work is keyed to international conventions, standards and expert guidance. The main aim is to protect people and the environment from harmful radiation exposure; and

• It helps countries mobilise peaceful applications of nuclear science and technology. The work contributes to goals of sustainable development in fields of energy, environment, health, and agriculture, among others, and to cooperation in key areas of nuclear science and technology.

None of these roles are likely to diminish. For, as well as the non-proliferation aspect of its duties which has been exacerbated by recent geo-political tensions, there is also renewed interest for new power generation capacity, as part of the drive toward low carbon energy under climate change mitigation policies, as well as the replacement of ageing fleet in countries that have had nuclear reactors for several decades, not to mention interest (particularly in the Middle East) for nuclear powered electricity combined with desalination.

At the end of 2006, there were 435 nuclear power reactors in operation worldwide, representing 370 Gigawatts of generating capacity and supplying about 16% of the world's electricity. Several countries have also recently announced plans for significant expansion, specifically China, India, Japan, Pakistan, the Russian Federation and the Republic of Korea. In addition, Argentina, France, South Africa, Ukraine and the US have expressed an intention to expand their existing programmes.

Seventeen of the 29 new reactors being built are in developing countries. India has seven under construction as part of a substantial increase in capacity by 2022, while China has four and envisages a fivefold expansion by 2020. Several Asia-Pacific nations are also considering nuclear power such as Indonesia - with two 1000 MW reactors - and Vietnam.

In November the IAEA submitted to the Gulf Cooperation Council (GCC) a preliminary copy of the draft study of the GCC's project for utilisation of nuclear technology for peaceful purposes. GCC secretary general Abdul Rahman Al Attiyah said at the end of the OPEC Riyadh summit last month that GCC leaders would now consider the study. The programme was launched in December 2006.

November saw the Emirates Centre for Strategic Studies and Research hold a three-day event in Dubai on future Gulf energy sources including nuclear power. Undersecretary of the UAE's Ministry of Energy, Ali Abdullah Al Owais, was quoted as saying: "According to the initial feasibility study conducted by the GCC Secretariat, it is expected that nuclear energy will enter the Arab Gulf states' markets in 2025." He confirmed the GCC programme envisaged nuclear for both power and water desalination.


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