LONDON: Developed countries are increasingly bold in planning to reduce nuclear power but hesitant in announcing clear plans to cut greenhouse gas emissions, leaving themselves wriggle room to replace low carbon nuclear generation with fossil fuel gas.
It is particularly tempting to be vague about timetables for cutting carbon dioxide (CO2) emissions as countries have failed to explain how lost nuclear capacity could be matched by a ramp-up in carbon capture and storage (CCS), which remains untested on gas and coal-fired power.
The temptation to delay decisions — and development of CCS — is especially strong as the consequences of phasing out nuclear will be felt mostly after 2020 as aging plants are retired.
Several developed countries have announced plans for shifting away from or phasing out nuclear power, including Germany, Japan, Belgium, France, Italy and Switzerland, but none have formal, binding CO2 targets after 2020.
The most probable outcome is that interim CO2 targets will continue to be weak or to be broken, as unabated gas and coal power generation is used to replace lost nuclear capacity.
The European Commission said last December that all fossil fuel power plants should be fitted with expensive CCS from around 2030, if the European Union is to slash emissions by the middle of the century.
“CCS contributes significantly toward decarbonization in most scenarios, with the highest penetration in case with nuclear constraints,” it said in its “Energy Roadmap 2050.”
CCS is meant to trap carbon emissions from fossil fuel flue gases and pipe them underground, but is still untested at a commercial scale on power plants partly because it adds at least $ 1.5 billion to the upfront capital cost per gigawatt of electricity generating capacity.
The alternatives are either to eliminate fossil fuels except as back-up for renewable energy, or else to relax medium-term carbon emissions targets, most of which are only aspirational and therefore politically feasible to downgrade.
The impact on unabated gas-fired power of ambitious carbon emissions targets is being debated in earnest only in Britain, which is alone in having legally binding CO2 targets beyond 2020.
Other countries are content to announce firmer plans for nuclear power in the 2020s and beyond, but not for carbon.
Coal-dependent Poland in June even voted against allowing the European Commission to propose a 2030 carbon emissions target, alone against the EU’s other 26 member states.
The commission will now prepare a discussion paper which has no timeline yet, although Energy Commissioner Guenther Oettinger suggested last December that a decision should be made by 2014 on 2030 goals.
French President Francois Hollande last Friday called for deeper cuts in European Union CO2 emissions as he confirmed plans to scale back nuclear power to half of the country’s power generation, by 2025, from three-quarters now.
Hollande recommended a target for a 40 percent cut in European Union carbon dioxide (CO2) emissions by 2030, but did not specify a French national target.
That echoed a European Commission impact assessment, attached to the energy roadmap last December, which suggested energy-related carbon emissions cuts of 38-41 percent by 2030, below 1990 levels.
Japan’s government has backed a withdrawal from nuclear, if not a complete exit, by applying a 40-year limit on the lifetime of reactors, which means most would shut down by the 2030s.
Tokyo also last week suggested a goal to cut greenhouse gas emissions by 20 percent by 2030 compared with 1990 levels.
That is less ambitious than Japan’s present target to cut emissions by 25 percent a decade earlier, by 2020, which was conditional on a global climate deal that is now out of sight.
Unlike European countries, therefore, Japan may be happy to acknowledge that reducing or phasing out nuclear will come at the expense of climate targets.
Germany was the first country to react to Japan’s Fukushima crisis, deciding completely to abandon nuclear power in a step-by-step process that is to culminate in 2022.
Berlin has voluntary targets to cut carbon emissions by 55 percent by 2030 over 1990 levels.
Both the European Commission and the International Energy Agency have made it clear that most fossil fuel power generation would have to apply CCS from around 2030 to meet ambitious greenhouse gas cuts, especially in a scenario with less nuclear power.
But the EU is way off the target to deploy 10-12 commercial-scale CCS power plants by 2015, as originally envisaged, with none under construction yet and plans announced in July for just two to three using a fund raised from auctioning emissions permits.
In the “low nuclear case” set out in its World Energy Outlook late last year, the International Energy Agency modeled an arbitrary scenario where the world’s nuclear capacity was barely half that expected under present policies.
It found that staying on track to meet ambitious targets for reducing carbon emissions would still be possible, but only where CCS was “very widely deployed by 2035.”
Britain will provide a first test of these energy choices, in a country that has encouraged new nuclear power, with the government promising a gas strategy before year-end.
Its climate advisory panel, the Committee on Climate Change, has proposed emissions cuts of 60 percent by 2030, plus an almost zero carbon grid, and gas-fired power limited to operations which cut carbon using CCS or as back-up to renewable energy.
The Committee last week wrote to Liberal Democrat climate and energy minister, Edward Davey, saying: “Extensive use of unabated gas-fired capacity ... without carbon capture and storage technology (CCS) in 2030 and beyond would be incompatible with meeting legislated carbon budgets.”
Davey replied: “After 2030 we expect that gas will increasingly be used only as back up, or fitted with Carbon Capture and Storage technology,” not quite meeting the committee’s expectations.
Meanwhile, Conservative finance minister George Osborne appears much less keen, announcing gas investment tax cuts in July, and adding: “The government is signaling its long-term commitment to the role it (gas) can play in delivering a stable, secure and lower-carbon energy mix.”
The signs therefore are of a fudge, where the government will avoid fixing a date to mandate CCS with gas-fired power, or a target for grid carbon intensity in 2030.
That would be consistent with global trends where such decisions are avoided for a decade or more, implying more gas and coal, and therefore more carbon dioxide.
The author is a Reuters
market analyst. The views expressed are his own.
Targets to cut carbon lag nuclear phase-out
Targets to cut carbon lag nuclear phase-out
Saudi Maaden reports 156% profit surge to $2bn on strong commodity prices, record production
RIYADH: Saudi mining and metals company Maaden has reported a 156 percent jump in its net profit attributable to shareholders for 2025, driven by higher commodity prices, record production volumes, and a one-off bargain purchase gain.
The state-backed giant posted a net profit of SR7.35 billion ($1.95 billion) for the full year 2025, an increase from SR2.87 billion in the previous year. The firm’s revenue surged by 19 percent to SR38.58 billion, up from SR32.55 billion in 2024.
This comes as Saudi Arabia steps up efforts to expand its mining sector as a pillar of economic diversification, encouraging international participation and private investment to unlock the Kingdom’s estimated $2.5 trillion in untapped mineral resources under Vision 2030.
In a statement on Tadawul, the company said: “Performance was led by record phosphate production, near record aluminum production, an increase in all three of Maaden’s main output commodity prices.”
The performance was also fueled by a 60 percent increase in gross profit, which reached SR14.79 billion. In its annual results announcement, Maaden attributed the top-line growth to “higher commodity market prices for phosphate, aluminum and gold business units,” as well as increased sales volumes in its phosphate and aluminum segments. This was partially offset by slightly lower sales volume in the gold unit.
Maaden’s CEO, Bob Wilt, hailed 2025 as a transformative year for the company, marked by strategic growth and operational excellence. “This was a great year for Maaden’s strategic growth. We delivered strong financial results and sustained operational excellence across the business,” he said in a statement.
“This was driven by growth in production across all businesses, including record-breaking DAP (di-ammonium phosphatevolumes), disciplined cost control across and a clear commitment to our role as a cornerstone of the Saudi economy,” Wilt added.
Profitability was further bolstered by an increased share of net profit from joint ventures and an associate. This included a one-off bargain purchase gain of SR768 million related to Maaden’s investment in Aluminium Bahrain B.S.C. The company also benefited from lower finance costs.
The fourth quarter of 2025 was strong, with Maaden swinging to a net profit of SR1.67 billion, compared to a loss of SR106 million in the same period of the prior year. Quarterly revenue rose 7 percent to SR10.64 billion.
The firm achieved record production of di-ammonium phosphate, reaching 6.72 million tonnes for the year, a 9 percent increase. Aluminum production remained near-record levels, while the company added a net 7.8 million ounces to its reportable gold mineral resources through discovery and resource development.
The phosphate division saw sales jump 17 percent to SR20.77 billion, with the earnings before interest, taxes, depreciation, and amortization margin expanding to 47 percent. The aluminum business reported a 9 percent increase in sales to SR10.99 billion, with EBITDA more than doubling in the fourth quarter.
Looking ahead, Wilt emphasized that the pace of growth will accelerate as the company advances key initiatives, including the Phosphate 3 Phase 1 and Ar Rjum projects, which remain on budget and schedule. Maaden has also secured a gas supply for its future Phosphate 4 project.
“This pace of growth will only accelerate. Not only as we advance projects and increase the scale of our exploration program, but as we continue to grow production and implement technology that will further modernize, streamline and unlock value,” Wilt added.
Earnings per share for the year rose sharply to SR1.91, up from SR0.78 in 2024. Total shareholders’ equity increased by 18.7 percent to SR61.59 billion.









