Caroline JORANT Directeur Non Prolifération, Institutions et Accords internationaux
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2 Carnegie International Nonproliferation Conference Caroline JORANT Directeur Non Prolifération, Institutions et Accords internationaux Carnegie International Nonproliferation Conference Washington - June 25, 2007
3 Carnegie International Nonproliferation Conference Outline: Introduction The Industry approach : WNA report Comments on different proposals Conclusion 3 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
4 Industry views on fuel assurance proposals Introduction: Prospect for a significant expansion of nuclear energy worldwide Wise to avoid unnecessary dissemination of sensitive facilities Need to guarantee supplies to fuel reactors in a sustainable - reliable and economical manner 4 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
5 Industry views on fuel assurance proposals The industry approach to increase guarantee of supply: Framework of discussions Within WNA, Security of international fuel cycle WG was launched in April 2004 Three sub groups including enrichers and users participated WNA report adopted in May 2006 Main findings Competition exists No major difficulties experienced, nor expected, from the production/commercial stand point Only possible threat, of a political nature, is denial of export authorization 5 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
6 Industry views on fuel assurance proposals Proposal A «guarantee-in-depth» concept ; the three levels Sharing the responsibility between service suppliers IAEA as a trigger Requirements/conditions Level 1-2 call for a programmatic consent/export authorization subject to suspension only in case of violation of non pro and safeguards commitments upon request by IAEA Avoid disturbing the market on unjustified grounds; level 3 is last resort option Avoid excluding new comers when / if justified No retaliation /sanction commitments from other States 6 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
7 Comments on the different proposals Comments on the different proposals: GNEP A welcome global vision but long term (commerical fast reactors to burn actinides) Must not introduce prohibition or affect States sovereign rights needs a sustainable commercial model to industrial development 6 countries proposal and UK bond A useful political framework Could be enhanced through export authorization UK bond concept, goes in that direction Fuel bank fits the 3rd level Welcome provided conditions of implementation do not disrupt the market (prices, conditions for putting quantities or capacities back on market ) Should be constituted from HEU stocks or result from an international call for tenders 7 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
8 Comments on the different proposals Japanese proposal: Monitoring and anticipating possible gaps between expected needs and capacities a complementary measure welcome Enrichment or international fuel centers: Unrealistic for existing companies (legal hurddle) Not to be granted a privileged access to markets because of its multinational ownership Additionnal guarantee if located in already supplier state? Rather a solution for new regional based companies 8 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
9 Conclusion Conclusion: Since the 70 s with the development of Urenco and Eurodif, diversity of suppliers, (4) of countries involved (6), a new technology deployed (centrifuges, more adaptable tool) the conditions of the market have dramatically evolved Maintaining the conditions for a healthy, free competition and a reliable industry is of paramount importance, avoid disrupting the market 9 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
10 Conclusion Most important is the political commitment of supplier countries to consider guarantee of supply as a prominent non proliferation tool. Fuel bank system should really only play a symbolic but welcome role Need to check the real concerns of today s and tomorrow s customers, IAEA may help. 10 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
11 the «guarantee-in-depth» concept Level 3 Level 2 Level 1 Existing World SWU Market Collective Guarantee of Supply through Government / IAEA Commitments Government (IAEA) EUP Stocks Retour 11 Carnegie International Nonproliferation Conference Caroline JORANT - June 25,
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