The EU's policy adjustment after the energy shortage has begun, and the direction is beginning to take shape. The recent move by the EU to include nuclear power and gas in the sustainable financing category is a signal. Regarding nuclear power, there has always been a debate within the EU over pro-nuclear and de-nuclear views. Judging from the performance of the past few years, it seems that the voices of the denuclearists have prevailed. Among them, the nuclear power giant France plans to gradually reduce the amount of its nuclear power is the embodiment of the upper hand.
Now that the situation has changed abruptly, the opportunities for nuclear power seem to have suddenly increased. The European Commission said in a statement that in some cases, nuclear power and natural gas should be considered as transitional energy sources in the energy transition process. Adequate nuclear power supply can achieve low hydrogen production costs, and "yellow hydrogen" can play a key role in the development of the hydrogen energy economy. Of course, the EU is not without conditions for the development of nuclear power, but requires that new nuclear power projects must have plans, funds and locations for the safe disposal of radioactive nuclear waste, and that nuclear power plants meet the standard of no major harm to the environment. But these regulations, in essence, are nothing more than a refresh of the previous nuclear power management measures. Regarding the development of nuclear power, the prevention of pollution caused by it has always been quite strict in various countries.
The shortage of natural gas has caused the EU to suffer this time. The EU's recent policy adjustments have also paid special attention to natural gas. The EU's positioning of natural gas is to replace coal, with a focus on the power sector. The EU's previous focus on replacing coal power was based on green and renewable energy. When extreme weather last year caused the renewable energy system to fail to work, the EU had to turn back and rely on natural gas and coal for emergency response. For natural gas power generation, like electricity, the EU has put forward new requirements. Specifically, new gas power generation projects must have a carbon emission intensity of less than 270 g/kWh, and must be licensed by the end of 2030. If you look closely at this regulation, it actually has the characteristics of refreshing.
The United States has always been a major country in the development and utilization of nuclear energy, and nuclear power occupies a relatively high proportion in its power supply. Despite the Three Mile Island nuclear leak in the 1970s, the US as a whole has always been more tolerant of nuclear power. This is a significant difference between the United States and Europe. And natural gas is more important to the United States. After the shale revolution, the status of natural gas in primary energy sources in the United States has risen rapidly. The United States, like the European Union, will not be spared the energy shortage in 2021. The energy shortage has led to a sharp rise in the price of coal, gas and even uranium in the United States. After the energy shortage, the policy adjustment of the United States is consistent with the basic logic of the European Union. The recent U.S. energy policy has rectified the new policy at the beginning of the year, and the support for oil and gas exploration and development has been significantly increased. The natural gas resource potential in the United States is huge, and the shale revolution has a resource base for continuation and development. The vigorous development of natural gas power generation to replace coal power generation should continue for a long time. As for nuclear power in the United States, there is still ample room for development. The U.S. House of Representatives Committee on Climate Crisis released a report in 2020, proposing a goal of achieving net-zero greenhouse gas emissions across the U.S. economy by 2050. Among them, the Climate Crisis Action Plan includes support for keeping existing nuclear power plants operating and calls on Congress to support the development of advanced nuclear technology. After the energy shortage in the United States this time, the development trend of nuclear power will not be weakened, or even strengthened.
The direction of carbon neutrality is undoubtedly correct and meets the basic requirements of sustainable development of human society, but the path needs to be arduously explored. In the past year, the global energy supply has seen many maladjustments and disharmony. The key path to control greenhouse gas emissions lies in the adjustment of the energy structure and the improvement of energy efficiency. Controlling total energy consumption through energy efficiency improvement and controlling carbon emissions through structural adjustment and technological progress are the long-term efforts of all countries. On the issue of promoting carbon neutrality, the replacement of fossil energy by new energy cannot be overemphasized. Energy is the source of power for the operation of human society. In order for the economic and social operation of any country to operate smoothly, it is first necessary to achieve stable energy supply, and to pursue green and low carbon on the basis of stable supply.
An objective evaluation of the latest energy policy adjustments in Europe and the United States should be said to be a down-to-earth and pragmatic move. Recently, the U.S. Department of Energy officially announced the achievements of energy development in 2021. Under the main theme of its commitment to clean energy technology breakthroughs, there is the purpose of vigorously developing CCUS technology to support fossil energy in carbon emission reduction.