NEI: Carbon reduction ruling a positive step for nuclear energy

According to a federal appeals court ruling on Wednesday, the government is now permitted to include carbon reduction as a benefit when deciding on energy efficiency standards for appliances.

The judges of the U.S. Court of Appeals for the 7th Circuit said that the U.S. Department of Energy was correct to include climate damage reduction as a benefit of increased electricity efficiency.

“National energy conservation has global effects, and therefore, those global effects are an appropriate consideration when looking at a national policy,” the ruling said.

The Nuclear Energy Institute (NEI) pointed out that the ruling will have positive implications for zero-carbon technologies such as nuclear energy. Last month, New York state paid out zero-emission credits to nuclear reactors in the state, using the social cost of carbon to calculate the amount owed. Typically, nuclear plants are not paid extra for keeping their carbon output at zero.

“This decision is particularly important because the 7th Circuit has directly affirmed the use of the social cost of carbon in decisions by a government agency, and the court’s analysis could have a significant impact on policy choices in a variety of contexts,” NEI Vice President, General Counsel and Secretary Ellen Ginsberg said.