The global effort to ramp up alternative energy use is putting nuclear power back into the conversation. Uranium is used to create nuclear energy. As CNBC reported, it will be a topic discussed at the COP28 summit in Dubai.
“Building on the efforts made during COP 26 and COP 27, nuclear energy will feature even more prominently at COP28,” said Rafael Mariano Grossi, the International Atomic Energy Agency’s director general. The IAEA is co-hosting the summit in concert with the COP28 presidency.
“As more nations understand the role nuclear can play in achieving energy security and decarbonisation targets, global support for nuclear energy is growing,” Grossi added.
The topic of nuclear energy is certainly going to be a contentious one. That’s due to its sordid past from nuclear powerplant accidents. But technology is becoming more advanced and harnessing nuclear power is becoming a safer proposition. So it can slowly gain more acceptance globally.
In Germany, for example, the topic of nuclear power is a polarizing one. As CNBC reported, the closure of its last three plants in April 2023 has brought views from opposing sides.
“The German government took a decision which was in our view absolutely wrong, a strategic mistake to get out of nuclear,” said Friedrich Merz, the leader of Germany’s center-right Christian Democratic Union.
“The phase-out of nuclear power makes our country safer. Ultimately, the risks of nuclear power are uncontrollable,” said Steffi Lemke, Germany’s federal minister for the environment and nuclear safety, in April.
“We now face decades full of challenges before we can safely and responsibly dispose of our nuclear legacy,” she added.
Growth Opportunity in Uranium ETF URNM
Whether certain parties are for or against nuclear power development, the potential growth opportunity exists in uranium. If more widespread acceptance of nuclear energy grows, then consider the Sprott Uranium Miners ETF (URNM ).
URNM is a convenient way to get uranium exposure. Not just in the metal itself, but through miners as a backdoor play. For uranium mining exposure, consider URNM, which tracks the North Shore Global Uranium Mining Index and invests in global firms that mine, develop, and produce uranium as well as those firms that hold physical uranium or uranium royalties. Selected firms devote at least 50% of assets to business operations tied to uranium.
Various holdings in different countries further support the diversification of the fund. The majority of the fund is allocated into Canada, but it includes other countries, such as Kazakhstan, Australia, and the United States.
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