At a recent meeting of Indian provincial environment and forestry ministers, Prime Minister Narendra Modi noted that nuclear energy will play a critical role in helping the country to meet both its energy security and climate change mitigation goals. He stressed the need for developed countries to help India increase its nuclear energy production capacity by making nuclear fuels readily available.
The Prime Minister arrives in Canada this week, his last stop in a series of official visits during which exploring opportunities for nuclear energy co-operation has been high on the agenda. Modi took to Facebook before his departure to state that India looks forward to building civil nuclear energy co-operation with Canada, especially with respect to sourcing uranium to fuel nuclear power plants.
Canada’s nuclear energy sector has a lot to offer India—and not just in terms of uranium. India and Canada’s respective industries are highly compatible because nuclear power plants in both countries are derived from a common reactor technology. As a result, Canada and India can co-operate on developing technologies for enhancing the long-term performance of these plants. Both countries can also share best practices on the regulation and operation of their facilities.
Despite this compatibility, Canada-India nuclear energy co-operation has not achieved its full potential. The Canada-India Nuclear Cooperation Agreement came into force in 2013, putting in place the necessary mechanisms for preventing the use of nuclear materials for non-peaceful purposes. This opened the door for the sale of uranium and nuclear energy technology and services between the two countries, but trade outcomes have been limited.
Canada was the first country to conclude this type of agreement with India, but our head start may come to nought if Canada does not move quickly to take advantage of the agreement. The United States, France and Australia, whose companies sell uranium and/or nuclear energy technology and services, are moving fast to position themselves as key suppliers to India.
Prime Minister Modi’s visit provides a perfect opportunity for Canada to give the Canada-India civil nuclear energy relationship a shot in the arm.
First, Canada should seek to secure a win on the export of uranium to India—a high priority for Prime Minister Modi. It has been reported in both the Canadian and Indian media that Canadian uranium company Cameco is likely to make headway on a commercial deal with India during PM Modi’s visit.
Second, Prime Minister Harper should use the opportunity to discuss developments in India’s nuclear liability regime. Many Indian and foreign nuclear energy technology companies have not been willing to supply nuclear technology and services to India because laws in the country leave suppliers open to financial liability for damages to third parties in the case of a nuclear accident. India is currently developing an insurance pool as one option to help Indian and foreign companies manage this liability. The two prime ministers should assign a high-level India-Canada joint committee to discuss potential solutions for managing risk to suppliers.
Third, Prime Minister Harper should propose the development of a comprehensive Memorandum of Understanding (MoU) on Canada-India co-operation on civil nuclear energy. This document would go beyond the Nuclear Cooperation Agreement to highlight specific areas of collaboration on nuclear energy, including research and development and the exchange of regulatory and operations expertise, amongst other areas.
This MoU would have a number of benefits. It would highlight India’s achievements in the area of civil nuclear energy technology, setting a tone of mutual collaboration between the two countries.
It would also send a clear message to the Indian bureaucracy that the Prime Minister of India supports nuclear energy engagement with Canada. This would help Canadian nuclear energy technology companies successfully navigate the decision-making processes of India’s government.
Furthermore, the agreement would draw attention to Canada’s offerings as a tier one nuclear country at a time when other countries are moving to supply the Indian market.
On this visit, Prime Minister Modi is looking for ways that Canada can contribute to India’s energy security and economic growth objectives. Nuclear energy co-operation is an area in which Canada and India can make substantial advancements quickly. We should not let this opportunity slip by.
Stewart Beck is the President and CEO of the Asia Pacific Foundation of Canada, and the former Canadian High Commissioner to India
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