European Scrutiny Committee Contents


2 Nuclear non-proliferation

(30525)

8182/09

COM(09) 143

Commission Communication: Nuclear non-proliferation

Legal base
Document originated26 March 2009
Deposited in Parliament3 April 2009
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 21 April 2009
Previous Committee ReportNone; but see (29718) 10049/08: HC16-xxvi (2007-08), chapter 3 (2 July 2008)
To be discussed in CouncilTo be determined
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

2.1 The Commission notes that given the political context in recent years, with a growing number of countries looking into possibilities to engage a civil nuclear energy programme, there is an even clearer need to strengthen international guarantees of non-proliferation.

2.2 The Commission recalls that:

—  the Non-Proliferation Treaty (NPT)[6] sets out the general framework to address the non-proliferation challenge and entrusts the International Atomic Energy Agency (IAEA) to play a key role in this area; and which acknowledges the right of all NPT Parties to develop and use nuclear energy for peaceful purposes;

—  the UN Security Council acts as authority of last resort to address the cases of major breaches to non-proliferation commitments;

—  the European Union, the Community and their Member States act "within their respective competences, in multiple ways in this area, comprising actions in the framework of the Common Foreign and Security Policy (CFSP) as well as those founded on the Community Treaties." In this way, the Commission says, "the EU can provide a considerable contribution to addressing the non-proliferation challenge also at global level, based on its extensive experience in dealing with nuclear power and the range of instruments at its disposal."

2.3 The Commission also recalls that, in its Communication 10049/08 on "Addressing the international challenge of nuclear safety and security",[7] it announced that it would address to the Council and the Parliament a specific Communication on the various EU instruments available in the field of nuclear non-proliferation, in particular under the Euratom Treaty.

The Commission Communication

2.4 The Commission says that the purpose of this Communication is therefore:

"to set out the global context highlighting the need for strengthened international guarantees of non-proliferation (Section 2), to present the main available EU instruments in this field, in particular those under the Euratom Treaty, (Section 3), and the possible ways these instruments could be used to develop — in close coordination with the IAEA — stronger international guarantees of non-proliferation (Section 4)."

2.5 It notes that the proliferation risk from the use of nuclear energy arises from two specific nuclear activities, namely enrichment of uranium and the reprocessing of spent nuclear fuel — activities that "require very complex and costly technologies which can only be economically justified if a market demand exists from a large number of nuclear power plants" — and that, in this context of growing interest for nuclear energy, "the international community must do everything possible to minimize the risks of nuclear security incidents and/or diversion of either nuclear materials or technology to non-peaceful uses [and] ensure that conditions continue to be met regarding nuclear non-proliferation, including the norms of the NPT and of the IAEA.", which it sees as the key international actor in preventing nuclear proliferation, deriving from the NPT and the enhanced safeguards regime based on the Comprehensive Safeguards Agreements and Additional Protocols, and the right to possess fissile nuclear materials.

2.6 The Commission then reviews the main EU instruments in the non-proliferation area, beginning with Common Foreign and Security Policy (CFSP). The Commission notes that, beginning in 2003 with the European Security Strategy[8] and, within it, the EU strategy against the proliferation of weapons of mass destruction (WMD), non-proliferation has been a key policy objective, and that the EU's concern has been reinforced by the report on the implementation of the European Security Strategy approved in December 2008,[9] leading to the New Lines for Action in combating WMD proliferation endorsed by the 8-9 December 2008 GAERC. The Commission sees an important place for itself in implementing these New Lines for Action through different Community instruments and policies, and notes both that the EU has provided its full backing to the UN Security Council Resolution 1540[10] and that Council Joint Actions are on-going in support of the International Atomic Energy Agency (IAEA) actions.

2.7 The Commission sees a particular role in non-proliferation cooperation with third countries for the Instrument for Nuclear Safety Cooperation,[11] the Instrument for Pre-Accession (IPA)[12] and the Instrument for Stability (IfS)[13] — where this last-named will broaden its focus, which has hitherto been on training and assistance in the Chemical, Biological, Radiological and Nuclear (CBRN) fields in the former Soviet Union, to encompass new regions of concern, including South-East Asia, the Middle East and parts of Africa, in particular in the nuclear and biological fields, drawing on a budget of €300 million in 2007-2013.

2.8 The Commission then reviews the role of the Euratom Treaty, whose main objective is the peaceful development of nuclear energy, and where "many provisions of the Treaty cover activities and institutions which contribute to non-proliferation of nuclear materials, including at international level, where the Community may negotiate and enter into agreements with third States and international organizations (Chapter 10 Euratom)". The main Euratom related activities linked to the non-proliferation listed are:

—  Safeguard activities, where the Commission has the responsibility to verify that fissile nuclear materials are not diverted from their intended uses as declared by Community users, and where basic safeguards agreements have been concluded between Member States, Euratom and the IAEA; close co-operation with the IAEA extends beyond inspection to the implementation in the Community of the Additional Protocols to the safeguards agreements with the IAEA, which complement the IAEA safeguards system, enabling it to detect, beyond diversion of declared materials, undeclared nuclear activities; the Commission also supports the transfer of methodologies for safeguards through the implementation of various Community instruments (such as the TACIS programme with the Commonwealth of Independent States).

—  Health and safety, physical protection, illicit trafficking and export controls, which provide for licensing, authorisation and notification procedures which aim to guarantee that radioactive materials are not possessed, used or transported without appropriate regulatory control. Council Regulation 1334/2000 is the Community instrument that enables Member States to implement their commitments to the Nuclear Suppliers Group, where the Commission participates as an observer and chairs the committee set up by the regulation which addresses all implementation issues.

—  The Euratom Supply Agency, whose contribution to non-proliferation is mainly:

  • Authorising the conclusion of supply contracts, when nuclear materials are physically imported into the Community or exported from the Community;
  • Checking that supply contracts are concluded only for peaceful end-uses and that all supply contracts include a safeguards clause;
  • Export authorisation procedures for nuclear materials produced in the Community.

—  Research and the Joint Research Centre (JRC): The JRC has been entrusted with the development of methodologies and technologies for the implementation of safeguards, the training of both Commission and IAEA inspectors and the implementation of the European support programme to the IAEA; assisting in the transfer of the "acquis communautaire" to new Member States by training their authorities and experts during the enlargement process; and implementation of the TACIS Programme on nuclear security, including significant support to the Science and Technology Centres in Moscow[14] and Kiev,[15] which aims at limiting the proliferation of sensitive knowledge obtained by scientists in the framework of WMD programmes; continued support to programmes for the redirection of weapons scientists in CIS countries and other regions is being provided by the Instrument for Stability.

2.9 The Commission then examines The Possible Way Forward, proposing the following "key actions":

—  Strengthening support for the Non-Proliferation Treaty, its safeguards and the Additional Protocol;

—  Extending cooperation with key nuclear countries through bilateral Euratom agreements, in coordination with measures taken on the basis of the May 2008 Communication on "Addressing the international challenge on nuclear safety and security";

—  Contributing to the development of an international system of guaranteed supply of nuclear fuel for countries willing to develop nuclear energy without having their own nuclear fuel cycle facilities.

2.10 With regard to the last of these, the Commission draws attention to the 8 December 2008 decision by the Council in principle to support the establishment of a nuclear fuel bank under the control of the IAEA, to which the European Union could contribute up to €25 million, once the conditions and modalities for the bank have been defined and approved by the IAEA Board of Governors. The Commission says that "at the same time, the Council welcomed the readiness of the Commission to contribute to this project through relevant Community instruments", and suggests that "in order to speed up the decision making process, a mandate could be given to the Commission to contribute to the definition of the conditions and modalities for establishing the fuel bank." It sees "one of the main advantages of a multilateral approach" as being "to encourage new market entrants to voluntarily abstain from making complex and costly investments which are disproportionate to their needs, while bringing additional guarantees to fuel supply security." By "actively contributing to the development of such an initiative", the EU could "make full use of available Euratom and other Community instruments such as the Instrument for Stability and the Instrument for Nuclear Safety and should take into account both the provisions of international agreements, the Euratom Treaty and the good functioning of the European nuclear market.". With "the security of supply for nuclear fuels" being "essential for guaranteeing non-proliferation, in particular to prevent the spread of sensitive technologies, such as enrichment, the Commission says that the Euratom Supply Agency "should become a key actor in this process."

The Government's view

2.11 In his Explanatory Memorandum of 21 April 2009, the Minister of State at the Foreign and Commonwealth Office with responsibility for non-proliferation (Bill Rammell MP) comments as follows:

"Strengthening the Non-Proliferation Treaty. The European Union is active in championing the NPT at a political level. It played a central role in achieving a successful outcome to the 2007 NPT Preparatory Committee and promotes a balanced approach to reinvigorating the three pillars — non-proliferation, disarmament, and the peaceful use of nuclear energy — upon which the NPT is founded. The Communication sets out a menu of practical options for the EU to strengthen the non-proliferation pillar, which are complementary to the UK's priorities.

"The Prime Minister in his speech of 17 March, as well as supporting states who wish to develop civil nuclear power, emphasised the importance of ensuring certainty of detection and certainty of serious consequences for any party breaching its nuclear non-proliferation obligations. The UK shares the EU view that the IAEA safeguards regime needs to be strengthened and is pursuing several tracks to this end, including ensuring that the IAEA has the resources, powers and leadership it needs to discharge its duties.

"We are pushing hard for universal adoption of the IAEA Additional Protocol and are committed to looking at the development of next generation safeguards to provide even greater levels of assurance. The UK will publish later this year a 'Road to 2010' plan in advance of next year's key NPT Review Conference that will include proposals to make automatic both the referral of cases of material non-compliance to the United Nations Security Council and, except in the most minor cases, the adoption of sanctions.

"Extending Euratom Agreements. This Communication is an accurate portrayal of the various international/Community instruments and initiatives that contribute to the security of nuclear material. The proposed completion of further bilateral Euratom cooperation agreements should have nil impact on the UK — as these should contain identical physical protection provisions to those to which the UK is already bound. These obligations include compliance with the physical protection requirements of the NSG guidelines insofar as the UK is a recipient of nuclear material under these agreements.

"The UK welcomes extending Euratom cooperation with key nuclear countries, however we must ensure that a structured approach is taken to determine which states are 'key' and that any agreements are consistent with existing obligations.

"Nuclear fuel cycle. States have 'an inalienable right' under the NPT to develop and use nuclear technologies for peaceful purposes.

"It is, however, commercially unviable to set up an enrichment facility unless it is able to serve a number of nuclear power plants, and this is unlikely for most states thinking about embarking on a new nuclear programme. Hence there have been a number of proposals over recent years that seek to provide assurance that nuclear fuel supplies will not be interrupted for political reasons, thereby supporting states rights to civil nuclear power, while reducing the potential for the diversion of nuclear material for peaceful purposes.

"Among these proposals is the UK concept of a Nuclear Fuel Assurance (NFA — formerly called Enrichment Bond); using export licensing systems; and a number based on the idea of a physical bank of, or facility providing, nuclear fuel. The proposals can be complementary. The UK is finalising details on the proposed NFA and will consult with EU partners.

"We welcome the Commission's recognition of the importance of a nuclear fuel bank. We therefore welcome EU support for the Nuclear Threat Initiative's (NTI) suggested fuel bank under IAEA supervision, and welcome the efforts made by our partners to further the Multilateral Nuclear Approaches agenda. The proposals however remain incomplete and further detail is required. Some key issues are still outstanding such as where to locate the fuel bank and who will have access. We continue to discuss how we can develop both ideas (the fuel bank and NFA) with the Commission, our EU partners and with other interested parties (including the IAEA).

2.12 With regard to the Financial Implications, the Minister supports an EU contribution to the IAEA Fuel Bank of up to €25 million through the Instrument for Stability and the Common Foreign and Security Policy Budget. He says that resources to initiate that bank have now been committed and, in the coming months, a framework will be taken to the IAEA Board of Governors to outline how this might work; the IAEA would have physical custody of low enriched uranium available to all those member states that need fuel on the basis of criteria agreed in advance.

2.13 Finally, looking ahead, the Minister says that the Communication will be discussed by the nuclear counter-proliferation group CONOP on 24 April and the Atomic Questions Group (AQG) on 29 April.

Conclusion

2.14 As the Minister makes clear, the proposals in this Communication are somewhat of a work-in-progress. He also makes clear that he is not entirely content with all of them. He draws attention to the need for a structured approach to determine which states are "key" when it comes to extending Euratom cooperation, and for any agreements to be consistent with existing obligations. He also suggests that there are a number of ideas in play about how best to persuade non-nuclear states who want to use nuclear power not to develop their own enrichment facilities, and seems not to be entirely clear as to whether the UK's favoured concept — the Nuclear Fuel Assurance, or NFA, formerly called the Enrichment Bond — and the Commission's proposal for a nuclear fuel bank are complementary or not. He also does not comment on the Commission's proposal that "in order to speed up the decision making process, a mandate could be given to the Commission to contribute to the definition of the conditions and modalities for establishing the fuel bank", or that the Euratom Supply Agency "should become a key actor" in the process of preventing the spread of sensitive technologies, such as enrichment. These are questions that will no doubt be discussed in the working groups to which the Minister refers.

2.15 Nor does the Minister explain who or what the "Nuclear Threat Initiative" is; what the efforts made by our partners to further the Multilateral Nuclear Approaches agenda consist of; who those partners are; what the Multilateral Nuclear Approaches agenda is; what "the proposals" are; or in what ways they remain incomplete.

2.16 We should accordingly be grateful if, in due course, he would clarify the matters to which he and we have drawn attention. In the meantime, we shall retain the Communication under scrutiny.





6   Opened for signature in July 1968, the Treaty entered into force on 5 March 1970. A total of 189 parties have joined the Treaty, including the five nuclear-weapon States. Back

7   Which we considered on 2 July 2008; see headnote. Back

8   "A Secure Europe in a Better World", adopted by the European Council on 12 December 2003. Back

9   Council document 15708/03 of 12 December 2003.  Back

10   In April 2004, the UN Security Council unanimously adopted UNSCR 1540, establishing for the first time obligations under Chapter VII of the UN Charter for all UN Member States to develop and enforce appropriate legal and regulatory measures against the proliferation of WMD. The significance of Chapter VII is its binding nature on all UN Member States as a result of finding a threat to international peace and security. The full text is available at http://daccessdds.un.org/doc/UNDOC/GEN/N04/328/43/PDF/N0432843.pdf?OpenElement. Further information on UNSCR 1540 is also available at http://www.state.gov/t/isn/c18943.htm . Back

11   Council Regulation (EURATOM) No 300/2007 of 19 February 2007 establishing an Instrument for Nuclear Safety Cooperation, OJ No. L 81, 22.3.07, p.1. Back

12   Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance, OJ No. L 210, 31.7.06. p.82. Back

13   Council Regulation (EC) No 1717/2006 of the European Parliament and the Council of 15 November 2006 establishing an Instrument for Stability, OJ No. L 327, 24.11.06, p.1. Back

14   The International Science and Technology Centre (ISTC) in Moscow deals with the employment and redirection of former weapons scientists from Russia, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan and Tajikistan. It is operated jointly with the beneficiary states and the EU, US, Canada, Japan, Korea and Norway.  Back

15   The Science and Technology Centre of Ukraine (STCU) in Kiev deals with the employment and redirection of former weapons scientists from Ukraine, Azerbaijan, Georgia, Moldova and Uzbekistan. It is operated jointly with the beneficiary states and the EU, US and Canada. Back


 
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