The Media Room

2011/57 (c)

Backgrounder

Nuclear Safety and the Divestiture of AECL’s CANDU Reactor Division

The Government of Canada’s role in maintaining safety, security and environmental stewardship in all aspects of the nuclear industry is not affected by the sale of the CANDU Reactor Division of Atomic Energy of Canada Limited (AECL). 

Over the years, the Government of Canada has established a comprehensive legislative and regulatory framework relating to nuclear power that focuses on protecting health, safety, security and the environment and is among the most stringent regimes for nuclear safety in the world. Key legislation includes:

  • Nuclear Safety and Control Act (regulation, including export controls)
  • Nuclear Energy Act (nuclear research and development)
  • Nuclear Fuel Waste Act (waste)
  • Nuclear Liability Act (liability)
  • Export and Import Control Act (export and import permits)

In particular, Canada’s nuclear regulator, the Canadian Nuclear Safety Commission (CNSC), will continue to independently oversee Canada’s entire nuclear industry, including all operations of the new CANDU Energy (CANDU), under SNC-Lavalin, while discharging its mandate to protect the health, safety and security of Canadians and the environment. 

The CNSC and the Department of Foreign Affairs and International Trade (DFAIT) have reviewed the CANDU transaction documents and assessed the potential risks of this transaction from both a regulatory (CNSC) and non-proliferation (DFAIT) perspective. The CNSC has concluded that the transaction represents “no incremental risk from a regulatory perspective” and, based upon its review of the transaction agreements, DFAIT has concluded that the transaction is “not inconsistent with Canada’s international nuclear non-proliferation obligations.”

As part of this transaction, AECL continues to own the CANDU intellectual property, which will be licensed to CANDU Energy for the purposes of conducting the CANDU business. As a user of the technology, CANDU Energy will be subject to all existing laws and Canada’s regulatory framework for nuclear projects, both domestic and foreign, and will thus be held to the same high standards of safety and security as AECL and all other players in Canada’s nuclear industry. 

Accordingly, the existing Canadian non-proliferation regime and related obligations will continue to address any risk related to a transfer of intellectual property related to CANDU technology once licensed to CANDU Energy. Further, as the owner of the CANDU intellectual property, AECL and the Government of Canada will retain the right of prior consent to any sub-licence by CANDU Energy, as well as the right to terminate the licence for failure to comply in any material respect with the foregoing laws.

Julie Di Mambro
Press Secretary
Office of the Minister
Natural Resources Canada
Ottawa
613-996-2007

or

Media Relations
Natural Resources Canada
Ottawa
613-992-4447

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.