1. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Challenge of Transparency in Nuclear Security Dr Robert Floyd Director General Australian Safeguards and Non-Proliferation Office Department of Foreign Affairs and Trade Senior Regulators Meeting IAEA, Vienna September 2012

2. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office 2 1.What is transparency and accountability? 2.Benefits/Limitations as applied to Safeguards, Safety and Security 3.Options for enhancing transparency and accountability Outline

3. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office 3 Many authors calling for more transparency and accountability in nuclear security in wake of nuclear security summits The “court of public opinion” affected by nuclear incidents and accidents Operational problems with full openness and transparency of nuclear security Background

4. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Transparency, Openness and Accountability Transparency: a state of openness, communication and accountability that enhances public and international confidence and understanding. Openness: a subset of transparency - the provision of information and/or access Accountability: confirming actions taken relating to requirements and/or other standards. Assurance: the outcome of transparency/accountability

5. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Scaled Transparency and Openness

6. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Scaled Transparency and Openness

7. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Scaled Transparency and Openness

8. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Scaled Transparency and Openness

9. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Scaled Transparency and Openness Transparency and Openness are not absolutes

10. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Why Transparency and Accountability Promotes a learning community –Share experiences and learn among peers Confidence building measure –Internal and external assurance Public Between States Legal minimum is not enough Consequences of poor nuclear safety, safeguards or security are global

11. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Risks of lack of accountability Internal Allows complacency and masks underperformance Lack of incentive to improve −Repeated mistakes −Loss of opportunity to be more effective and efficient External Lack of international confidence Limits credibility

12. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office 12 SafeguardsSecuritySafety Rules Treaties Conventions Standards Transparency Accountability & Assurance

13. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Transparency and Accountability: Nuclear Safeguards Respect legal requirements and safeguards obligations (i.e. NPT and safeguards agreements) IAEA conclusions regarding absence of undeclared activities and material Additional Protocol – Additional Openness and Transparency Public reporting Transparency by MS and the IAEA provides mutual benefits

14. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Transparency and Accountability: Nuclear Safety Few requirements in Safety Convention but contains peer review Voluntary Mechanisms (OSART) operational for some 30 years Enhancement following nuclear accidents Nuclear Safety culture most open of the 3Ss “Prime responsibility for safety rests with the Licensee” (Safety fundamentals)

15. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Transparency and Accountability: Nuclear Security Few (detailed) legal requirements Confidentiality is a fundamental principle of nuclear security “Responsibility rests with the State” −State accountability Limited history of openness or peer review − IPPAS missions and bilateral arrangements Is there a case for greater transparency and accountability in nuclear security?

16. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office How to cope with limitations Can regulators report on poor security performance without revealing vulnerabilities, even after they are rectified? −Limit the details of a vulnerability −Broadened assessment (e.g. above/below expectations) −Reporting on security culture −Regulator accountability Need to translate internal accountability to external assurance

17. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Transparency and Accountability: Options Targeted Transparency −Publish Regulations, Programs −Don’t reveal specific vulnerabilities Measured Openness −Peer review (e.g. IPPAS) −Use of trusted partners −Report generalised outcomes −Multiple layers −Internal and international

18. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Transparency and Accountability: Options Bilateral and Regional Collaboration Internationalisation of nuclear activities Incentives for transparency NTI Index - measured nuclear security assurance without revealing specific security measures

19. Australian Government ─────────────────────────────── Australian Safeguards and Non-Proliferation Office Conclusions Nuclear security has less transparency and accountability than safeguards or safety Legitimate limitations to transparency and accountability on nuclear security Limited transparency and accountability leads to limited public and international assurance Transparency is not an absolute Can we do more with targeted transparency and measured openness?