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China has become the latest country to suspend its nuclear programme in response to the ongoing crisis at the Fukushima nuclear plant, announcing that new projects will not be approved until improved safety rules are ready.

China has 25 new plants under construction as part of plans to expand its nuclear capacity from 10.8GW to 86GW by 2020.

But the State Council issued a statement today confirming it would indefinitely suspend safety approvals for new plants until new safety rules are in place, and step up inspections on existing plants. However, it gave no indication on when improved safety rules would be in place.

India and South Korea have already put the brakes on new nuclear build programmes for safety reasons, while in Europe, Switzerland and Germany are reassessing their nuclear plans as the situation continues to worsen in Japan.

This morning, workers were evacuated after radiation levels became too high for them to continue their efforts to cool the plant's fuel rods. All six of the plant's reactors are now reportedly under strain following a third blast in four days and a fire at the number four reactor.

Meanwhile, the impact of Germany's decision to shut down seven of its oldest reactors is continuing to be felt across the EU's carbon martket. The knock-on effect of the closure was to send carbon permit prices spiralling to €17.25 (£14.96) a tonne, their highest price in almost two years, as investors predicted fossil fuels will fill the resulting energy gap.

Germany will also now have to decide whether it will return to its original programme mandating all of its 17 of its reactors to be shut down by 2021 or continue with the decision made last autumn to extend the lives of the younger reactors in its nuclear fleet.

Last year nuclear power supplied 23 per cent of Germany's power, with renewables contributing 17 per cent, and German renewables lobby group BEE today insisted the industry could meet almost half of Germany's power requirements by 2020, limiting the need for extending the nuclear programme.

"Renewables could be ready to provide 47 per cent of German power supply up to 2020," the group said in a statement. "This way they would not just compensate for the nuclear withdrawal, but in addition offer affordable and sustainable power."

BEE said that expanding the sector and building plants combining different low carbon technologies would overcome the potential volatility of renewable energy supply.

However, it warned that plans to ramp up wind, solar and biomass capacity would be held back by up to 16 years if nuclear operations were continued.