The World Bank Group (WBG) and the International Atomic Energy Agency (IAEA) have agreed to work together to support the safe, secure and responsible use of nuclear energy in developing countries. The partnership agreement was signed by WBG President Ajay Banga and IAEA Director General Rafael Mariano Grossi. It formalises multiple engagements undertaken in the past year, and marks WBG’s first concrete step to reengage with nuclear power after ending its ban on funding for nuclear earlier in June.
“Jobs need electricity. So do factories, hospitals, schools, and water systems. And as demand surges – with AI and development alike – we must help countries deliver reliable, affordable power,” said Banga. “That’s why we’re embracing nuclear energy as part of the solution – and reembracing it as part of the mix the World Bank Group can offer developing countries to achieve their ambitions. Importantly, nuclear delivers baseload power, which is essential to building modern economies.”
He added that the partnership with IAEA marks an important step. “Together, we’ll deepen our expertise, support countries that choose nuclear, and ensure that safety, security, and sustainability guide every step forward.”
Grossi said the agreement was the result of a year of joint work. “This landmark partnership, yet another sign of the world’s return to realism on nuclear power, opens the door for other multilateral development banks and private investors to consider nuclear as a viable tool for energy security and sustainable prosperity. Together, we can help more people build a better future.”
Under the agreement, IAEA and WBG will work together in three key areas, to:
- Build knowledge related to the nuclear field: Expand the WBG’s understanding of nuclear safety, security, safeguards, energy planning, new technologies, fuel cycles, reactor lifecycles, and waste management.
- Extend the lifespan of existing NPPs: Support developing countries in safely extending the life of existing nuclear reactors as many near the end of their original 40-year design life.
- Advance SMRs: Accelerate the development of small modular reactors (SMRs), which offer flexible deployment, lower upfront costs, and potential for wide adoption in developing economies.
“SMRs have great potential to cleanly and reliably power progress and fight poverty, but financing remains a roadblock,” Grossi said. “Today’s agreement is a crucial first step to clearing that path.”
