World Bank, IAEA Forge Historic Pact to Boost Nuclear Energy in Emerging Economies
A historic collaboration has been established between the World Bank Group and the International Atomic Energy Agency (IAEA) to promote nuclear energy development in emerging economies.
This landmark agreement marks the World Bank’s renewed commitment to nuclear power after decades of limited involvement in the sector.
World Bank Group President Ajay Banga and IAEA Director General Rafael Mariano Grossi formalized the partnership through a comprehensive agreement that builds upon collaborative efforts initiated over the past year. The alliance signals a strategic shift in the World Bank’s approach to energy solutions, emphasizing broad access, cost-effectiveness, and reliable power generation while upholding environmental responsibility.
With electricity demand in developing countries projected to more than double by 2035, the World Bank is expanding its energy portfolio to include nuclear technology. This diversification aims to help nations meet development goals while fulfilling climate commitments.
“Jobs need electricity. So do factories, hospitals, schools, and water systems. 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,” said Ajay Banga.
Nuclear technology provides consistent baseload power that enhances grid stability and supports labor-intensive industries such as manufacturing, healthcare, infrastructure, and hospitality. It also creates opportunities for skilled labor and facilitates the integration of intermittent renewable sources by compensating for their variability.
IAEA Director General Rafael Grossi described the new alliance as a “milestone” reflecting evolving global views on nuclear energy.
“This landmark partnership opens the door for other multilateral development banks and private investors to consider nuclear as a viable tool for energy security and sustainable prosperity,” Grossi noted.
The memorandum of understanding outlines collaboration across three key areas:
- Technical Capacity Development: Strengthening the World Bank’s expertise in nuclear safety protocols, security measures, emerging technologies, fuel management, and radioactive waste handling.
- Plant Lifetime Extension: Supporting the safe operational extension of existing nuclear facilities, many of which are nearing their original 40-year design lifespans.
- Advanced Reactor Technologies: Promoting the deployment of Small Modular Reactors (SMRs), which offer greater flexibility, lower costs, and suitability for developing markets.
Currently, 31 countries operate nuclear power facilities, contributing about 9% of global electricity production and nearly 25% of low-carbon energy generation.
More than 30 additional countries—mainly in the developing world—are exploring nuclear energy or working with the IAEA to build the infrastructure required for safe implementation.
The World Bank–IAEA partnership has the potential to accelerate these efforts by addressing technical knowledge gaps, establishing financing mechanisms, and ensuring nuclear development prioritizes safety, security, and environmental sustainability.
