Paris, France — June 27, 2025 — In a landmark move to bolster clean energy access in developing nations, the World Bank and the International Atomic Energy Agency (IAEA) have announced a strategic partnership aimed at promoting the safe development and financing of nuclear power. The agreement, signed in Paris by World Bank President Ajay Banga and IAEA Director General Rafael Grossi, signifies the World Bank’s renewed commitment to nuclear energy as part of its broader development strategy.
This collaboration is set to enhance the World Bank Group’s expertise in nuclear safety, energy planning, and waste management. A key focus will be on extending the operational life of existing nuclear reactors and fostering the adoption of small modular reactors (SMRs), which are considered cost-effective and clean energy solutions suitable for developing economies.
President Banga emphasized the critical role of reliable electricity in driving economic growth, particularly in sectors such as infrastructure, healthcare, and manufacturing. “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,” Banga stated. He highlighted nuclear energy’s potential in meeting these surging energy demands.
Director General Grossi described the agreement as a significant step toward broader acceptance of nuclear power. He noted that this partnership could pave the way for increased investment from multilateral banks and private sectors in nuclear technologies, particularly SMRs. Grossi called the partnership a “crucial first step” in clearing the financing path for SMR technology, which has the potential to cleanly power developing economies.
The World Bank had ceased funding nuclear power projects in 2013. However, under Banga’s leadership, the bank has shifted towards an “all of the above” energy strategy to meet the growing electricity needs of developing countries. This approach includes a mix of energy sources such as solar, wind, hydro, gas, and nuclear, while continuing to support the retirement of coal plants.
The partnership with the IAEA is expected to facilitate the development of robust safety and regulatory frameworks essential for the deployment of nuclear energy projects. This includes advising on nuclear non-proliferation safeguards, security measures, and regulatory standards. The collaboration aims to ensure that nuclear energy projects in developing countries adhere to the highest safety standards.
The adoption of SMRs is particularly significant for developing nations. These reactors offer a scalable and flexible approach to nuclear power, with lower upfront costs and the ability to be deployed in remote locations. Their modular nature allows for incremental capacity additions, aligning with the energy needs and financial capabilities of developing economies.
This strategic partnership marks a pivotal moment in the global energy landscape, reflecting a growing consensus on the role of nuclear energy in achieving sustainable development goals. By combining the financial resources of the World Bank with the technical expertise of the IAEA, the initiative aims to provide developing countries with access to clean, reliable, and safe nuclear energy solutions.
