The World Bank Group and the International Atomic Energy Agency (IAEA) have sealed an agreement today to work together to support the safe, secure, and responsible use of nuclear energy in developing countries.
The partnership agreement, signed by World Bank Group President Ajay Banga and IAEA Director General Rafael Mariano Grossi, formalizes multiple engagements between the two institutions over the last year and marks the World Bank Group’s first concrete step to reengage with nuclear power in decades.
According to a statement from the World Bank, the agreement also reflects a new, broader approach by the Group to electrification, one that prioritizes accessibility, affordability, and reliability, while managing emissions responsibly.
Addressing surging energy demand in the Global South
With electricity demand in developing countries expected to more than double by 2035, the World Bank says it is embracing a broader range of energy options, including nuclear, to help countries meet their energy needs in ways that align with national development goals and 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 energy is a stable source of baseload electricity that enhances grid reliability and supports job-creating sectors like manufacturing, healthcare, infrastructure, and tourism. It also provides high-skilled employment and facilitates greater integration of renewable energy sources by balancing grid fluctuations.
Director General of the IAEA, Rafael Grossi, described the new partnership as a “milestone” that reflects a shift in global thinking 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.
Key areas of collaboration
Under the newly signed memorandum of understanding (MoU), the IAEA and the World Bank Group will collaborate in three major areas:
- Knowledge building: Enhancing the World Bank’s technical understanding of nuclear safety, safeguards, new technologies, fuel cycles, and waste management.
- Reactor life extension: Supporting the safe extension of existing nuclear plants, many of which are nearing the end of their 40-year design lifespan.
- Small Modular Reactors (SMRs): Accelerating the adoption of SMRs, which are more flexible and affordable, and better suited for use in developing economies.
What you should know
According to the World Bank, 31 countries currently operate nuclear power plants, generating around 9% of global electricity and nearly 25% of all low-carbon power.
Over 30 additional countries—most of them in the developing world—are considering nuclear energy or are working with the IAEA to develop the necessary infrastructure for safe deployment.
The World Bank–IAEA partnership could help fast-track those ambitions by bridging technical knowledge gaps, facilitating financing pathways, and ensuring that nuclear adoption prioritizes safety, security, and sustainability.
