World Bank, IAEA Sign Pact to Promote Safe Nuclear Energy in Developing Countries.
International
The World Bank Group and the International Atomic Energy Agency (IAEA) signed a significant Memorandum of Understanding (MoU) in Paris on June 26, 2025. This partnership aims to help developing countries adopt safe and sustainable nuclear energy solutions, particularly small modular reactors (SMRs), to meet their rising power needs while maintaining safety and climate commitments.
- This is the first time in decades that the World Bank has shown support for nuclear energy. Historically, the institution had distanced itself from financing nuclear projects, but with the growing global demand for clean and reliable baseload power, the Bank has revised its stance. The partnership with the IAEA signals the beginning of a renewed approach toward incorporating nuclear energy into clean development strategies.
- The collaboration will support knowledge sharing, capacity building, and technical guidance for World Bank projects involving nuclear energy. It will also help the World Bank build internal expertise in nuclear safety, radiation protection, fuel cycle planning, and nuclear waste managementāareas where the IAEA has long-standing global leadership.
- A major focus of this agreement is on the development and safe deployment of small modular reactors (SMRs), which are compact, cost-effective nuclear systems suitable for smaller economies. These reactors are especially relevant for nations with limited power infrastructure, as they offer scalable energy without major environmental risks.
Main Point :- (i) This initiative aligns with the broader global climate agenda and comes in the context of commitments made at COP28 to triple nuclear energy capacity by 2050.
(ii) With electricity demand expected to more than double by 2035 in many developing countries, the World Bank is adopting an āall-of-the-aboveā strategy that includes solar, wind, hydro, and now nuclear power to ensure stable energy supplies.
(iii) By lifting its historic restrictions on nuclear financing, the World Bank is also encouraging multilateral institutions and private investors to explore clean nuclear technologies. This move is expected to unlock new funding streams and promote energy security across the Global South, marking a turning point in international climate and development financing.
About International Atomic Energy Agency
Director General : Rafael Mariano Grossi
Headquarters : Vienna, Austria
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