World Bank, IAEA Partner to Boost Nuclear Energy in Developing Nations

The World Bank Group and the International Atomic Energy Agency (IAEA) have entered into a formal partnership to support the safe, secure, and responsible deployment of nuclear energy in developing nations.

The agreement, signed by World Bank Group President Ajay Banga and IAEA Director General Rafael Mariano Grossi, builds on a series of engagements between both institutions over the past year. It also represents the World Bank’s first definitive step toward reengaging with nuclear energy in decades, signaling a major policy shift.

According to a statement by the World Bank, the collaboration reflects a renewed and expanded approach to electrification—one that emphasizes accessibility, affordability, and reliability, while prioritizing low-carbon development and responsible emissions management.

As electricity demand across the Global South is expected to more than double by 2035, the World Bank noted that nuclear power would be part of a broader suite of energy solutions to help developing countries achieve their economic and climate goals.

“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 Banga.

Nuclear energy, as highlighted by the World Bank and IAEA, provides a stable source of baseload electricity that supports critical sectors such as manufacturing, healthcare, infrastructure, and tourism. It also helps create high-skilled employment opportunities and supports the integration of intermittent renewable energy sources by enhancing grid stability.

IAEA Director General Rafael Grossi hailed the agreement as a “milestone,” calling it a significant shift in the global approach to 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 said.

The Memorandum of Understanding (MoU) signed by both institutions outlines three core areas of collaboration. First is knowledge building, where the IAEA will support the World Bank’s capacity in understanding nuclear safety, new technologies, fuel cycles, and waste management. Second is the support for extending the lifespan of existing nuclear reactors, many of which are approaching the end of their initial 40-year design period. Lastly, the two organizations will focus on advancing Small Modular Reactors (SMRs), a newer class of nuclear technology that is more flexible, cost-effective, and well-suited for developing countries.

This agreement marks a significant development in the global energy landscape and signals an evolving openness toward nuclear energy as a viable and sustainable power source for emerging economies.