World Bank, IAEA partner to fund nuclear energy
The World Bank and the International Atomic Energy Agency signed an agreement last week to cooperate on the construction and financing of advanced nuclear projects in developing countries, marking the first partnership since the bank ended its ban on funding for nuclear energy projects.
Background: The World Bank, which lends funds to bolster countries’ infrastructure activities, stopped financing nuclear energy projects in 2013. Its board overturned the ban earlier this month, citing the need to address rising energy demand across the globe.
“For the first time in decades, the World Bank Group will begin to reenter the nuclear energy space. . . . We will support efforts to extend the life of existing reactors in countries that already have them, and help support grid upgrades and related infrastructure,” World Bank Group president Ajay Banga said in an email to staff.
According to the IAEA, more than 30 countries—most of which are in the developing world—either are considering or are embarking on new nuclear power projects.
Areas of cooperation: The agreement, signed June 26, highlights three key areas of cooperation between the World Bank and IAEA.
- Expand the World Bank’s technical expertise surrounding nuclear safety, safeguards, fuel cycles, regulatory frameworks, and waste management.
- Support countries in extending the lifespans of existing nuclear reactors and power plants.
- Expedite the deployment of small modular reactors and other advanced technologies in developing countries.
Quotes: “We must help countries deliver reliable, affordable power. 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,” Banga said about World Bank’s collaboration with the IAEA.
IAEA director general Rafael Mariano Grossi added, “This landmark partnership, yet another sign of the world’s return to realism on nuclear power, opens the door for other multilateral development banks and private investors to consider nuclear as a viable tool for energy security and sustainable prosperity.”
At the public announcement of the organizations’ collaboration, Grossi said, “Many, many clients in the Global South, in developing countries, even in industrialized economies, need some financing support. And now, they will know they can come to the World Bank . . . . We can look at concrete projects, see the feasibility of them, and work together.”
French Hill, chair of the U.S. House Committee on Financial Services, released a statement praising the partnership. “For years, I’ve advocated for the importance of nuclear being included in an ‘all-of-the-above’ energy strategy, and I applaud the World Bank Group and IAEA for creating this important partnership. Unlocking the potential of nuclear energy in developing countries is essential to meeting today’s global energy needs.”
