World Bank Group and IAEA Forge Landmark Partnership to Power Development with Nuclear Energy

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In a historic move poised to redefine global electrification strategies, the World Bank Group and the International Atomic Energy Agency (IAEA) today formalized a strategic partnership to support the responsible deployment of nuclear energy in developing countries.

The agreement, signed in Paris by World Bank Group President Ajay Banga and IAEA Director General Rafael Mariano Grossi, marks the World Bank Group’s first concrete step in decades toward reengaging with nuclear energy—a powerful source of low-carbon, reliable electricity. It also underscores the rising global recognition of nuclear power’s role in meeting future energy demands while supporting climate goals.

“Jobs need electricity. So do factories, hospitals, schools, and water systems,” said Ajay Banga. “As demand surges—with AI and development alike—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.”

A New Approach to Electrification
The agreement reflects the World Bank Group’s broader electrification agenda—one that balances accessibility, affordability, and reliability with emissions management. With electricity demand in developing countries expected to more than double by 2035, the need for scalable, sustainable power solutions has never been more urgent.
Nuclear energy offers a compelling value proposition:

  • 24/7 baseload power, critical for economic sectors like manufacturing, healthcare, tourism, and infrastructure.
  • The ability to support grid stability and integrate variable renewables like solar and wind.
  • High-skilled job creation and economic stimulus.


The World Bank Group and IAEA will now collaborate in three critical areas under the new Memorandum of Understanding (MoU):
  • Building Knowledge and Capacity:
  • Enhancing understanding across the World Bank Group of key nuclear topics such as safety, security, safeguards, energy planning, fuel cycles, and waste management.
  • Extending Existing Nuclear Assets
  • Supporting countries in safely extending the lifespan of current reactors—many of which are nearing the end of their 40-year design lives. These extensions represent one of the most cost-effective low-carbon energy options available today.
  • Accelerating Small Modular Reactor (SMR) Deployment:
  • SMRs offer flexible deployment, lower upfront costs, and scalability, making them especially suited for emerging economies. Their potential to cleanly and reliably power growth in remote or underserved regions could be transformational.

“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,” said Rafael Grossi. “Together, we can help more people build a better future.”
A Turning Point for Global Nuclear Development
Currently, 31 countries operate nuclear power plants, collectively generating 9% of global electricity and nearly 25% of all low-carbon electricity. More than 30 additional countries, many in the developing world, are either considering or actively planning their entry into the nuclear space—with the IAEA already supporting their infrastructure development.


However, financing remains a key barrier, especially for newer technologies like SMRs. This agreement could be a catalyst for unlocking investments, both public and private.
“SMRs have great potential to cleanly and reliably power progress and fight poverty, but financing remains a roadblock,” added Grossi. “Today’s agreement is a crucial first step to clearing that path.”


What’s Next?
This collaboration sends a clear message: nuclear energy is back on the development agenda. With the IAEA’s technical expertise and the World Bank Group’s global financing capacity, this partnership could significantly accelerate the safe, secure, and sustainable adoption of nuclear power in developing nations.
It’s not just a policy shift—it’s a signal of confidence in nuclear energy’s potential to drive economic development, reduce emissions, and deliver energy equity across the globe.

Contacts:
World Bank Group (London): David Young, +1 (202) 473-4691, dyoung7@worldbankgroup.org
International Atomic Energy Agency (Vienna): Jeffrey Donovan, +43 699 165 22443, j.r.donovan@iaea.org
About the World Bank Group:
The World Bank Group works to create a world free of poverty on a livable planet through financing, knowledge, and partnerships. It includes the IBRD, IDA, IFC, MIGA, and ICSID. Learn more at www.worldbank.org.

About the IAEA:
The IAEA promotes the peaceful use of nuclear energy and ensures it is not used for military purposes. It supports member states in establishing nuclear safety, security, and safeguards frameworks and applies verification measures globally. Learn more at www.iaea.org


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