IAEA and World Bank Expand Nuclear Energy Partnership

The IAEA said rising electricity demand is one of the biggest development challenges facing emerging economies.

One year after signing a landmark cooperation agreement, the International Atomic Energy Agency (IAEA) and the World Bank Group (WBG) say their partnership is helping lay the groundwork for greater use of nuclear energy as countries seek reliable and low-carbon electricity to support economic development.

The agreement, signed a year ago, marked the World Bank Group's formal return to engagement with nuclear power after several decades. It also reflected a broader shift in the institution's approach to energy, with greater emphasis on improving electricity access, ensuring affordability and reliability, and reducing emissions through a wider mix of energy sources.

Under the partnership, the IAEA and the World Bank agreed to collaborate in three priority areas. These include strengthening nuclear knowledge within the World Bank to support informed financing decisions, extending the safe operation of existing nuclear power plants, and accelerating the development of small modular reactors (SMRs), which are expected to play an increasingly important role in future energy systems.

Growing electricity demand drives interest in nuclear energy

The IAEA said rising electricity demand is one of the biggest development challenges facing emerging economies. More than one billion people around the world still live without reliable access to electricity, limiting opportunities for economic growth, healthcare, education and industrial development.

According to World Bank estimates, developing economies are expected to account for nearly two-thirds of global electricity demand by 2035. Meeting that demand will require annual investment in power generation to increase from around $280 billion today to $630 billion.

While nuclear energy offers a dependable source of large-scale, low-carbon electricity, financing new projects remains one of the biggest obstacles for many countries. The IAEA believes stronger cooperation with international financial institutions can help address this gap by supporting technical planning and creating conditions that make future investment more feasible.

During the past year, the two organisations have organised technical meetings, workshops and training sessions covering nuclear power, safety standards and financing approaches. IAEA Director General Rafael Mariano Grossi has also briefed senior officials from the World Bank and other multilateral development banks on the role nuclear technologies can play in both energy production and wider development goals.

International financial institutions broaden nuclear cooperation

In January, the IAEA hosted a workshop in Vienna that brought together representatives from several international financial institutions, including the World Bank Group, the European Bank for Reconstruction and Development, the Asian Development Bank (ADB) and the OPEC Fund for International Development.

The discussions focused on identifying ways these organisations could support early-stage nuclear projects before construction decisions are made. Areas examined included feasibility studies for small modular reactors, infrastructure planning, radioactive waste management and policy reforms needed to align national laws with international nuclear safety, security and non-proliferation standards.

Interest in expanding this collaboration has continued to grow. The IAEA noted that several participants supported holding similar regional workshops to help countries better understand financing opportunities and technical requirements for nuclear energy programmes.

The agency has also expanded its partnerships with other development institutions. Agreements signed with the Asian Development Bank and the OPEC Fund in 2025 extended cooperation to include nuclear power as part of broader strategies for sustainable development and energy security. The ADB also updated its energy policy in 2025 to allow support for nuclear power projects, including investment opportunities linked to decarbonisation efforts.

The IAEA said these partnerships demonstrate growing recognition among international financial institutions that nuclear energy can contribute to reliable electricity supplies while supporting climate goals. Through continued collaboration on technical expertise, policy development and capacity building, the agency believes more countries will be better positioned to consider nuclear power as part of their long-term energy transition plans.