World Bank and IAEA Launch Nuclear Financing Framework
The World Bank–IAEA agreement signals a major shift: global financial institutions are recognizing nuclear’s role in decarbonizing industrial economies. For Asia, MDB-backed SMR financing could become a game-changer in aligning energy policy with GDP growth.
A landmark agreement between the World Bank and the International Atomic Energy Agency (IAEA) marks a significant shift in global financing norms, with multilateral institutions re-engaging with nuclear power as a tool for clean industrial growth.
Announced June 26, the partnership outlines collaboration on nuclear knowledge development, plant life extension, and SMR deployment. It is the World Bank’s first nuclear-related initiative in decades and could set a precedent for broader MDB involvement. President Ajay Banga emphasized the importance of continuous, low-carbon power to support job-intensive sectors. IAEA Director General Rafael Mariano Grossi called the agreement a “landmark” that lowers risk barriers and broadens the path for private investment.
While the Asian Development Bank and JBIC have not made new nuclear financing announcements this quarter, both institutions have increased engagement with low-carbon infrastructure strategies. JBIC’s existing mandate supports Japanese firms involved in power projects, and ADB’s 2021-2030 Energy Policy includes provisions for clean technology investment, potentially encompassing advanced nuclear.
This shift could provide critical support for SMR initiatives in Southeast Asia, where energy reliability is increasingly central to economic competitiveness. MDB participation not only reduces financing risk but also lends credibility to national programs aiming to deploy SMRs and modernize grids.
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