IAEA and International Financial Institutions Move Nuclear Partnership From Diplomacy to Delivery

The workshop brought together senior experts not only from the World Bank Group but also from other major financial institutions, including the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB) and the OPEC Fund for International Development. Participants addressed challenges including radioactive waste management, emergency preparedness and response, and the institutional readiness that investors require before considering support for large-scale nuclear infrastructure. 

“Building on recent agreements with international financial institutions, our priority now is delivery,” said IAEA Director General Rafael Mariano Grossi. “It’s been significant to have senior experts from these organizations join us here at the IAEA to take this cooperation forward and support countries on nuclear power and non-power applications, from health and food security to water and environmental protection.” 

In Paris last June, Director General Grossi and World Bank Group President Ajay Banga signed a memorandum of understanding to deepen cooperation in three areas: building nuclear knowledge inside the WBG, supporting long-term operation of existing nuclear power plants, and advancing small modular reactors, or SMRs. The agreement marked the group’s first formal reengagement with nuclear power in decades — and signalled a shift that other international financial institutions have begun to follow. 

Since then, the IAEA has concluded cooperation arrangements with additional MBDs, including the Asian Development Bank and the OPEC Fund, reflecting a widening institutional alignment around nuclear energy’s potential role in producing clean, reliable electricity – especially in economies seeking sustainable growth that limits greenhouse gas emissions. 

“The World Bank Group is taking a new approach to provide countries with more options to meet their power needs by re-entering the nuclear energy space,” said Lauren Culver, Senior Energy Specialist at the WBG. “This workshop was an important opportunity to deepen our cooperation with the IAEA and establish our ability to finance nuclear projects aligned with IAEA standards on safety, security, regulatory frameworks and non-proliferation safeguards.” 

One theme at the workshop was the legal dimension: how policy-based financing might support adoption of international treaties and the incorporation of nuclear safety, security and safeguards commitments into national law. 

Other sessions focused on how development banks might finance the technical groundwork often needed before serious investment decisions are possible. These include feasibility studies for SMRs, radioactive waste disposal planning and early-stage infrastructure development. Front-end fuel cycle considerations, including uranium production cycle review missions, were discussed, as were research reactors as entry points for nuclear capacity building. 

The meetings also underscored the growing emphasis on environmental and social standards. “Environmental and social standards are not technicalities — they are the architecture of responsible investment. It was encouraging to engage with IAEA and fellow financial institutions committed to getting them right, especially in the field of nuclear energy safety,” said Gerardo Parco, Acting Director of Sustainability and Climate Change at the OPEC Fund for International Development. 

“This workshop crystallized how EBRD can harness the IAEA’s expertise to enable countries to advance nuclear energy safely, sustainably and with investor confidence,” said Debbie Cousins, Director of Operations in the Environment & Sustainability Department at the European Bank for Reconstruction and Development. “By utilizing the IAEA’s 30+ years of experience across 170 Member States we can build a robust approach to considering ESG risks that benefits operators, regulators, host countries and investors alike. EBRD looks forward to advancing this partnership as a model for how multilateral development banks can responsibly support nuclear energy.” 

The workshop marked the start of a more coordinated phase of cooperation, with interest in replicating the format regionally as demand for nuclear options grows in parts of the developing world. 

“The workshop offered invaluable insights on nuclear safety, waste management, emergency response and related areas,” said Kee-Yung Nam, Principal Energy Economist at the Asian Development Bank. “Given its relevance and usefulness, organizing a similar workshop for the Asian Development Bank would be highly beneficial in strengthening nuclear power program in Asia and the Pacific.”