Rafael Mariano Grossi, Director General of the International Atomic Energy Agency (IAEA), has urged the World Bank and other multinational development banks (MDBs) to initiate financing for new nuclear energy projects.
This call for action is part of global efforts to achieve substantial and rapid decarbonization in the energy sector.
Nuclear Energy’s Role in Meeting Climate Goals
In his address to World Bank board members in Washington last week, Grossi emphasized the need for both technical and financial support for countries seeking to incorporate nuclear energy into their energy mix.
He highlighted the IAEA’s role in providing technical expertise throughout the nuclear development process, from establishing infrastructure to ensuring safety, security, and sustainability. However, Grossi pointed out that financing remains a significant obstacle, particularly for developing countries.
Private Sector and MDBs: A Collaborative Approach to Financing
While acknowledging the increasing contribution of the private sector in financing nuclear projects, Grossi stressed the importance of MDBs like the World Bank in advancing sustainable development.
He emphasized their role in assessing project bankability and providing lending at affordable rates, thereby facilitating nuclear energy adoption in countries with limited financial resources.
COP28 Pledge and the Need for Increased Investment
Grossi referenced the pledge made at COP28, where over 20 countries committed to tripling nuclear energy capacity. This pledge included a call for shareholders of MDBs and regional development banks to consider incorporating nuclear energy into their lending policies and actively support nuclear power projects within their mandates.
Nuclear Capacity Expansion and Investment Requirements
The International Energy Agency (IEA) projects that nuclear energy capacity must more than double by 2050 to meet climate targets. The IAEA estimates that achieving this goal would necessitate more than doubling annual investment in nuclear power, reaching USD100 billion.
IAEA’s Readiness to Provide Technical Assistance
Grossi reaffirmed the IAEA’s commitment to providing technical assistance to MDBs in various aspects of nuclear infrastructure development, including safety, security, and safeguards. He highlighted the agency’s expertise in supporting the safe and responsible use of nuclear energy.
The IAEA identifies approximately 30 countries currently considering or embarking on nuclear power programs, with two-thirds of them located in the developing world. Financing remains a major hurdle for many of these countries, hindering their efforts to diversify their energy sources and reduce carbon emissions.