Developing countries seeking to introduce nuclear power are gaining improved access to international financing as major development finance institutions begin to ease long-standing restrictions on funding nuclear energy projects, Director General of the International Atomic Energy Agency (IAEA), Rafael Mariano Grossi, has said.
Speaking at a press briefing in Vienna at the end of a week-long training programme for journalists from both developed and developing countries, Mr. Grossi said one of the biggest obstacles facing countries interested in nuclear energy has traditionally been the lack of access to affordable international financing.
According to him, the challenge was not necessarily due to technical limitations but stemmed largely from policy restrictions and perceptions surrounding nuclear power.
“One missing piece, a very important missing piece in nuclear, was the lack of international finance,” he said.
Mr. Grossi noted that for many years major international financial institutions remained reluctant to support nuclear energy projects, limiting funding opportunities for countries seeking to diversify their energy mix through nuclear power.
However, he said sustained engagement by the IAEA with global development finance institutions has helped trigger significant changes in the sector.
The IAEA chief revealed that discussions initiated several years ago with the leadership of the World Bank have resulted in a new partnership between the two institutions, supported by additional agreements reached in Paris last year.
As a result, the World Bank is now better positioned to support financing for nuclear-related projects, a development Mr. Grossi described as a major breakthrough for countries exploring nuclear energy as part of their long-term energy strategies.
He explained that the shift is already generating momentum among other multilateral financial institutions around the world.
According to him, the IAEA has established cooperation agreements with several regional development banks, including the Development Bank of Latin America (CAF), the Inter-American Development Bank and the Asian Development Bank.
He added that discussions are also ongoing with the African Development Bank as efforts continue to expand financing options for nuclear energy projects across developing regions.
Mr. Grossi stressed that the involvement of multilateral development finance institutions goes beyond providing capital and plays a critical role in reducing investment risk and attracting private sector participation.
“Even private investors will not invest when they do not see international finance institutions and insurers getting into a project,” he explained.
The Director General said the changing landscape is creating a more supportive environment in which governments, financial institutions and technical agencies can work together to advance responsible nuclear energy development.
He noted that under the emerging financing framework, countries planning to develop nuclear infrastructure, including Small Modular Reactors (SMRs), can seek funding from international lenders while relying on the IAEA for independent technical assessments.
According to him, the agency’s role is to provide expert guidance on safety, security and non-proliferation standards to ensure that projects meet international requirements.
“When a country goes to the World Bank and says we would like to introduce an SMR in five or six years, then the World Bank comes to us and asks what we think in terms of safety, security and non-proliferation,” Mr. Grossi said.
He explained that such collaboration helps financial institutions make informed investment decisions while ensuring nuclear projects are developed responsibly and in line with international best practices.
The IAEA chief indicated that early signs suggest the improved financing environment is already encouraging the development of nuclear energy projects in several parts of the world, including Africa and Europe.
He expressed optimism that stronger cooperation between development finance institutions and international nuclear regulators would accelerate the deployment of cleaner, reliable and low-carbon energy systems.
According to Mr. Grossi, greater access to financing could prove particularly important for developing countries seeking to strengthen energy security, expand electricity generation capacity and support industrial growth while pursuing climate and sustainability objectives.
As more international lenders enter the nuclear energy space, countries exploring nuclear power may find it easier to mobilise the substantial investment required to develop modern energy infrastructure and support long-term economic transformation.
