Access to Nuclear Energy Financing is improving for developing countries – IAEA Chief

Speaking at a press briefing following a week-long training programme for journalists from developed and developing countries, Grossi said one of the biggest barriers to nuclear energy development had been limited access to financing rather than technical constraints.

“One missing piece, a very important missing piece in nuclear, was the lack of international finance,” he stated.

According to the IAEA chief, major international financial institutions have traditionally been reluctant to support nuclear energy projects, restricting access to capital for countries interested in adopting the technology.

Grossi explained that sustained engagement between the IAEA and international development finance institutions has helped change perceptions and create new financing opportunities for nuclear projects.

He cited discussions held with the leadership of the World Bank several years ago, which eventually resulted in a new partnership between the two organisations and a subsequent agreement signed in Paris last year.

As a result of these efforts, the World Bank is now positioned to support financing for nuclear-related projects, a development Grossi described as a major breakthrough for countries exploring nuclear power as part of their energy mix.

He noted that the shift has also encouraged other regional financial institutions to become more involved in the sector.

According to him, cooperation agreements have already been established with institutions such as the Development Bank of Latin America, the Inter-American Development Bank, and the Asian Development Bank, while discussions continue with the African Development Bank.

Grossi emphasized that the participation of multilateral financial institutions is crucial not only for securing funding but also for reducing investment risks associated with large-scale energy projects.

“Even private investors will not invest when they do not see international finance institutions and insurers getting into a project,” he said.

He described the evolving financing landscape as creating a more supportive environment where governments, financial institutions, and technical agencies can work together to facilitate the safe and responsible deployment of nuclear energy.

Under the emerging framework, countries interested in developing nuclear infrastructure, including Small Modular Reactors (SMRs), can seek financing from development institutions while relying on the IAEA for independent assessments on safety, security, and non-proliferation standards.

“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,” Grossi explained.

He noted that early indications suggest the improved financing environment is already encouraging the development of nuclear energy projects in several regions, including Africa and Europe.

Grossi expressed optimism that closer collaboration between international financial institutions and nuclear regulatory bodies will accelerate access to cleaner, more reliable, and sustainable energy systems for countries pursuing long-term energy transformation goals.