Nuclear Energy

The World Bank Group approaches nuclear energy with discipline—focused on supporting countries’ informed decision-making where nuclear energy aligns with their long‑term development objectives. In June 2025, the World Bank Group partnered with the International Atomic Energy Agency (IAEA) to strengthen its knowledge base and draw on IAEA standards for nuclear safety, security, and nonproliferation safeguards.

Electricity demand in many developing economies is rising due to population growth, urbanization, and development needs. Nuclear power may contribute to meeting that demand while supporting energy security and managing emissions—provided it can be developed safely, responsibly, and at an acceptable economic cost relative to other options.

That potential applies to both new nuclear energy capacity and the extension of existing plants. For countries that already operate nuclear power plants, extending the life of an existing plant (through safety upgrades, component replacement) can often be cost-effective, preserving reliable and efficient power that would otherwise be lost, while helping countries retain assets and meet energy and development needs. Emerging nuclear technologies, including small modular reactors, may present opportunities in the future and could be particularly relevant for developing countries because of their size. However, they remain at early stages of commercial deployment and require careful consideration in terms of cost, technical readiness, and regulatory maturity.

Where nuclear energy is considered, the World Bank Group’s focus is on long‑term development outcomes. Nuclear energy investments can provide reliable power that supports industry and services over time, generating jobs. At the same time, establishing or expanding a nuclear energy program is a complex, multi‑decade undertaking with significant implications for public finances, institutions, and public trust.  The World Bank Group is responding to client requests for support in three areas.

First, strategy and advisory services. The World Bank Group supports countries in evaluating whether nuclear power is appropriate within their broader energy system and development strategy—alongside renewables and grid capacity—while considering grid readiness, fiscal capacity, and institutional strength.

Second, readiness and foundational conditions.  A credible nuclear energy program requires robust legal and regulatory frameworks, independent regulators, skilled human capital, emergency preparedness, clearly defined resource and waste management strategies for long-term stewardship, and effective safety and security protocols, as well as sustained public confidence. Transparency, public consultation, and institutional credibility are essential prerequisites. The World Bank Group can support countries in implementing best practices for responsible nuclear energy programs.

Third, selective financial engagement. For countries with existing nuclear energy programs, access to financing can be a constraint. Where appropriate, World Bank Group institutions may play complementary roles, consistent with their mandates, policies, and risk frameworks. Any engagement must be economically viable, fiscally responsible, and consistent with debt sustainability and development priorities.

Through its collaboration with the IAEA and coordination with other bilateral and multilateral development partners, the World Bank Group grounds its engagement in internationally recognized expertise and rigorous standards as well as stringent environmental and social frameworks.