(Reuters) -The World Bank and the United Nations nuclear watchdog on Thursday launched a new agreement to cooperate on the safe development and financing of nuclear power for developing countries, including extending the life of existing reactors.
World Bank President Ajay Banga and International Atomic Energy Agency Director General Rafael Grossi were due to sign the memorandum of understanding in Paris that is part of the bank's return to nuclear energy financing.
The IAEA and the World Bank said in a statement that they agreed to work together to build knowledge in the nuclear field, including expanding the World Bank Group's understanding of nuclear safety, security, energy planning, and waste management.
The institutions also said they would work together to extend the lifespan of existing nuclear power plants as a cost-effective source of low-carbon power and accelerate the development of small modular reactors, saying that they have potential for widespread adoption in developing countries.
In prepared remarks, Banga said that reliable baseload power provided by nuclear energy was essential for job-generating sectors such as infrastructure, agribusiness, health care, tourism and manufacturing.
"Jobs need electricity. So do factories, hospitals, schools, and water systems. And as demand surges — with AI and development alike — we must help countries deliver reliable, affordable power," Banga said.
"That's why we're embracing nuclear energy as part of the solution — and re-embracing it as part of the mix the World Bank Group can offer developing countries to achieve their ambitions."
Grossi said that the "landmark" agreement was "a sign of the world's return to realism on nuclear power" and would open the door for other multilateral development banks and private investors to consider nuclear power as a viable tool for energy security.
He called the partnership a "crucial first step" to clearing the financing path for small modular reactor technology, which has the potential to cleanly power developing economies.
(Reporting by David Lawder; Editing by Saad Sayeed)
