Asian Development Bank (ADB) President Masato Kanda and International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi have signed a memorandum of understanding (MOU) to strengthen cooperation on the use of nuclear energy in Asia and the Pacific.
The agreement establishes a framework for the two organisations to support countries exploring nuclear power, including the potential of small modular reactors, as part of their efforts to increase energy access and improve energy security. ADB is the first regional development bank to sign such a partnership agreement with the IAEA.
Under the MOU, ADB and IAEA will collaborate to build knowledge and technical capacity across the full nuclear life cycle. Key areas of cooperation include energy planning, the management of nuclear fuel cycles and radioactive waste, and nuclear facilities’ life cycle management. IAEA will also support informed decision-making by providing guidance on safety, security, safeguards, and stakeholder engagement.
“With ADB’s updated energy policy recognising nuclear power as an alternative to fossil fuels for baseload generation, this agreement ensures that developing member countries choosing this path do so with robust safeguards, strong governance, and a clear commitment to sustainability,” said. Kanda. “We are committed to helping the region make informed choices that balance the need for energy access with the imperative of energy security and a sustainable future.”
Kanda emphasised that ADB’s collaboration with the IAEA extends beyond the newly expanded cooperation in the energy sector to include joint efforts on safeguarding ocean health and addressing the region’s escalating microplastics challenge.
Grossi said the agreement marks an important step forward. “As ADB opens the door to financing nuclear power, we will move quickly to identify practical areas of collaboration that respond to rising energy needs of countries across the region,” he said. “ADB’s new direction on nuclear financing and the IAEA’s technical leadership create a powerful combination. Our teams will now begin shaping concrete initiatives that deliver reliable, low-carbon energy and strengthen resilience for millions of people.”
ADB is a leading multilateral development bank supporting growth across Asia and the Pacific. ADB, founded in 1966, uses innovative financial tools and strategic partnerships to build infrastructure. ADB is owned by 69 members,50 from the region.
In a statement ADB said recent changes to its energy policy will allow it to support nuclear power projects for the first time, including financing nuclear energy in developing member countries that opt to include it in their energy mix. However, any support would undergo “rigorous assessments and the highest standards of safety, security, and environmental and social safeguards”.
ADB has also broadened the scope of its energy policy to include methane-management projects and expanded its eligibility criteria for carbon capture, utilisation and storage to cover schemes using depleted oil and gas reservoirs for long-term carbon dioxide storage, further signalling its intention to support a wider toolkit of technologies aimed at decarbonising Asia’s energy systems.
The changes are part of a mandatory scheduled review of the existing energy policy, approved in October 2021, and were informed by extensive consultations with ADB’s stakeholders. In 2024, ADB committed about $3.8bn to energy projects. The bank has also been helping to strengthen the policy and regulatory environments to support stronger private-sector investments and meet the region’s rapidly increasing energy demand.
The agreement with IAEA follows the Agency’s agreement with the World Bank earlier this year and paves the way for other global development institutions to support nuclear power. IAEA lists 37 embarking countries that are considering, planning or are well advanced in introducing nuclear power into their energy mix. More than a third of them are ADB member countries.
