IAEA: Funding for Nuclear Energy Must Be Renewed

During COP 28, 22 countries agreed that in order to respond to climate challenges, energy production from nuclear power must triple by 2050.

The challenge was accepted and clearly shared by the International Atomic Energy Agency (IAEA). It has repeatedly emphasized that abandoning nuclear energy is a mistake, since the contribution it could make to reducing carbon dioxide emissions and, as a result, curbing global warming is enormous.

IAEA Director General Rafael Grossi, in an interview with AFP, on the sidelines of the COP 28 meeting, explained that the main obstacle to a massive increase in the number of nuclear power plants is financing. “There are legal provisions, sometimes they exist in some international lending institutions that exclude nuclear energy,” he said. “I believe that this is completely outdated and does not meet any scientific or technological criteria. I rather think these are past stories. I hope we will see changes in the future.”

Here is an example. The World Bank hasn’t financed these types of projects since 1959, leaving stranded such countries as Brazil, Argentina, and South Africa that would also want to focus on this type of energy. Grossi listed some other countries that would like to make the “nuclear leap,” for example, Morocco, Senegal, Kenya, and the Philippines, but face the same challenges of raising the necessary funds. In addition to the fact that the construction of nuclear power plants is particularly expensive, it also requires investment over a long period of time.

Another topic of discussion is safety: will less developed countries have the necessary means to ensure power plants are protected? “We (IAEA – ed.) exist precisely for this,” explained Grossi. “A country that intends to develop a nuclear program must follow a certain path and have an agreement with our agency, particularly on guarantees. This means that there should basically be no proliferation risks.”

Responding to those who believe such projects are too expensive and therefore delayed for years, the IAEA director cited the example of the UAE: “In 10 years they built four reactors.” There are no problems with financing there.