The Asian Development Bank has revised its energy policy to allow direct support for nuclear power, signalling a notable shift in how multilateral lenders approach baseload generation in emerging Asian economies, World Nuclear News (WNN) reports. The move opens the door for financing in countries that opt to integrate nuclear technology into their long-term energy strategies, reflecting a broader reassessment of the role atomic power could play in meeting rising electricity demand while curbing dependence on fossil fuels.

Established in 1966 and backed by 69 member states, the bank channelled $3.8bn into energy projects in 2024 and positions the policy change as part of its commitment to fostering resilient and sustainable growth across the region. According to WNN, the revision is accompanied by a new cooperation agreement with the International Atomic Energy Agency, intended to help countries evaluate nuclear options, strengthen governance frameworks and build the institutional capacity required to manage complex technologies throughout their full life cycle.

The partnership will focus on areas such as energy-sector planning, fuel-cycle management, radioactive-waste oversight and the long-term stewardship of nuclear facilities. The IAEA will also provide guidance on safety, security and public engagement — all prerequisites for informed decision-making. The report adds that discussions are expected to explore potential joint initiatives, including the deployment of small modular reactors, which several governments in the region are assessing.

The ADB’s shift follows a similar step by the World Bank earlier in the year, adding momentum to the view that nuclear energy may serve as a credible low-carbon alternative in markets seeking both reliability and emissions reductions. The IAEA notes that 37 countries are currently considering or preparing to adopt nuclear power, underlining the scale of prospective demand for finance, expertise and regulatory support.

In parallel, the ADB has 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.