Context and Announcement
On September 25, 2025, the International Atomic Energy Agency (IAEA) and the Development Bank of Latin America and the Caribbean (CAF) signed a landmark cooperation agreement to promote nuclear development across the region. The accord establishes a framework for technical assistance, financing, and policy guidance to strengthen nuclear infrastructure. It reflects a growing recognition in Latin America and the Caribbean that nuclear energy can play a significant role in diversifying power generation, ensuring energy security, and advancing decarbonization goals.
Strategic Objectives and Focus Areas
The agreement prioritizes several areas: building robust regulatory and safety frameworks, supporting feasibility studies for new nuclear facilities, and training specialists to expand regional expertise. It also seeks to provide CAF member countries with access to IAEA technical cooperation programs, ensuring that nuclear development aligns with international safety standards. Beyond power generation, the partnership will extend to nuclear applications in medicine, agriculture, and water management—underscoring nuclear technology’s broader contribution to sustainable development.
Implications for Regional Energy Transition
By combining IAEA’s technical leadership with CAF’s financial and institutional reach, the partnership could unlock new pathways for nuclear energy integration in a region still heavily dependent on fossil fuels and hydropower. Countries such as Brazil, Argentina, and Mexico already have nuclear experience, while others are exploring entry-level programs. With global momentum toward cleaner baseload power, this collaboration positions Latin America and the Caribbean to explore nuclear not only as a source of carbon- free electricity but also as a strategic pillar for industrial growth and resilience. Success, however, will hinge on sustained political will, transparent regulatory systems, and public acceptance of nuclear’s role in the regional energy mix.