IAEA Shutdown Soon Due to Japan Nuclear Water and Australia Submarines?

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IAEA Shutdown Soon Due to Japan Nuclear Water and Australia Submarines?

International Atomic Energy Agency (IAEA) at Risk of Shutdown Due to Unpaid Dues by China and the U.S.

The International Atomic Energy Agency (IAEA) has the responsibility of ensuring that nuclear fuel used for power generation is not diverted for military purposes, and it also oversees global nuclear safety standards.

However, due to non-payment of dues by the United States, China, and some other countries, the IAEA may soon lack the funds to support the monitoring of global nuclear inventories.

This United Nations nuclear watchdog agency has become another casualty of the ongoing tensions between the United States and China.

A draft document seen by Bloomberg reveals that the IAEA faces a budget shortfall of approximately 220 million euros out of its 650 million euros budget for this year, with the United States and China being its largest debtor nations.

The IAEA’s mandate includes ensuring that nuclear fuel used for power generation is not diverted for military purposes and regulating global nuclear safety standards. It also serves as a channel for developing countries to access nuclear technology.

As the largest donors to the IAEA, the United States and China together contribute 137 million euros in dues.

However, their increasing disagreements on issues such as the release of treated water from the Fukushima nuclear power plant in Japan and Australia’s plans to purchase nuclear submarines are straining their contributions.

Traditionally, countries influence the decisions of United Nations agencies by squeezing their budgets.

IAEA Shutdown Soon Due to Japan Nuclear Water and Australia Submarines?

Image source: iaea official website

IAEA Shutdown Soon Due to Japan Nuclear Water and Australia Submarines?

Both the U.S. and Chinese delegations to the IAEA have declined to comment on Bloomberg’s report. In a diplomatic note released by the Chinese government on Wednesday, September 13th, it was suggested that Western countries’ control over the IAEA Board of Governors could lead to the privatization of the agency.

Li Song, China’s permanent representative to the IAEA, wrote on the agency’s website, “The ‘independent role’ of the Secretariat in fulfilling its duties must be understood and supported by member states; this is a rule and common sense for the effective operation of any international organization.”

Although the amounts owed by the U.S. and China are not large (the U.S. owes 77 million euros, and China owes 60 million euros), the funding gap will impact the work of IAEA inspectors.

IAEA Director-General Rafael Grossi stated on Monday, September 11th, “If we do not recover these outstanding dues, we may have to shut down within a month. It is now a time for some major countries to fulfill their commitments.”

Grossi noted that the last time the IAEA faced such a dire financial situation was in the mid-1990s when some member states had a crisis of trust in the agency.