World Bank Ends Nuclear Ban, Debates Upstream Gas Funding

The World Bank has lifted its decades-long ban on financing nuclear energy projects to address the urgent and growing electricity demands in developing countries, marking a significant shift in its energy policy under President Ajay Banga. The bank plans to collaborate closely with the International Atomic Energy Agency to enhance safeguards, safety, and regulatory frameworks, while also exploring the potential of Small Modular Reactors and supporting the extension of existing nuclear reactors. This move comes amid a push towards an 'all of the above' energy strategy that balances climate goals with stable and scalable power sources. Although the board agreed on nuclear funding, it remains undecided on whether to support upstream natural gas projects, with further discussions pending. The decision reflects broader global efforts to meet rising power demand projected to double by 2035 and to increase annual energy infrastructure investments substantially. The World Bank will continue to support grid upgrades, coal plant retirements or repurposing, and carbon capture initiatives as part of its comprehensive approach to energy development.