World Bank Lifts Ban on Nuclear Energy Financing, Expands Support for Developing Countries

The World Bank has reversed its 2017 ban on financing nuclear energy projects, signaling a renewed commitment to meeting the growing electricity demand in developing countries by supporting nuclear power, including extending the life of existing reactors and promoting Small Modular Reactors, while also focusing on grid upgrades and retiring coal plants. This policy shift aligns with the Asian Development Bank's (ADB) similar move to lift its own ban on nuclear power funding, a decision criticized by some experts who warn it risks public welfare in favor of corporate profits and overlooks environmental and health concerns associated with nuclear power. Meanwhile, the African Energy Chamber (AEC) strongly urges the World Bank to also lift its ban on financing upstream oil and gas projects, advocating for a pragmatic energy mix combining fossil fuels and renewables to address Africa's severe energy poverty, which affects around 600 million people and hampers economic development. The AEC argues that natural gas offers a scalable, affordable, and lower-carbon solution essential for Africa's immediate energy needs and long-term just transition, criticizing global climate policies for disproportionately targeting Africa despite its minimal contribution to global emissions. Both the World Bank and ADB's policy reversals reflect a broader debate on balancing energy access, economic growth, and environmental sustainability, with calls for due diligence and caution in adopting nuclear energy funding and for a balanced approach to fossil fuel financing in developing regions. These developments highlight the tension between urgent energy needs in the Global South and the environmental and social risks associated with different energy sources.