The World Bank has decided to lift its long-standing ban on funding nuclear energy projects in developing countries, signaling a shift in strategy to help meet growing global electricity demands. World Bank President Ajay Banga confirmed the move in a message to staff on Wednesday, following a productive discussion with the bank’s board a day earlier.
Banga outlined the updated energy policy, noting that while board members reached consensus on supporting nuclear power, there is still no agreement on whether the bank should finance upstream natural gas production, and if so, under what conditions.
The World Bank, which provides low-interest loans for infrastructure and development projects worldwide, halted funding for nuclear projects in 2013. In 2017, it also announced an end to funding upstream oil and gas projects starting in 2019, though exceptions could be made for gas projects in the world’s poorest countries.
Sources familiar with the talks said that while the nuclear funding decision faced little resistance, several nations—including Germany, France, and the United Kingdom—hesitated to support a policy shift allowing investment in upstream natural gas projects.
“These are complex issues, but we’ve made meaningful progress toward defining a clear path to expand electricity access as a key driver of development,” Banga said. He added that more discussions are needed before any final decision on natural gas funding is reached.
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