The World Bank has lifted a long-standing ban on funding nuclear power projects, a decision that could reshape energy strategies for developing nations previously reliant on fossil fuels.
World Bank Reverses Nuclear Funding Ban, Opens New Path for Developing Nations
World Bank Reverses Nuclear Funding Ban, Opens New Path for Developing Nations
World Bank's new stance on nuclear energy aims to support developing countries in industrialization and emissions reduction.
The world’s largest development bank announced on Wednesday its decision to end the ban on financing nuclear power projects, reversing a policy in place since 2013. This move could dramatically affect the energy landscape in developing countries, allowing them to industrialize while reducing reliance on coal and other fossil fuels that contribute to climate change. The last time the World Bank was involved in a nuclear project was in Italy back in 1959, but pressure from major funders, particularly Germany, previously prevented any financing since then due to concerns over safety in poorer countries where nuclear expertise may be lacking.
The bank’s change in policy was communicated to staff via email and aligns with a growing global momentum in favor of nuclear energy. Over 20 countries, including the United States, Canada, France, and Ghana, pledged at the United Nations climate conference to significantly expand nuclear power by 2050. This collaboration emerged as nations grapple with transitioning away from fossil fuels to mitigate climate change.
In parallel, the Trump administration, motivated by geopolitical competition rather than merely climate concerns, is working to increase the number of nuclear reactors in the U.S. and aims to enhance their role in the national energy grid. Cabinet officials have specifically voiced support for next-generation smaller reactors that are touted for their potential for faster deployment, although their practical effectiveness remains to be demonstrated. The World Bank’s policy shift may not only facilitate energy independence for developing regions but could also bolster the global competitiveness of U.S. nuclear technology in the evolving energy landscape.
The bank’s change in policy was communicated to staff via email and aligns with a growing global momentum in favor of nuclear energy. Over 20 countries, including the United States, Canada, France, and Ghana, pledged at the United Nations climate conference to significantly expand nuclear power by 2050. This collaboration emerged as nations grapple with transitioning away from fossil fuels to mitigate climate change.
In parallel, the Trump administration, motivated by geopolitical competition rather than merely climate concerns, is working to increase the number of nuclear reactors in the U.S. and aims to enhance their role in the national energy grid. Cabinet officials have specifically voiced support for next-generation smaller reactors that are touted for their potential for faster deployment, although their practical effectiveness remains to be demonstrated. The World Bank’s policy shift may not only facilitate energy independence for developing regions but could also bolster the global competitiveness of U.S. nuclear technology in the evolving energy landscape.
