The world's largest and most influential development bank said Wednesday it would lift a long-standing ban on funding nuclear projects.
The decision by the World Bank's board could have deep implications for the ability of developing countries to industrialize without burning planetary fuels such as coal and oil.
The ban has been officially in place since 2013, but the bank last funded nuclear power projects in 1959. Since then, some of the bank's major funders, particularly Germany, have opposed nuclear involvement on the ground that the risk of catastrophic accidents in poor countries with little nuclear technology expertise is unacceptably high.
The bank's policy shift, explained in an email to employees late Wednesday, comes as nuclear power is experiencing a global surge in support.
Throwing nuclear power as an essential alternative to fossil fuels, more than 20 countries, including the United States, Canada, France and Ghana, signed a pledge two years ago at the United Nations Flagship Climate Conference to triple nuclear power by 2050.
The Trump administration is far less concerned about climate change than it is in competition with Russia or China's nuclear industry, but is trying to expand the US reactor fleet and contribute to the country's electrical grid. Cabinet officials highlight support for a new generation of small nuclear reactors that offer promises for faster deployments, but have yet to prove.
The United States is the World Bank's sole largest shareholder and has significantly shaken its policies. In April, Treasury Secretary Scott Bescent urged banks to lift the ban, saying in a speech it would “revolutionize the energy supply of many emerging markets.”
The new German government, led by the Christian Democratic Union, has expressed its support for small-scale next-generation nuclear reactors. Germany decided to abolish its own reactor after the 2011 Fukushima disaster, and in 2023 it closed its last reactor.
Even a coalition of interested scientists, a long-term warning voice on nuclear proliferation, has not supported the construction of new nuclear reactors in recent years, but says that “the low-carbon electricity provided by existing nuclear power plants is increasingly valuable in the fight against climate change.”
The bank's move was welcomed by nuclear advocates as an alternative to fossil fuels. Their combustion is the main cause of global warming.
“If you're concerned about moving the world away from coal, this is potentially large, especially in Southeast Asia,” said Todd Moss, executive director of the Energy for Growth Hub. Countries like Vietnam and Indonesia are relying on coal and are seeking loans to help coal plants retire early by replacing them with cleaner alternatives.
The bank stopped funding oil and gas drilling projects in 2017, but continues to work on gas-related infrastructure in developing countries. In an email to staff members Wednesday, bank president Ajay Banga raised the possibility that the ban on oil and gas drilling could be lifted in the future, but no agreement was reached.
Over the past decade, banks have either reduced greenhouse gas emissions or increased the proportion of funds sent to projects that help poor countries adapt to climate change. This led to criticism from the Trump administration. But Banga has vowed to maintain his climate commitment while expanding energy access to hundreds of millions of people in Africa who still lack it. Much of that effort relies on small-scale solar power generation.
“I'm not a climate evangelist,” Banga said in an interview this year. “I'm a man who was just a person.”
Russia, China, the US and European countries are in various stages of developing small modular nuclear reactors and raising funds for the World Bank.
Currently, developing countries are turning their eyes to Russia and China, primarily for nuclear technology and fundraising. These countries have partially or entirely state-run nuclear energy companies, with everything from fuel to fundraising, allowing developing countries to approach it as a simple one-stop shop.
“The Russian-China deal comes with a 30-40-year fuel lockup agreement,” Moss said. His organization estimates that 20 countries with no access to nuclear energy already have the technical expertise to begin construction, or will do so by 2030.
Ghana, for example, is urging the World Bank to change its nuclear policy. Because that's because we want to build our own nuclear reactors without throwing lots into one geopolitical corner. I've been trying it since the 1960s.
Ishmael Akka, technical advisor to Ghana's Ministry of Energy, said: “We hope that the 24-hour economy, industrial production is happening day and night,” Ackah said.
