The last time the World Bank provided funding for a nuclear new-build project was 1959, when it provided capital for Italy’s first nuclear power plant. However, the bank’s formal ban on nuclear funding was not put in place until 2013.
What’s new: Banga explained that “electricity is a fundamental human right and the foundation of development. Jobs require electricity—as do health systems, education, clean water, public safety, and so much more. And demand will only grow as populations expand, economies industrialise, and digitalisation accelerates.”
He added, “what’s new is that, for the first time in decades, the World Bank Group will begin to reenter the nuclear energy space. [In partnership with the International Atomic Energy Agency and others] we will support efforts to extend the life of existing reactors in countries that already have them, and help support grid upgrades and related infrastructure. We will also work to accelerate the potential of Small Modular Reactors—so they can become a viable option for more countries over time.”
Banga also stated that the policy changes were part of “real progress toward a clear path forward on delivering electricity as a driver of development.”
Significant sway: Writing in The New York Times, energy and climate reporter Max Bearak noted, “The United States is the World Bank’s single largest shareholder and holds significant sway over its policies. In April, Treasury Secretary Scott Bessent urged the bank to lift its [nuclear funding] ban, saying in a speech that doing so would ‘revolutionize energy supply for many emerging markets.’ ”
Bearak suggested further possible influences for the World Bank’s shift by pointing out that the new German government has “voiced support for nuclear power, particularly the smaller next-generation reactors,” and that “[e]ven the Union of Concerned Scientists, long a voice of caution on nuclear proliferation, has softened its stance in recent years . . .”
Getting it done: Bearak called attention to the fact that the World Bank is seeking to balance climate concerns with energy needs. “Over the past decade, the bank has ramped up the proportion of its funding that goes to projects that either help reduce greenhouse gas emissions or help poor countries adapt to climate change. That has led to criticism from the Trump administration. But Mr. Banga has vowed to keep his climate commitments while expanding energy access to hundreds of millions of people in Africa who still lack it.”
Banga is quoted in the article as saying, “I’m not a climate evangelist. I’m just the guy getting the stuff done.”
