On June 12, 2025, the World Bank lifted its decades-long ban on funding nuclear energy projects, a significant policy shift aimed at addressing the surging electricity demands in developing countries. World Bank President Ajay Banga announced the decision in an email to staff, emphasizing an “all of the above” energy strategy to meet development goals. The move comes as electricity demand in developing nations is projected to more than double by 2035, requiring annual investments in energy infrastructure to rise from $280 billion to approximately $630 billion.
The bank will support extending the life of existing nuclear reactors, upgrading grids, and accelerating the development of small modular reactors (SMRs), collaborating with the International Atomic Energy Agency (IAEA) to ensure safety, security, and non-proliferation safeguards. The decision, influenced by pressure from the United States, the bank’s largest shareholder, and bipartisan support in the U.S. Congress through the International Nuclear Energy Financing Act of 2025, aims to provide cleaner energy alternatives and reduce reliance on Russian and Chinese nuclear financing.
The ban, in place since 2013 but with no nuclear funding since a 1959 project in Italy, had been criticized for limiting access to clean, reliable energy in lower-income countries, where 30% of nations projected to be nuclear-ready by 2050 are located. Over 20 development finance institutions had adopted similar restrictions, amplifying the global impact of the World Bank’s policy.
While the nuclear funding decision was swiftly approved, the bank’s board remains divided on funding upstream natural gas projects, with countries like Germany, France, and Britain expressing reservations. Proponents, including the Trump administration, argue that nuclear power supports economic growth in developing nations, while critics, including climate activists, worry it may divert resources from renewables like solar.
Posts on X reflect enthusiasm for the decision, highlighting its potential to boost nuclear energy and provide reliable power for developing countries.
There is no confirmed connection between the World Bank’s policy shift and the Ahmedabad plane crash involving a Boeing 787 Dreamliner, as the crash’s cause is still under investigation with no evidence linking it to nuclear energy or related issues.