World Bank Backs Energy Expansion Plans, Including Possible Nuclear Financing
The World Bank’s steering committee has endorsed plans to explore new options for expanding global energy access — including potential financing for nuclear power — marking a significant shift aligned with U.S. President Donald Trump’s push for increased energy investment.
The endorsement comes just days after U.S. Treasury Secretary Scott Bessent criticized development banks for “mission creep,” claiming institutions like the World Bank and the International Monetary Fund (IMF) have strayed from their traditional mandates of promoting economic growth and stability toward broader issues like climate change, gender equality, and inclusion.
In a joint statement, the World Bank Group and the IMF’s
Development Committee called on the Bank to help provide energy access to 300 million Africans by 2030.
“We encourage the WBG to explore other options for increasing affordable and reliable access to energy, including potential support of nuclear energy,” the Development Committee said.
Secretary Bessent welcomed the World Bank’s renewed focus on energy infrastructure, applauding its move to reconsider nuclear energy and voicing support for the continued use of fossil fuels to ensure affordability. He urged the Bank to prioritize core development goals over what he termed “distortionary climate finance targets.”
While the World Bank has pledged to allocate 45% of its lending portfolio to climate-related activities by 2026, the Development Committee warned that this may still fall short of meeting client demands for reliable electricity, resilient transportation systems, sustainable agriculture, and climate adaptation solutions.
World Bank Also Endorses Gender Equality Initiatives
Beyond energy, the steering committee fully endorsed the World Bank Group’s gender strategy, calling for expanded efforts to promote economic opportunities for women and girls.
“We commend WBG’s programs to expand economic opportunities for female entrepreneurs, including their work to provide capital and human capital for women, girls, and 80 million women-led businesses,” the committee’s statement read.
German Development Minister Svenja Schulze, speaking to reporters, emphasized the importance of keeping gender equality and climate action high on the Bank’s agenda. Schulze highlighted that European Union countries hold a 23% share in the World Bank, compared to the United States’ 16%.
“We have set the course for our bank over the last two years, and we need to stick with it,” Schulze said.
Observers at the meeting noted a shift in dynamics, with the United States not leading discussions as it traditionally has. Support for the U.S. position was also limited, apart from Russia.
One participant, speaking anonymously, remarked that Washington’s evolving stance toward the World Bank is surprising after decades of strong support. Questions remain about whether the U.S. will fulfill its $4 billion pledge to the International Development Association (IDA), the World Bank’s fund for the poorest countries.
Secretary Bessent clarified that the decision to honor the pledge, originally made under former President Joe Biden, will depend on U.S. budget negotiations and the implementation of reforms at the World Bank
