• The World Bank is actively considering lifting its long-standing ban on nuclear energy financing, with a potential policy shift expected by June 2025.
  • Bipartisan US legislation directs Treasury to push multilateral banks to support nuclear projects, citing competition with Russia and China.
  • Over 20 nations backing COP28's nuclear pledge see World Bank involvement as critical for clean energy transitions in developing economies.

A Policy Shift in Motion

World Bank President Ajay Banga has signaled support for including nuclear energy in the institution's lending portfolio, marking what would be a significant reversal of decades-old policy. According to sources familiar with internal discussions, the change could be presented for executive board approval as early as June 2025.

"We're looking at an all-of-the-above energy strategy that meets countries where they are," Banga said recently when pressed about the potential policy shift. This comes as the Development Committee, chaired by Sweden's Finance Minister Elisabeth Svantesson, has explicitly encouraged the Bank to explore nuclear options.

The Washington Factor

The momentum coincides with strong bipartisan action in Washington. The International Nuclear Energy Financing Act of 2025 cleared the House Financial Services Committee by a 39-10 margin in March, with unusual alignment between Republicans and Democrats. The bill mandates that US representatives at multilateral institutions work to remove nuclear financing restrictions.

"This isn't just about energy policy—it's about countering state-backed nuclear exporters like Rosatom," said a congressional staffer involved in the legislation, referencing Russia's nuclear giant. The staffer noted that current rules put US firms at a disadvantage against competitors benefiting from government financing.

The Global Calculus

At least 20 countries that pledged at COP28 to triple nuclear capacity by 2050 view World Bank participation as essential for emerging economies. African nations in particular could benefit, with the Bank's "Mission 300" energy access initiative potentially incorporating nuclear solutions.

Bank insiders suggest the policy review will weigh nuclear's role in baseload power against traditional concerns about cost and safety. One official, speaking anonymously, said smaller modular reactor technologies have "changed the conversation" by addressing some historical objections.

While commercial lenders remain wary, the potential policy shift reflects growing recognition that nuclear may be indispensable for both energy security and climate goals. The coming months will show whether institutional caution gives way to strategic necessity.