World Bank Lifts Nuclear Energy Funding Ban in Developing Nations

The World Bank has lifted its longstanding ban on financing nuclear energy projects in developing countries, marking a significant shift in its energy strategy. President Ajay Banga announced the decision as part of a broader initiative to meet the rising electricity demand.

Discussions remain ongoing about whether the Bank will support natural gas production funding and under what conditions. Some countries, like Germany, France, and Britain, have expressed reservations about expanding the Bank's energy approach to include natural gas.

Banga has advocated for a diversified energy policy approach since his appointment in June 2023. He highlighted that electricity requirements would more than double in developing nations by 2035, necessitating a significant increase in investments.

This decision has found favor with the U.S., the Bank's largest shareholder, amid concerns from climate activists that nuclear and natural gas projects might divert funds from renewable resources.

(With inputs from agencies.)