The World Bank has lifted its long-standing ban on funding nuclear power projects. This pivotal decision allows developing nations to harness nuclear energy as a means to industrialize and reduce reliance on fossil fuels. The ban had been in place since 2013, with the last nuclear project funded by the bank occurring in 1959. The shift comes as global support for nuclear energy grows, expressly to combat climate change. The U.S. and several other countries are advocating for a rapid expansion in nuclear energy, reflecting a significant change in strategy aimed at enhancing energy security.
World Bank Reverses Nuclear Funding Ban to Aid Developing Countries
World Bank Reverses Nuclear Funding Ban to Aid Developing Countries
The World Bank's new policy could help reduce carbon emissions and foster industrial growth in poorer nations.
As of June 11, 2025, the World Bank announced a groundbreaking policy change – the lifting of its prohibition on funding nuclear power projects, a move that could significantly transform the energy landscape for developing nations. The ban, established in 2013, had its origins in concerns raised by some member countries, notably Germany, regarding the safety of nuclear energy in less experienced hands. Historically, the last nuclear project funded by the bank can be traced back to 1959 in Italy, indicating a long hiatus in its support for nuclear initiatives.
This policy reversal is timely, coinciding with an international climate shift favoring nuclear energy as a vital alternative to fossil fuels. Recent initiatives led by over 20 countries—including the United States, Canada, and Ghana—highlight a collective commitment to triple nuclear power availability by the year 2050. As nations face increasing pressure to reduce carbon emissions, turning to cleaner energy sources has become a pressing necessity.
In the U.S., initiatives to boost domestic nuclear capabilities have gained momentum, driven by a desire to compete with rapidly developing Russian and Chinese nuclear technologies. The current administration is advocating for a new generation of reactors designed for quicker deployment, although these technologies have yet to undergo comprehensive testing.
This updated stance from the World Bank marks a significant paradigm shift, offering a new pathway for developing economies to pursue industrial growth while addressing urgent environmental concerns through sustainable energy practices.
This policy reversal is timely, coinciding with an international climate shift favoring nuclear energy as a vital alternative to fossil fuels. Recent initiatives led by over 20 countries—including the United States, Canada, and Ghana—highlight a collective commitment to triple nuclear power availability by the year 2050. As nations face increasing pressure to reduce carbon emissions, turning to cleaner energy sources has become a pressing necessity.
In the U.S., initiatives to boost domestic nuclear capabilities have gained momentum, driven by a desire to compete with rapidly developing Russian and Chinese nuclear technologies. The current administration is advocating for a new generation of reactors designed for quicker deployment, although these technologies have yet to undergo comprehensive testing.
This updated stance from the World Bank marks a significant paradigm shift, offering a new pathway for developing economies to pursue industrial growth while addressing urgent environmental concerns through sustainable energy practices.
