Ajay Banga Makes Nuclear Power A World Bank Priority

WASHINGTON, DC -World Bank President Ajay Banga has made nuclear energy financing a priority as the institution returns to the sector after decades, US Treasury Secretary Scott Bessent said.

The policy shift comes as the World Bank prepares to phase out lending to China by 2031 and direct more of its resources towards poorer countries requiring development assistance.

“Mr. Banga, who heads the World Bank, we have made it clear to him that this is a priority,” Bessent said before the House Financial Services Committee. “And indeed, he has adopted this as a priority.”

“This is the first time in decades that the World Bank has moved forward on nuclear energy,” he said.

The World Bank began returning to nuclear energy financing in June 2025 after years of avoiding the sector.

House Financial Services Committee Chairman French Hill said the institution had taken its first concrete step by reaching an agreement with the International Atomic Energy Agency.

The arrangement allows the World Bank to receive technical expertise from the UN nuclear watchdog, support existing reactors and examine the potential of small modular reactors.

The committee had supported legislation encouraging the World Bank to reconsider its restrictions on nuclear financing. Republican Representative John Rose said the change could provide developing countries with reliable, affordable and secure energy.

The institution’s renewed interest in nuclear power is taking place alongside a broader reassessment of where its development funds should be directed.

“American taxpayers should not be backstopping Beijing and their ambitions at the World Bank,” Hill said. “That’s why the World Bank’s decision to phase out its lending to China by 2031 is an important step in the right direction.”

Hill said the World Bank should focus on reducing poverty and supporting economic growth in countries that genuinely needed development assistance. (IANS)