The World Bank's board has agreed to end a ban on funding nuclear energy, although this new policy is unlikely to immediately translate into financing for the development of new reactors. Nevertheless, it sends a strong message to multilateral and regional financial institutions and development organizations, which could help free up new sources of public financing for nuclear power projects.
World Bank President Ajay Banga in March indicated that a reversal of the ban could come in June 2026. While this week's policy shift has many drivers — including a rising tide of pronuclear momentum across various regions on the globe — one big driver in expediting this decision could be the Trump administration, which has essentially threatened withdrawal in a Feb. 4 executive order from "all international intergovernmental organizations." That would include the World Bank and the International Monetary Fund and termination of financial contributions to both Bretton Woods institutions. Washington, which today has a 17% stake in the World Bank, actually helped found the multilateral development bank as part of the Bretton Woods system at the end of World War II, and lawmakers on Capitol Hill have for some years been advocating for a repeal of the World Bank’s nuclear ban. Other countries, notably France, have also pushed back against the ban. And a major change came last month when previously antinuclear Germany elected a new government that committed to treat nuclear power on par with renewables at the EU level.
