Decision comes as electricity demand in developing countries is set to more than double by 2035
\n Washington
\nThe World Bank is re-entering the nuclear energy space \u201cfor the first time in decades,\u201d its President Ajay Banga said Wednesday, as it works towards meeting growing electricity demand in developing countries.
\nBanga said in an email to staff that the bank will work closely with United Nations nuclear watchdog the International Atomic Energy Agency (IAEA), \u201cstrengthening our ability to advise on non-proliferation safeguards\u201d and regulatory frameworks.
\nThe decision comes as electricity demand in developing countries is set to more than double by 2035, Banga noted in the memo seen by AFP.
\nTo meet this need, annual investment in energy generation, grids and storage will have to increase from $280 billion today to about $630 billion.
\n\u201cWe will support efforts to extend the life of existing reactors in countries that already have them, and help support grid upgrades and related infrastructure,\u201d Banga said.
\nThe Washington-based lender will also work to speed up the \u201cpotential of Small Modular Reactors\u201d so these can become a viable choice for more countries eventually.
\nBanga, who took the helm of the development lender in 2023, has pushed for a change in the bank\u00b4s energy policy \u2014 and his letter comes a day after a board meeting.
\n\u201cThe goal is to help countries deliver the energy their people need, while giving them the flexibility to choose the path that best fits their development ambitions,\u201d Banga said.
\nBesides focusing on improving grid performance, he added that the institution will continue financing the retirement or repurposing of coal plants, supporting carbon capture for industry and power generation.
\nIn April, on the sidelines of the International Monetary Fund and World Bank\u00b4s spring meetings, US Treasury Secretary Scott Bessent said the bank could use resources more efficiently by helping emerging countries boost energy access.
\nHe said that it should focus on \u201cdependable technologies\u201d rather than seek out \u201cdistortionary climate finance targets.\u201d
\nThis could mean investing in gas and other fossil fuel-based energy production.
\nBessent at the time also lauded the bank\u00b4s efforts toward removing restrictions on support for nuclear energy.
\nBeyond the shift in nuclear energy financing, Banga said Wednesday that the bank has yet to reach agreement within its board on whether it should \u201cengage in upstream gas,\u201d and under what circumstances it should do so.
\nThe United States, which is the World Bank\u00b4s biggest shareholder, is among countries to have campaigned for the group to rethink its ban on supporting nuclear projects.<\/p>\n","protected":false},"excerpt":{"rendered":"
Decision comes as electricity demand in developing countries is set to more than double by 2035 Washington The World Bank is re-entering the nuclear energy space \u201cfor the first time in decades,\u201d its President Ajay Banga said Wednesday, as it works towards meeting growing electricity demand in developing countries. Banga said in an email to […]<\/p>\n","protected":false},"author":2,"featured_media":467908,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-483904","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n