World Bank Ends Nuclear Lending Ban for Developing Countries
World Bank President Ajay Banga and IAEA DG Rafael Mariano Grossi formalize a new cooperation agreement, clearing the way for nuclear climate finance in emerging markets.
The World Bank has lifted its longstanding prohibition on financing nuclear energy projects in developing nations. The decision, announced June 12, 2025, allows the bank to support small modular reactor (SMR) development and other advanced nuclear technologies under strict safety and governance conditions.
This change reverses a two-decade exclusion and positions nuclear power as an eligible technology in climate finance portfolios. World Bank President Ajay Banga cited the importance of maintaining a technology-neutral approach to decarbonization and improving energy access.
Initial activities will include technical assistance programs focused on capacity building, regulatory reform, and advisory services in partnership with the IAEA. These efforts will prioritize regions with growing electricity demand, such as Southeast Asia and sub-Saharan Africa.
The World Bank emphasized that support will be conditional on non-proliferation safeguards, robust regulatory oversight, and adherence to international safety standards.
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