Boost For Oklo, NuScale? World Bank Lifts 12-Year Ban On Nuclear Support To Tackle ‘Complex Challenge’ Of Energy Demand

President Ajay Banga reportedly said the new stance on nuclear power will be implemented in conjunction with the International Atomic Energy Agency.

The World Bank has reportedly revoked a more than a decade-old ban on supporting nuclear power projects amid a surge in electricity demand.

According to a Bloomberg report, citing a memo from the lender’s president, Ajay Banga, the World Bank is also considering whether to fund natural gas exploration projects.

Banga reportedly said that the bank’s executive board on Tuesday adopted a new stance on nuclear power, which will be implemented in conjunction with the International Atomic Energy Agency.

The former Mastercard CEO wrote that meeting the growing electricity demand is “one of the most urgent and complex development challenges we face.”

According to the report, the World Bank plans to assist countries with existing nuclear reactors by extending their operational lifespan. Additionally, they will provide support for grid enhancements and associated infrastructure development.

The Washington-based bank will also help accelerate the development of small modular reactors (SMR), which are smaller in size and can be assembled adjacent to large projects such as manufacturing facilities or data centers.

Banga said that annual investment in energy generation, grids, and storage will have to rise to about $630 billion by 2035, from the current $280 billion in investments.

The International Energy Agency expects global electricity demand to grow by 4% through 2027, backed by tech giants’ power-guzzling data centers and the higher adoption of electric vehicles.

The U.S., the World Bank’s top shareholder, had already supported the move. U.S. Treasury Secretary Scott Bessent had said nuclear technology could “revolutionize energy supply” for many emerging markets.

“The World Bank must be tech-neutral and prioritize affordability in energy investment. In most cases, this means investing in gas and other fossil fuel-based energy production,” Bessent had said.

Banga said the bank’s governing body was still unsure whether to “engage in upstream gas.”

The makers of so-called SMRs, Oklo and NuScale Power, have more than doubled this year, while uranium fuel producer Cameco is up more than 29%.

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