OPINION | DAVID HESS
Welcome back, World Bank, to the nuclear family
The World Bank’s change on policy on nuclear energy is a momentous event. The recent decision to include nuclear within the Bank’s scope may help to unlock new markets and bring the technology to the people who need it most.
David Hess, Senior VP DeepGeo
HE DOMINOES KEEP FALLING. Momentum for new nuclear is cascading – forming such a wave that surely the only thing that can stop the industry from expanding globally is the industry itself.
The latest obstacle to crumble is
the World Bank’s exclusion on financing nuclear projects. This exclusion had long been a sore spot (read gaping wound) for the nuclear industry, as even though it was widely understood that the Bank was incapable of single- handedly financing large-scale nuclear development due to insufficient funds, its willingness to invest even small amounts could de-risk projects in challenging newcomer markets, and act as a powerful signal to the rest of the financial system that nuclear energy was indeed safe and sustainable.
The World Bank decided to formally exclude nuclear
projects from its portfolio in 2013, but as many have noted a de facto ban seems to have been in place since 1959 – which was the last time it loaned to a nuclear project (the Garigliano nuclear power plant in Italy). This matters because the World Bank plays an important
role in the developing world and emerging economies by providing both financing and technical assistance on infrastructure projects with the potential to promote sustainable social economic growth. The exclusion on nuclear meant that it was providing neither of these things to these countries – leaving advising activities to the likes of the IAEA, and financing activities to vendor nations (and one nation in particular). The Bank initially justified the exclusion on perceived
©Alexy Kovynev
safety and proliferation concerns. It was no doubt influenced heavily by the anti-nuclear movement and pressure exerted by certain board member nations and especially Germany. In more recent years the Bank preserved the ban citing its own lack of competency on nuclear issues. This was obviously a self-fulfilling proclamation, since it could hardly become competent without either recruiting that competency or investing the resources required to build it from the ground up. What has influenced the change? One supposes that the decision in May by Germany to drop opposition to nuclear projects at the EU level has played a substantial role, although it is surprising just how quickly this must have filtered through to the World Bank’s decision-making process. No doubt the change had long been under consideration and this was just the last straw on the camel’s back. In a video address World Bank President Ajay Banga noted year-long conversations with the French government as an influential factor, and discussions with IAEA Director General Rafael Grossi last year. Other factors most likely include the statement last
“What’s going on? – The World Bank has lifted the ban on nuclear financing!”
14 | July 2025 |
www.neimagazine.com
September by 14 major banks to endorse nuclear as a climate solution and to triple nuclear energy by 2050. And, the victory a few years earlier which saw nuclear energy listed as a sustainable activity within the EU taxonomy
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