World Bank to support gas projects where appropriate — Climate Home News
World Bank President Ajay Banga said at the institution's annual meeting in Bangkok, Thailand, that the bank will continue to support certain gas projects in developing countries alongside renewable energy, hydropower and nuclear generation. Climate Home News reports.
According to Banga, households, mines, factories, farms and growing cities need reliable and affordable baseload generation. He noted that the World Bank's approach involves combining renewable energy sources, hydropower, gas where appropriate, nuclear energy, transmission networks, power grids and energy storage systems.
Support for energy projects
The World Bank stopped supporting coal projects around ten years ago, and last year it did not finance any oil project for the first time. The bank also no longer supports gas exploration, but finances some projects related to its transportation and use.
These include a $140 million project aimed at helping Benin, Côte d'Ivoire and Togo import liquefied natural gas. At the same time, World Bank financing for clean energy in 2023–2025 amounted to just under $10 billion annually, while fossil fuel financing was below $1.5 billion each year.
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US pressure and activists' position
Banga's statement came amid pressure from the United States, which is urging the World Bank to expand support for gas projects. US Treasury Secretary Scott Bessent said the bank should lift its ban on financing gas and oil exploration and production. In his view, this could help expand access to electricity in Africa.
Climate activists, by contrast, are calling for a complete end to fossil fuel financing. Sunil Acharya, a representative of the organization Recourse, said that fossil gas makes countries vulnerable to global market fluctuations and debt, and that public funds should be directed toward renewable energy.
In July, under US pressure, the World Bank scrapped its target of directing 45% of its financing to projects with climate benefits, but continued its climate change action plan. In June 2025, the bank also lifted its ban on supporting nuclear energy. Banga said that, in cooperation with the International Atomic Energy Agency, the institution would support the modernization of existing nuclear power plants.
