Climateupdated 1h ago2 min read
Ajay Banga Says World Bank Will Back Gas Where Appropriate Amid U.S. Pressure
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World Bank will back gas projects where appropriate amid U.S. pressure. US demands end to oil and gas financing ban and support for deep-sea mineral mining.
8 outlets told this the same way.
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Gas Backed Under Pressure
Ajay Banga told the bank's annual meeting in Bangkok on Friday that the World Bank will continue to support some gas projects in developing countries alongside renewables, hydro, gas where appropriate, nuclear when it makes sense, transmission, grids, storage.
Banga framed the bank's approach as "balanced by design - a full mix of renewables, hydro, gas where appropriate, nuclear when it makes sense, transmission, grids, storage - the whole thing."
The Climate Home News account said Banga faced pressure from the US to finance more gas projects and from climate campaigners to stop funding fossil fuels altogether, after Donald Trump’s re-election in 2025.
Banga also told the meeting, "Homes, mines, factories, farms, and growing cities - what do they need? Reliable, affordable baseload power," as the World Bank president defended the continued role for gas.
Bessent Demands Oil and Gas
Scott Bessent sent a list of demands to the World Bank and the International Monetary Fund, urging an end to the ban on financing oil and gas exploration and production projects and calling for a technology-neutral approach in the energy sector. Bessent argued that "The Bank cannot credibly invoke country ownership while categorically excluding exploration and production initiatives before even assessing their potential for development."
The Inspenet account said the US proposal also included an initial contribution to a World Bank-administered trust fund aimed at helping countries develop the technical, regulatory, and institutional capacities necessary to prepare future investments in nuclear energy. Bessent also pressed for changes that would accelerate the removal of wealthier countries, such as China and Poland, from the lists of countries eligible for concessional borrowing, according to the Inspenet summary.
Nuclear, Minerals, and IMF
The World Bank president’s stance on gas and baseload power ran alongside US demands that the World Bank expand roles in nuclear energy and critical minerals, including deep-sea mining. The MarketScreener España account said the US Treasury announced an initial contribution to a new Energy Nuclear Assistance Trust Fund managed by the World Bank, aimed at helping different countries lay the groundwork for future investments in this area.
The Climate Home News account said the bank ended its support for coal around ten years ago and last year, for the first time, funded no oil projects, while it still backed some projects to do with transporting and using gas, including a $140-million project to help Benin, Côte d’Ivoire and Togo import liquefied natural gas (LNG). The MarketScreener España account also said Bessent urged the IMF to intervene more decisively against market-law policies that cause global imbalances, and it quoted Bessent saying, "The IMF was founded to prevent these kinds of policies and their negative repercussions, so it must assert its position on such a crucial matter or risk being sidelined."