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US Pushes World Bank to Lift Oil and Gas Financing Ban

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US Treasury Secretary Scott Bessent has urged the World Bank Group to lift its ban on financing upstream oil and gas projects, arguing that reliable and affordable energy is crucial for economic growth in developing nations. During the International Monetary Fund (IMF) and World Bank Annual Meetings in October 2026, Bessent advocated for a technology-neutral approach to energy financing, emphasizing the need to support natural gas projects where demand exists.

Bessent criticized the World Bank's current policy, stating that excluding upstream projects before assessing their development merits undermines the principle of country ownership. He stressed that the World Bank should prioritize delivering abundant, affordable energy and allocate resources to projects with the greatest development impact. The US welcomed the World Bank's shift towards outcome-based energy financing rather than arbitrary targets.

The US also supported the World Bank and African Development Bank's goal of extending energy access to 300 million more people in Africa, calling for the removal of restrictions on natural gas support. Bessent highlighted the approval of an International Development Association (IDA) project aimed at securing gas supplies and developing gas strategies in West Africa. Additionally, the US announced an initial contribution to the Nuclear Energy Assistance Trust Fund to support future nuclear energy investments.

Beyond energy, Bessent called for reforms in the World Bank's lending and procurement policies, including phasing out sovereign lending to countries like China and Poland that no longer meet the criteria for Bank support. He also urged the International Finance Corporation (IFC) to increase its commitments to the poorest and most fragile countries. Regarding the IMF, Bessent emphasized the need for stronger surveillance of global imbalances and debt vulnerabilities, urging the institution to focus on its core mandate.

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