U.S. Pushes World Bank to End Ban on Upstream Oil and Gas Funding

Bessent argued that the Bank’s current stance undermines its stated mission of reducing poverty and fostering economic growth. By restricting borrower choices, the institution prevents developing nations from accessing the capital needed for energy security. To reach the shared objective of providing electricity to 300 million people across Africa, the Treasury chief insisted the Bank must adopt a technology-neutral approach, assessing projects based on their individual merits rather than blanket policy exclusions.

The World Bank Group originally implemented its ban on upstream oil and gas financing in 2017, with only narrow exceptions for the poorest nations under strict Paris Agreement conditions. Bessent dismissed these caveats as insufficient, claiming the Bank cannot champion country-led development while categorically blocking fossil fuel exploration. This push aligns with the Trump administration’s aggressive stance against green policy agendas in global organizations, mirroring recent threats to abandon the International Energy Agency unless it shifts its focus away from decarbonization forecasts.