US Demands End to World Bank's Oil and Gas Financing Ban
US Treasury Secretary Scott Bessent calls for a World Bank energy policy overhaul to support oil and gas projects in developing nations.
In a bold move to reshape global energy policy, US Treasury Secretary Scott Bessent has called upon the World Bank Group to formally scrap its restrictions on financing upstream oil and gas projects. Speaking at the International Monetary Fund (IMF) and World Bank Annual Meetings in October 2026, Bessent argued that providing developing nations with access to reliable and affordable energy is a non-negotiable prerequisite for industrialisation, job creation, and overall economic growth.
A Push for Technology-Neutral Energy
The US Treasury Secretary advocated for a "technology-neutral" approach, suggesting that the World Bank should not categorically exclude specific energy sources before evaluating the actual development merits of a project. Bessent pointed out a contradiction in the Bank's current stance, stating that it cannot truly support "country ownership" if it preemptively blocks upstream projects that a nation may deem essential for its survival and growth.
According to Bessent, the primary objective of the World Bank must be the delivery of abundant, affordable, and reliable energy, ensuring that resources are channeled where they can generate the highest development impact. He expressed support for shifting the Bank's focus toward actual outcomes rather than adhering to "arbitrary targets."
Powering Africa's Future
A significant portion of this policy push centers on the African continent. Bessent highlighted the ambitious goal shared by the World Bank and the African Development Bank to bring energy access to an additional 300 million people across Africa. He asserted that this target is unattainable without removing the current restrictions on natural gas support.
In a positive step toward this goal, the US welcomed the approval of an International Development Association (IDA) project. This initiative is designed to:
- Secure near-term gas supplies.
- Prepare investments for midstream and downstream infrastructure.
- Develop comprehensive gas strategies specifically for West Africa.
Furthermore, the US is expanding its energy horizons by making an initial contribution to the Nuclear Energy Assistance Trust Fund, aimed at helping nations prepare for future investments in nuclear power.
Broader Reforms: From Lending to IMF Accountability
The US's vision for reform extends beyond energy. Scott Bessent called for a complete overhaul of the World Bank's procurement and lending policies. A key proposal is the phasing out of sovereign lending to countries that have already met the criteria for "graduation" from Bank support. He specifically named Poland and China as examples of nations where such phase-outs would mark an important milestone.
Bessent also turned his attention to the International Finance Corporation (IFC), urging it to honor its commitment to direct 40 per cent of new commitments toward the most fragile and poorest countries, noting that current progress has been insufficient.
Demands for IMF Rigor
Regarding the International Monetary Fund, the US Treasury Secretary demanded a return to the institution's core mandate. He called for:
- Stronger surveillance of global imbalances.
- Better monitoring of exchange-rate policies.
- More rigorous assessments of debt vulnerabilities.
"The United States will hold the IMF accountable for translating these reforms into stronger surveillance, more effective lending, and more robust assessment of debt sustainability," Bessent declared.