US pushes World Bank to scrap oil, gas funding curbs in major energy policy overhaul
US Treasury Secretary Scott Bessent has urged the World Bank to lift restrictions on financing upstream oil and gas projects. He argues that developing nations require reliable fossil fuel energy to foster industrialization and economic growth.
Why it matters
This policy shift could significantly alter global climate finance strategies and reignite debates over the balance between environmental sustainability and economic development in emerging markets.
US treasury secretary Scott Bessent has urged the World Bank to end its restrictions on financing upstream oil and gas projects, arguing that developing countries need reliable and affordable energy to drive economic growth, industrialisation and job creation.According to news agency ANI, Bessent made the demand during the October 2026 annual meetings of the International Monetary Fund (IMF) and the World Bank, calling for a technology-neutral approach to energy financing and greater support for countries seeking investments in natural gas projects.“The Bank cannot credibly invoke country ownership while categorically excluding upstream projects before their development merits are even assessed,” Bessent said.The demand could reignite debate over the role of fossil fuels in development financing, particularly as developing countries seek to expand electricity access, strengthen energy security and build industrial capacity.The World Bank announced in 2017 that it would stop financing new upstream oil and gas projects after 2019, subject to…
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