Bessent calls for World Bank reforms, including upstream oil and gas financing

US Treasury Secretary Scott Bessent has called for significant reforms at the World Bank, aligning with Trump administration priorities. Among his demands are lifting the bank's ban on financing upstream oil and gas projects, funding deep-sea critical minerals mining, and overhauling procurement policies.

In a statement to the World Bank and International Monetary Fund steering committees, Bessent urged the IMF to take a stronger stance against non-market policies leading to global imbalances, a reference to US criticism of China.

Bessent advocated for a technology-neutral approach to energy, removing constraints on natural gas and oil projects. He emphasized that the World Bank cannot credibly assert country ownership while simultaneously excluding upstream projects before assessing their development merits.

The US Treasury Secretary announced an initial contribution to a new World Bank-administered Nuclear Energy Assistance Trust Fund, aimed at supporting countries in preparing for future nuclear power investments. Bessent also stressed the World Bank's crucial role in developing critical minerals mining and processing capabilities, including deep-sea mining, where the bank could provide essential guidance in this emerging sector.

Bessent pushed for faster graduation of wealthier nations, such as China and Poland, from the World Bank's borrowing system. He proposed reforming project procurement policies to discourage subsidies or reward distortive industrial policies, emphasizing the need for increased competition and quality. The Treasury Secretary also called for the IMF to enhance its analysis of global imbalances, including the impact of non-market policies and practices and exchange rates.