Which Development Finance Institutions Should Open Up to Nuclear Next?

Written by Marli Kasdan and Daniel Johansson, originally published on December 9, 2025, on The Energy for Growth Hub website.

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BLUF: The World Bank lifted its nuclear prohibition in June 2025. The Asian Development Bank followed suit in November 2025. Yet other agencies retain legacy bans, limiting countries’ clean energy options and hurting the competitiveness of Western technology.

What’s at stake: Even after recent reversals, only 8 of the 28 major Development Finance Institutions (DFIs) can finance nuclear today. Technology-neutral DFI policies enable countries to choose their own optimal energy mix, while strengthening Western competition against Russian and Chinese nuclear export dominance.

Who else should move?

• The African Development Bank and European Investment Bank are each considering a change.

• The European Bank for Reconstruction and Development could expand beyond nuclear safety to support new nuclear investments in Eastern Europe and Central Asia, especially in countries seeking to break energy dependence on Russia.

• The Islamic Development Bank serves several countries that want expanded nuclear power.

• The European Development Finance Institutions (EDFI) network of 15 DFIs has a common exclusion list; adopting nuclear-positive guidance would help to normalize an open position.

Think you’re too small? Think again

• Smaller players like FinDev Canada, and Swedfund might hesitate given conventional nuclear’s size and cost. But demand is growing for small modular reactors that have lower costs than conventional nuclear power, and small DFI participation sends crucial market signals.

• Policy changes to enable co-financing and wrap-around support like technical assistance or workforce development can open up more financing options for nuclear in emerging markets.

Why timing matters

The first Western, next-generation SMRs are set to be ready for deployment by 2030, but need financing decisions in the near-term to compete internationally. China provides substantial state-backed nuclear financing, while Russia’s state-owned Rosatom dominates reactor exports. Leveling the playing field for nuclear financing depends on more DFIs opening up to nuclear energy.

Table of DFIs

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