BLUF: Only the US, China, Korea, France, and Japan allow their DFIs to invest in new nuclear power. Most other agencies follow the World Bank/IFC nuclear prohibition. Removing nuclear from the IFC list would likely encourage other agencies to reconsider their bans too.

Relevance

• Nuclear technology could provide countries with firm low-carbon power at scale.
• Development finance institutions (DFIs) provide necessary infrastructure finance for emerging and developing economies via risk mitigation and lower-cost capital. Yet most DFIs explicitly prohibit investment in nuclear, thus limiting the potential for the technology as an energy and climate solution.

Findings

• Only DFIs from the US, China, Korea, France, and Japan are open to nuclear.
• All other bilateral DFIs are closed to investing in the technology.
• All multilateral financing agencies ban investment in nuclear.

Impact of the IFC’s nuclear ban (and its copycats)

• Nuclear is specifically prohibited in the World Bank’s energy policy and also barred by the Bank’s International Finance Corporation (IFC) investment exclusion list.
• At least 21 agencies copy the IFC exclusion list or use some close variation. The language is also mirrored in the EDFI Association’s harmonized exclusion list.
• Removal of nuclear from the IFC’s list could encourage other DFIs and investors who follow IFC guidelines to reconsider the technology. A policy change may even help create consortia to share risk and financing.