Washington [US], October 17 (ANI): US Treasury Secretary Scott Bessent has called on the World Bank Group to formally end its prohibition on financing upstream oil and gas projects, arguing that access to reliable and affordable energy is essential for economic growth, industrialisation and job creation in developing countries.

In his statement at the International Monetary Fund (IMF) and World Bank Annual Meetings in October 2026, Bessent said the multilateral lender should adopt a technology-neutral approach to energy financing and respond to countries seeking support for natural gas projects.

"The Bank cannot credibly invoke country ownership while categorically excluding upstream projects before their development merits are even assessed," Bessent said.

He said the World Bank must focus on delivering reliable, affordable and abundant energy, while directing resources towards countries and projects where they can have the greatest development impact.

The statement comes as the US pushes the World Bank to refocus its activities on poverty reduction and economic growth, with Bessent arguing that energy access is central to achieving these objectives.

"We therefore welcome the move to focus on outcomes rather than on arbitrary targets," he said, referring to the Bank's approach to energy financing.

Bessent also highlighted the World Bank and African Development Bank's goal of extending energy access to another 300 million people in Africa. He said achieving this target would require removing restrictions on support for natural gas and responding positively to demand for gas projects.

The US welcomed the approval of an International Development Association (IDA) project aimed at securing near-term gas supplies, preparing midstream and downstream investments, and developing gas strategies in West Africa.

Bessent also said the US was making an initial contribution to the Nuclear Energy Assistance Trust Fund to help countries prepare for future nuclear energy investments.

Beyond energy, the US called for reforms in the World Bank's lending and procurement policies, including phasing out sovereign lending to countries that have long met the criteria for graduation from Bank support. Bessent identified China and Poland as examples, describing the planned phase-outs as an important milestone.

He also urged the International Finance Corporation (IFC) to step up efforts to meet its commitment to direct 40 per cent of new commitments towards the poorest and most fragile countries, saying progress had fallen short.

On the IMF, Bessent called for stronger surveillance of global imbalances, debt vulnerabilities and exchange-rate policies, while urging the institution to concentrate its resources on its core mandate.

"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," he said. (ANI)