Bessent urges World Bank to end restrictions on upstream oil, gas financing

In a statement issued late on Wednesday to the steering committees of the World Bank and the International Monetary Fund, Bessent called for a technology-neutral approach to energy investment and fewer constraints on oil and natural gas projects. He argued that the bank should assess projects on their individual merits rather than exclude entire categories of energy development, the report stated.

The US Treasury also said it was making an initial contribution to a new World Bank-administered Nuclear Energy Assistance Trust Fund to help countries prepare for future nuclear power investments.

Bessent called on the World Bank to play a greater role in developing critical minerals mining and processing capacity, including deep-sea mining. The US administration sees such resources as important to strengthening supply chains for minerals used in advanced technologies and other strategic industries.

The Treasury said the bank could help the emerging deep-sea mining sector by providing technical knowledge and guidance.

Bessent also pressed the World Bank to accelerate the graduation of wealthier countries, including China and Poland, from its borrowing programmes. He called for reforms to procurement policies to encourage greater competition and quality while avoiding incentives for subsidies or industrial policies that distort markets, as per the report.

Also Read | Global Market Today: Stock selloff extends to Asia as chip rout deepens

The demands reflect the Trump administration's broader push to reshape international economic institutions around its priorities, including expanded fossil fuel production, energy security and access to strategic mineral resources.

On the IMF, Bessent called for stronger scrutiny of global economic imbalances, particularly those arising from non-market policies and practices, as well as exchange-rate policies. The remarks were an implicit reference to Washington's longstanding criticism of China's economic model and its impact on international trade.

The US Treasury said the IMF should strengthen its analysis of the causes of persistent imbalances and take a more assertive role in addressing policies that generate negative spillovers across economies.

The push comes as the Trump administration seeks to increase pressure on multilateral institutions to address what it views as distortions in global trade and investment. The proposals could also expose differences with countries and stakeholders that favour tighter restrictions on fossil fuel financing and place greater emphasis on climate-related development goals.

The World Bank and IMF, which are holding their annual meetings in Washington, play central roles in development financing, economic surveillance and international financial stability. The US demands could shape discussions over the institutions' lending priorities, governance and approach to global economic risks, according to Reuters.