From TIME · Justin Worland · · 1m 20s
Climate change hides in the economy's blind spot
World leaders ignore climate at financial summits, but energy security and debt are forcing the issue anyway.
In brief
World leaders ignore climate at financial summits, but energy security and debt are forcing the issue anyway. Climate change has vanished from international financial agendas despite driving debt crises and energy shocks that reshape economic competition. Originally reported by TIME.
Climate vanishes from the agenda
World Bank and International Monetary Fund leaders gathered in Bangkok this week focused on war, AI and debt. Climate change, once a key priority, barely appeared in discussions.
But climate shapes the crisis
Climate events have worsened debt in developing countries. Clean energy deployment has kept energy price crises from getting worse where it has been deployed at scale.
The triple shock hits hard
A United Nations Development Programme report identifies high borrowing costs, energy price spikes, and extreme weather events driven by this year's El Niño, which is on course to set records.
Governments choose short-term fixes
The most common response is fuel price support through subsidies or tax cuts. Explicit fuel subsidies could surpass one trillion dollars this year globally, but this approach is unsustainable.
Debt blocks the clean energy path
Some countries invest in renewable energy and electrification instead. But heavy indebtedness and high interest rates prevent most from affording structural changes needed to reduce fossil fuel dependence.
The bottom line
Climate change has vanished from international financial agendas despite driving debt crises and energy shocks that reshape economic competition.
