The war in Iran, AI, and countries’ growing debt burden all sat at the top of the agenda as leaders of the world’s international financial institutions gathered in Bangkok this week for the fall meetings of the World Bank and International Monetary Fund (IMF).

Even with some bright spots, the picture is challenging. The war has driven up fuel prices, leading to inflation. Meanwhile, public debt is soaring, a development the IMF warns is unsustainable. And the enormous investment in AI is a positive development keeping the bottom from falling out—though only in certain economies.

At a first glance, climate change, once touted as a key priority by the two most influential international financial institutions, has fallen off the agenda. But take a closer look and it’s hard to miss how climate change—and the related deployment of clean energy—will play an important role in economic performance. Climate events have worsened the debt challenge in developing countries. Clean energy, on the other hand, has served as a critical defense mechanism that has kept the energy price crisis from getting worse in places where it has been deployed at scale.

Future Proof Weekly Making sense of the climate and energy economy.

A report from the United Nations Development Programme (UNDP) released this week alongside the fall meetings gets at the heart of this challenge while barely mentioning climate change at all—at least in those words. The report points to what it describes as a “triple shock”: high borrowing costs, the energy price spike, and extreme weather events driven by this year’s El Niño, which is on course to set records.

The policy responses aren’t coded climate policy—and in many cases they’re actively bad for climate efforts. The most common response cited by the report is fuel price support, think of subsidies or fuel tax reductions. An IEA survey cited by the report identified 95 countries with such policies. Explicit fuel subsidies could surpass $1 trillion this year globally, according to the UNDP. But, as the report notes, such an approach isn’t sustainable.

Backlash to higher prices persists even as governments spend to keep citizens happy. In a smaller group of countries, mostly those most dependent on imports, longer-term, structural changes are emerging: investments in renewable energy, energy efficiency, and electrification. Think of subsidies for electric buses or cutting tariffs on solar panels.

But not every country can afford to remake its energy system with structural changes. Heavy indebtedness and high interest rates are key factors. So too is El Niño and broader climate shocks, which make it harder for countries to pay for new infrastructure that reduces exposure to fossil fuel volatility.

The IMF’s World Economic Outlook is similarly light on climate talk. But follow it to its logical conclusion, and it takes the UNDP argument even further. Indebtedness makes it more difficult to invest in AI infrastructure necessary to compete in the emerging economy. It plots countries’ AI preparedness alongside the non-fossil share of their energy supply, suggesting that energy security and the capacity to adopt AI may increasingly intersect. After all, dependence on volatile imported fossil fuels only compounds this challenge given AI’s energy needs.

This emergent growth dynamic comes with important implications. For one, it adds yet another layer to the argument for non-fossil energy in emerging markets. But it also shows how complicated achieving that end will be. Cheap clean tech hardware isn’t enough.