Young Leaders are Fighting for Fair Climate Finance

By Camilo Maldonado, Community Solutions Program Fellow

Attending the World Bank and International Monetary Fund (IMF) Annual Meetings in Washington, DC felt like stepping into the beating heart of global finance. For a young Paraguayan professional like me, it was both a career milestone and a chance to engage with world leaders and finance experts tackling urgent issues that affect us all.

This opportunity came through the IREX Community Solutions Program, where I’m currently a fellow, and my practicum with The Climate Reality Project’s Global Youth Programs. From October 21-26, I witnessed firsthand the intersection of economic growth and climate action, and I left with a new perspective on how much work we still have ahead.

As a civil society observer, I was excited to attend panels on critical topics, from economic resilience to sustainable climate finance.

The week started with a Bretton Woods Committee meeting, where Kristalina Georgieva, the managing director of the IMF, and Ajay Banga, the president of the World Bank, set the tone with a compelling discussion on sustainable fiscal reforms. They talked about the importance of the Resilience and Sustainability Trust, an IMF initiative designed to support low-income and vulnerable countries as they adapt to climate change and other challenges.

Sitting there, I thought about how this concept of resilience resonates with so many Global South countries like Paraguay, where climate events like droughts and floods threaten agriculture and people’s livelihoods.

The theme of balancing economic stability with climate responsibility continued at a panel titled “Climate Voices: This Critical Decade – An Update on Global Mitigation Policy.” The panel included Mukhtar Babayev, the COP 29 president-designate, and Simon Stiell, executive secretary of the UNFCCC, both discussing the urgent need to reduce greenhouse gas emissions before we hit an “emissions cliff edge.”

Hearing Babayev emphasize the scale of climate action needed to avoid surpassing the 1.5°C threshold highlighted the importance of pushing for ambitious policies that prioritize people and planet. When I had the chance to speak with Babayev afterward, he shared insights about the upcoming COP 29 summit in Baku, which I’ll also be attending. His optimism about the potential for collective action left me feeling hopeful yet aware of the challenges we face.

Throughout the meetings, one topic kept coming up—climate finance.

Developing nations need support to implement sustainable solutions and transition to clean energy, but current climate finance levels fall far short of what’s required. The $100 billion annual target that developed countries committed to years ago was only recently met in 2022, and it’s clear that this number alone doesn’t match the scale of the crisis.

Climate finance isn’t just about money—it’s about justice. If we’re going to ask developing nations to cut emissions and transition to clean energy, they need meaningful financial support to make this possible.

For Paraguay, the stakes are high. As a developing country with an economy largely dependent on agriculture, the impacts of climate change have already started to alter daily life. Droughts affect crop yields, and unpredictable weather patterns complicate farming, which is a cornerstone of our economy.

I discussed some of these challenges with Paraguay’s minister of economy and finance, Carlos Fernández Valdovinos, and Foreign Affairs Minister Rubén Ramírez Lezcano, who were also attending the meetings. They shared their focus on attracting investments for sustainable projects and stressed the need for Paraguay to secure funding for climate adaptation. Being part of these conversations reaffirmed the importance of advocating for the Global South’s voice in these spaces.

But there’s a paradox at play.

While multilateral development banks, like the the World Bank,discuss climate finance, they continue to invest in fossil fuel projects, often in the very countries they claim to be supporting in the fight against climate change. The contradiction is hard to ignore. These institutions hold the power to make a transformative impact by prioritizing clean energy investments, yet they frequently direct funds toward fossil fuel projects that contradict their climate goals.

My experience with Climate Reality has taught me how every dollar spent on fossil fuels is a dollar that could have supported renewable energy solutions. It’s a frustrating reality, and it’s why I believe so strongly in Climate Reality’s mission to push for a rapid transition to clean energy.

As I reflected on these sessions, it became clear to me how essential it is for young people to be part of these conversations. We bring a sense of urgency and long-term vision that can sometimes be lacking in high-level finance discussions focused on immediate economic outcomes. Young voices have the power to shift these priorities and advocate for a fossil-free future that ensures justice for the communities most affected by climate change.

However, it’s not easy for youth from the Global South to access these forums. Increasing youth representation in these spaces would bring in perspectives that drive leaders to think beyond short-term profits and toward sustainable futures.

For me, the experience of attending the World Bank and IMF meetings underscored how closely linked economic development and climate action really are. These two things can’t be separated.

Financial institutions have a critical role to play in either accelerating or delaying the transition to a sustainable world. We need to push them to take their responsibility seriously and align their investments with a fossil-free future.

Leaving Washington, DC, I felt both inspired and challenged. The path to a climate-resilient future is clear, but it demands a willingness to break away from fossil fuel dependencies and prioritize investments in sustainability.

As young leaders and advocates, we have a role to play in holding these institutions accountable and ensuring they act for the common good. This experience reinforced my commitment to this work, and I look forward to seeing where these conversations lead at COP 29 and beyond.

If you share this vision, I encourage you to join us by adding your name to The Climate Reality Project’s action and send a message to world leaders, demanding that they phase out fossil fuels and commit to clean energy. Every signature counts, adding strength to our call for a sustainable, just future. Sign the petition here.