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After arduous late night talks on Wednesday, European Union countries finally agreed a 2040 goal to cut the bloc’s emissions by 90% from 1990 levels, including a contentious concession that would let them buy foreign carbon credits to cover 5%.

Under the deal, which must be approved by the European Parliament, the EU stands to buy 710 million metric tonnes of carbon dioxide equivalent (CO2e) offsets worth about 50 billion euros ($57 billion) during the 2030s, according to an estimate by the Carbon Market Watch campaign group. That could give a huge boost to carbon credits from emissions-reduction projects, which are struggling with shrinking demand amid increased scrutiny of the sector.

Trishant Dev, carbon markets lead at the Centre for Science and Environment (CSE), a Delhi-based think-tank, told Climate Home News that 5% “may seem small compared to the EU’s overall emissions cuts, but in absolute terms it represents a vast volume of offsets, and therefore, massive investments in offset projects”.

On top of the 5% of the EU’s 1990-level net emissions, EU countries may be able to use offsets to cancel out another 5% of their national emissions, increasing the bloc’s wiggle room on meeting its headline climate goals and drawing criticism from some climate campaigners.

Countries split on counting carbon credits

The possibility of using carbon credits was supported by the European Commission and numerous member states including Sweden, Ireland, Poland and Austria.

Poland had pushed for 10% to be eligible for carbon credits, after one senior climate official hailed them in September as “a cost-efficient measure to cut emissions.”

The Netherlands’ representative, meanwhile, opposed using more than 3%, saying that “availability, price and quality remain uncertain”. International credits should just be a “safety net”, he said.

Slovakia’s environment minister also voiced concern about cost, saying the use of credits “may sound attractive but, with an estimated price…about €250 ($288) a tonne, this will not work for all of us”.

    Several other wealthy nations – such as Norway, Switzerland and Singapore – have already said they intend to use or may use some carbon credits to meet their 2035 climate targets.

    But Japan is the only major emitter that has specified how much it wants to buy – 200 million metric tonnes of CO2e by 2040, which at Carbon Market Watch’s assumed price of $70 a ton, would cost $14 billion.

    Many countries – particularly in the Global South – have indicated their interest in selling credits. Thailand, for example, has already sold credits to Switzerland in return for rolling out electric buses in Bangkok, although the integrity of that deal has been questioned.

    Critics say EU should reduce emissions at home

    While EU officials and carbon market supporters defended the bloc’s policy shift on offsets, climate campaigners were mostly critical.

    They said credits are expensive and will not reduce emissions by as much as they are supposed to, accusing the EU of dodging its responsibility as a historically large polluter to reduce the bloc’s emissions domestically.

    Fabiola de Simone, policy officer at Carbon Market Watch, told Climate Home News the EU’s climate target and the offsets were an “international embarrassment” for the EU which will mean “way more emissions than science says you should do”.

    Zimbabwe forest carbon megaproject generated millions of junk credits

    “There is less of an incentive for member states to reach their national obligations after 2030 because they know that they could potentially rely on international credits up to 5%,” de Simone said.

    Pedro Martins Barata, who works on carbon market integrity for the Environmental Defense Fund, called the flexibility in the EU’s target “disappointing”.

    But, he said, the EU could use its clout as a dominant buyer to promote high standards for credits, such as environmental safeguards in offset methodologies.

    “Planet doesn’t care where we cut emissions”

    Carbon market advocates say it does not matter where in the world emissions reductions take place, that reducing emissions with offsets can be cheaper than cutting them directly and that developing countries can benefit from the money and other support they receive by selling credits.

    “The planet doesn’t care where we reduce emissions,” EU climate commissioner Wopke Hoekstra told a press conference on Wednesday, adding that the 5% quota for offsets was optional.

    Ukrainian scientist Olga Gassan-Zade, a member of the supervisory body of the Paris Agreement’s new Article 6.4 carbon market, told Climate Home News that without demand for credits – like that coming from the EU – international carbon markets would fail.

    That would be bad, she said, because “it is maybe hard to see from the Global North, but the developing world lives in a different dimension”. “International markets are not just about finance but are also about technology transfer, knowledge transfer, training of climate change professionals [and] equity,” she added.

    From Delhi, CSE’s Dev said carbon markets have often enriched intermediaries rather than supporting genuine emissions cuts. “These funds must therefore cover the true cost of mitigation, ensuring that communities are not short-changed or made to subsidise Europe’s continued emissions,” he said.

    The post EU’s new climate target lines up multibillion-dollar boost for carbon markets appeared first on Climate Home News.

    EU’s new climate target lines up multibillion-dollar boost for carbon markets

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    On the Farm, the Hidden Climate Cost of America’s Broken Health Care System

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    American farmers are drowning in health insurance costs, while their German counterparts never worry about medical bills. The difference may help determine which country’s small farms are better prepared for a changing climate.

    Samantha Kemnah looked out the foggy window of her home in New Berlin, New York, at the 150-acre dairy farm she and her husband, Chris, bought last year. This winter, an unprecedented cold front brought snowstorms and ice to the region.

    On the Farm, the Hidden Climate Cost of the Broken U.S. Health Care System

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    A Little-Used Maneuver Could Mean More Drilling and Mining in Southern Utah’s Redrock Country

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    Two Utah Congress members have introduced a resolution that could end protections for Grand Staircase-Escalante National Monument. Conservation groups worry similar maneuvers on other federal lands will follow.

    Lawmakers from Utah have commandeered an obscure law to unravel protections for the Grand Staircase-Escalante National Monument, potentially delivering on a Trump administration goal of undoing protections for public conservation lands across the country.

    A Little-Used Maneuver Could Mean More Drilling and Mining in Southern Utah’s Redrock Country

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    Heatwaves driving recent ‘surge’ in compound drought and heat extremes

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    Drought and heatwaves occurring together – known as “compound” events – have “surged” across the world since the early 2000s, a new study shows. 

    Compound drought and heat events (CDHEs) can have devastating effects, creating the ideal conditions for intense wildfires, such as Australia’s “Black Summer” of 2019-20 where bushfires burned 24m hectares and killed 33 people.

    The research, published in Science Advances, finds that the increase in CDHEs is predominantly being driven by events that start with a heatwave.

    The global area affected by such “heatwave-led” compound events has more than doubled between 1980-2001 and 2002-23, the study says.

    The rapid increase in these events over the last 23 years cannot be explained solely by global warming, the authors note.

    Since the late 1990s, feedbacks between the land and the atmosphere have become stronger, making heatwaves more likely to trigger drought conditions, they explain.

    One of the study authors tells Carbon Brief that societies must pay greater attention to compound events, which can “cause severe impacts on ecosystems, agriculture and society”.

    Compound events

    CDHEs are extreme weather events where drought and heatwave conditions occur simultaneously – or shortly after each other – in the same region.

    These events are often triggered by large-scale weather patterns, such as “blocking” highs, which can produce “prolonged” hot and dry conditions, according to the study.

    Prof Sang-Wook Yeh is one of the study authors and a professor at the Ewha Womans University in South Korea. He tells Carbon Brief:

    “When heatwaves and droughts occur together, the two hazards reinforce each other through land-atmosphere interactions. This amplifies surface heating and soil moisture deficits, making compound events more intense and damaging than single hazards.”

    CDHEs can begin with either a heatwave or a drought.

    The sequence of these extremes is important, the study says, as they have different drivers and impacts.

    For example, in a CDHE where the heatwave was the precursor, increased direct sunshine causes more moisture loss from soils and plants, leading to a drought.

    Conversely, in an event where the drought was the precursor, the lack of soil moisture means that less of the sun’s energy goes into evaporation and more goes into warming the Earth’s surface. This produces favourable conditions for heatwaves.

    The study shows that the majority of CDHEs globally start out as a drought.

    In recent years, there has been increasing focus on these events due to the devastating impact they have on agriculture, ecosystems and public health.

    In Russia in the summer of 2010, a compound drought-heatwave event – and the associated wildfires – caused the death of nearly 55,000 people, the study notes.

    Saint Basil's Cathedral, on Red Square, in Moscow, was affected by smog during the fires in Russia in the summer of 2010.
    Saint Basil’s Cathedral, on Red Square, in Moscow, was affected by smog during the fires in Russia in the summer of 2010. Credit: ZUMA Press, Inc. / Alamy Stock Photo

    The record-breaking Pacific north-west “heat dome” in 2021 triggered extreme drought conditions that caused “significant declines” in wheat yields, as well as in barley, canola and fruit production in British Columbia and Alberta, Canada, says the study.

    Increasing events

    To assess how CDHEs are changing, the researchers use daily reanalysis data to identify droughts and heatwaves events. (Reanalysis data combines past observations with climate models to create a historical climate record.) Then, using an algorithm, they analyse how these events overlap in both time and space.

    The study covers the period from 1980 to 2023 and the world’s land surface, excluding polar regions where CDHEs are rare.

    The research finds that the area of land affected by CDHEs has “increased substantially” since the early 2000s.

    Heatwave-led events have been the main contributor to this increase, the study says, with their spatial extent rising 110% between 1980-2001 and 2002-23, compared to a 59% increase for drought-led events.

    The map below shows the global distribution of CDHEs over 1980-2023. The charts show the percentage of the land surface affected by a heatwave-led CDHE (red) or a drought-led CDHE (yellow) in a given year (left) and relative increase in each CDHE type (right).

    The study finds that CDHEs have occurred most frequently in northern South America, the southern US, eastern Europe, central Africa and south Asia.

    Charts showing spatial and temporal occurrences over study period
    Spatial and temporal occurrence of compound drought and heatwave events over the study period from 1980 to 2023. The map (top) shows CDHEs around the world, with darker colours indicating higher frequency of occurrence. The chart in the bottom left shows how much land surface was affected by a compound event in a given year, where red accounts for heatwave-led events, and yellow, drought-led events. The chart in the bottom right shows the relative increase of each CDHE type in 2002-23 compared with 1980-2001. Source: Kim et al. (2026)

    Threshold passed

    The authors explain that the increase in heatwave-led CDHEs is related to rising global temperatures, but that this does not tell the whole story.

    In the earlier 22-year period of 1980-2001, the study finds that the spatial extent of heatwave-led CDHEs rises by 1.6% per 1C of global temperature rise. For the more-recent period of 2022-23, this increases “nearly eightfold” to 13.1%.

    The change suggests that the rapid increase in the heatwave-led CDHEs occurred after the global average temperature “surpasse[d] a certain temperature threshold”, the paper says.

    This threshold is an absolute global average temperature of 14.3C, the authors estimate (based on an 11-year average), which the world passed around the year 2000.

    Investigating the recent surge in heatwave-leading CDHEs further, the researchers find a “regime shift” in land-atmosphere dynamics “toward a persistently intensified state after the late 1990s”.

    In other words, the way that drier soils drive higher surface temperatures, and vice versa, is becoming stronger, resulting in more heatwave-led compound events.

    Daily data

    The research has some advantages over other previous studies, Yeh says. For instance, the new work uses daily estimations of CDHEs, compared to monthly data used in past research. This is “important for capturing the detailed occurrence” of these events, says Yeh.

    He adds that another advantage of their study is that it distinguishes the sequence of droughts and heatwaves, which allows them to “better understand the differences” in the characteristics of CDHEs.

    Dr Meryem Tanarhte is a climate scientist at the University Hassan II in Morocco, and Dr Ruth Cerezo Mota is a climatologist and a researcher at the National Autonomous University of Mexico. Both scientists, who were not involved in the study, agree that the daily estimations give a clearer picture of how CDHEs are changing.

    Cerezo-Mota adds that another major contribution of the study is its global focus. She tells Carbon Brief that in some regions, such as Mexico and Africa, there is a lack of studies on CDHEs:

    “Not because the events do not occur, but perhaps because [these regions] do not have all the data or the expertise to do so.”

    However, she notes that the reanalysis data used by the study does have limitations with how it represents rainfall in some parts of the world.

    Compound impacts

    The study notes that if CDHEs continue to intensify – particularly events where heatwaves are the precursors – they could drive declining crop productivity, increased wildfire frequency and severe public health crises.

    These impacts could be “much more rapid and severe as global warming continues”, Yeh tells Carbon Brief.

    Tanarhte notes that these events can be forecasted up to 10 days ahead in many regions. Furthermore, she says, the strongest impacts can be prevented “through preparedness and adaptation”, including through “water management for agriculture, heatwave mitigation measures and wildfire mitigation”.

    The study recommends reassessing current risk management strategies for these compound events. It also suggests incorporating the sequences of drought and heatwaves into compound event analysis frameworks “to enhance climate risk management”.

    Cerezo-Mota says that it is clear that the world needs to be prepared for the increased occurrence of these events. She tells Carbon Brief:

    “These [risk assessments and strategies] need to be carried out at the local level to understand the complexities of each region.”

    The post Heatwaves driving recent ‘surge’ in compound drought and heat extremes appeared first on Carbon Brief.

    Heatwaves driving recent ‘surge’ in compound drought and heat extremes

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