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Governments have, once again, failed to agree on a timeline for the Intergovernmental Panel on Climate Change (IPCC) seventh assessment cycle (AR7), two years into the process.

Last week, more than 300 scientists and government officials from around the world met in Lima, Peru for the 63rd session of the IPCC (IPCC-63).

According to the Earth Negotiations Bulletin (ENB), reporting exclusively from inside the four-day meeting, the closed-door talks were characterised by “fraught deliberations” where “once-routine” issues became “deeply controversial and time-consuming”.

Countries reached a compromise on the content of a methodology report on carbon dioxide removal technologies – a sticking point at the last IPCC meeting.

However, the meeting marked the fourth time in a row that delegates could not reach consensus on the timings of the IPCC’s influential three-part assessment report, after deadlocked talks in Hangzhou, China earlier this year and Sofia, Bulgaria and Istanbul, Turkey in 2024.

Observers told Carbon Brief of an atmosphere of “deepening mistrust” at the meeting, as emerging economies clashed with a coalition of small-island states and developed nations amid repeated accusations of “micromanagement”.

IPCC chair Prof Jim Skea reportedly lamented in his closing remarks that “as a category five hurricane [Hurricane Melissa] swept through the Carribean, IPCC-63 was deliberating on pronouns and footnotes”.

One former IPCC author tells Carbon Brief that certain countries’ opposition to agreeing a “deadline for AR7” was a “clear tactic for playing down the importance of IPCC climate science in decision-making on climate change”.

Historic splits

Each assessment cycle, the IPCC publishes three “working group” reports that focus on climate science (WG1), impacts and adaptation (WG2) and mitigation (WG3). It also publishes a small number of special reports and methodology reports.

The IPCC’s current assessment cycle has been underway since July 2023, with the authors for its three headline reports confirmed earlier this year.

It is atypical for the IPCC to have not yet agreed when these reports would be published so far into an assessment cycle. The workplans for AR5 and AR6 were “agreed with little difficulty”, the ENB notes in its summary of the event, adding:

“The debate about the timeline is unprecedented in the history of the IPCC.”

There are, broadly speaking, two camps in the debate around timelines for AR7.

The first wants a timeline that would align the publication of the IPCC’s three headline reports, plus special and methodology reports, with the second “global stocktake” (GST).

The GST is an appraisal of global progress on tackling climate change, which takes place every five years under the Paris Agreement. The second GST is scheduled to conclude at COP33 at the end of 2028, so that its findings can inform the fourth round of national climate pledges due a few years later.

Other countries, however, have advocated for a longer timeline. Among their concerns are the potential burden reviewing reports back-to-back could place on more resource-strapped countries, as well as whether the current schedule offers enough time for gaps in scientific literature to be filled.

As proceedings kicked off in Peru, the IPCC proposed a timeline for AR7 which would see all three of its headline reports published in 2028, with approval sessions earmarked for May, June and July of that year for the three working group reports.

WGI co-chair Dr Robert Vautard noted that the ongoing uncertainty on timelines was stressful for both the authors of reports, as well as for scientists wishing to submit research for the cycle, according to the ENB.

The delegation from Antigua and Barbuda, meanwhile, noted that agreement on the timeline is typically procedural and “not negotiated by governments”. It also said the proposed cycle length of around six-and-a-half years was consistent with the IPCC’s last two assessment cycles.

Aerial view of a plenary event during an IPCC event.
Aerial view of a plenary event at IPCC-63. Credit: IISD/ENB – Anastasia Rodopoulou

‘Compromise’ timeline

Throughout the four-day meeting, positions on both sides on the debate around AR7 remained “entrenched”, the ENB notes.

A “majority” of countries were in favour of a workplan which would align AR7 with the GST, the ENB says. However, this group was opposed by a “smaller, but growing” number of countries in favour of a less compressed timeline.

Early on in proceedings, for example, Kenya described a slower timeline as a “great equaliser” and said a more compressed timeline did not favour authors, nor the coordinating agencies, from developing countries, ENB says.

Meanwhile, India argued that the GST was “extraneous” to the IPCC and said there were no formal IPCC rules about aligning with the stocktaking exercise, according to ENB. Algeria, China, Libya, India, Russia, Saudi Arabia and South Africa also reportedly voiced their opposition to the IPCC’s proposals.

Inclusivity concerns were also cited by countries in favour of the IPCC’s timeline. For example, the small-island state of Vanuatu reportedly said that delaying the reports would deprive countries of important scientific information ahead of key international meetings.

Antigua and Barbuda, Australia, the Bahamas, France, the Gambia, Korea and Nepal were among the countries to speak up in favour of the IPCC’s proposed timeline, according to ENB.

Simon Steill, executive director of the UN Framework Convention on Climate Change (UNFCCC), urged countries to agree on a timeline which aligned AR7 with the GST. In his opening address to the Lima meeting, he said:

“Taken together, the reports will be indispensable and I will continue to urge all countries to agree on timelines that ensure all three assessments inform the second global stocktake.

“Because the stocktake is not just a technical exercise. It is a crucial moment for the world to recognise the state of play, reaffirm its commitment to Paris and respond with action and support at the pace and scale that science demands.”

The ENB reports that a contact group was set up on Monday to work through the issue, co-chaired by Brazil and Denmark.

On Tuesday, a revised timeline for AR7 was presented by WG1 co-chair Dr Xiaoye Zhang and WG2 co-chair Dr Bart Van den Hurk, which took into account deliberations from the contact group, the ENB says. It set out a number of changes to the initial timeline, concentrated at the end of the cycle so as to address government concerns while limiting impacts on report authors.

This included spacing out approval sessions – where the final reports are signed off line by line – so that WG2 would be held in July 2028 (instead of June) and WG3 in September (instead of July). It also set out an extension of expert and government review periods for report drafts.

Discussion of the revised schedule was deferred until Wednesday at the request of Ghana, Kenya, India, Russia and Saudi Arabia.

As talks resumed, a number of emerging-economy countries spoke out against the updated timeline, including Algeria, Jordan, Morocco, Tunisia and Zimbabwe, ENB notes.

Russia said that aligning the work of the IPCC with the UNFCCC would send a “negative signal”, ENB says, whereas China suggested that the timeline would put “pressure” on developing countries. South Africa similarly argued that the timeline would “harm” the inclusivity and geographic representativeness of the reports, according to ENB.

Among the countries in favour of the revised timeline were small-island developing states Haiti, Jamaica, Sao Tome and Principe and Vanuatu, as well developed economies Australia, Finland, Italy, Ireland, New Zealand and the UK, ENB says.

Grenada is quoted by ENB as describing the new timeline constituted a “compromise of a compromise”. The country also emphasised that it was supported by a majority of countries across regions and development levels, ENB says.

At the request of certain members of the contact group, WG1’s Vautard presented a visualisation of the new timeline for all three reports and the special report on cities on Wednesday evening. The graphic – seen by Carbon Brief – plots the timeline for “first-order” draft review (by experts), “second-order” draft review (by governments and experts), final government review and panel approval for each report.

Vautard noted that first-order draft reviews of the WG1 and WG2 reports overlapped “intentionally”, to allow experts to see both drafts at once.

(The request for a visualisation prompted accusations – not for the first time at the meeting – that certain countries were drawing the IPCC process into “micromanagement”, the ENB notes.)

The visualisation was followed by a new wave of objections from countries, who argued against a timeline where review periods for different reports overlapped with each other and UNFCCC meetings, according to ENB.

Among them were Russia and China, who argued that AR7 should be extended to 2029, ENB says. (Russia reportedly said it would “consider a plan” to deliver the overarching synthesis report by December 2029 – if its concerns were addressed.)

On the other hand, Antigua and Barbuda argued that avoiding any overlaps would not be feasible and expressed concerns that certain countries’ interventions seemed to be aimed “more at delay than progress”, the ENB notes.

Skea said he “struggled to see” why consecutive and overlapping reviews were a problem, according to the ENB. He noted that the IPCC rulebook states that panel and working group sessions should be scheduled to coordinate with, “to the extent possible, with other related international meetings”.

Lindsey Fielder-Cook, interim deputy director and the representative for climate change at the Quaker UN Office, was an observer to the talks. She tells Carbon Brief that “blocking” governments had “serious and genuine concerns” around the lack of equity inclusion in climate modelling and a failure of co-chairs to “sufficiently engage” with their proposals.

However, she says these countries also cited “structural” concerns around timing and capacity that “could be overcome” and speculated that these were “used to cover [for] what the countries do not say publicly”. She adds:

“For example, concerns include capacity and vacation times during [report] review times – which were not a concern raised by small-island developing states and many least-developed countries with even less capacity, [as well as concerns about] developing country scientific input, which the IPCC has made genuine efforts to improve.”

On Thursday evening, the facilitators of the contact group reported that no consensus had been reached, the ENB notes. Consequently, the IPCC agreed to – once again – defer decisions on the rest of the workplan to a future session.

Countries agreed that working groups should press on with activities and author meetings detailed in the 2026 budget.

(This outcome – where the IPCC plans in annual increments – had been described earlier in the week by Skea as the “worst option”. Nepal, meanwhile, said this result would “harm the IPCC’s legitimacy”.)

Routine issues ‘have become controversial’

This is now the fourth meeting in a row – following Istanbul, Sofia and Hangzhou – where the timeline for producing, reviewing and publishing the IPCC’s reports in AR7 has not been agreed.

In its analysis of the “fraught negotiations” in Lima, the ENB notes that “deep divisions” on the timeline and other procedural issues have “plagued the IPCC during the first two years of its seventh assessment cycle”. It added:

“Issues that were once routine have become deeply controversial and time-consuming.”

The failure to approve the timeline for AR7 was not the only issue on which countries were unable to agree. Approval of the official summaries of the two preceding IPCC meetings was also deferred, after certain countries said they could not sign off on the drafts.

After the previous IPCC meeting in Hangzhou, Skea told Carbon Brief that negotiations over just the outlines of the three AR7 working group reports “had some of the quality of an approval session”, where a finished report is scrutinised line by line.

In Lima, Skea “remarked that these disagreements [over the timeline] are unprecedented so early in an assessment cycle”, the ENB reports.

Throughout the meeting, the ENB records multiple instances of countries voicing their concerns about the implications for the work of the IPCC.

A selection of interventions by country delegations at the IPCC’s Lima meeting, as reported in the ENB’s meeting summary. ENB (2025)
A selection of interventions by country delegations at the IPCC’s Lima meeting, as reported in the ENB’s meeting summary. ENB (2025)

In its analysis of the meeting, the ENB says these concerns reflect “growing tensions within the panel, as “delegates expressed increasing frustration with what they see as inflexible positions”.

The ENB also notes:

“References made in this session to disrespectful interactions among delegates are atypical in the IPCC context and raise concerns that trust the basis for compromise and flexibility may be dwindling in some parts of the IPCC.”

(The IPCC has not responded to Carbon Brief’s multiple interview requests.)

In her observations, Fielder-Cook tells Carbon Brief that the meeting was “actually more relaxed” than recent IPCC sessions. This was “in part due to the gentle and generous hosting of Peru and in part to a sense of resignation on the timeline”.

Nonetheless, she says, the mood in the room was of “concern for the IPCC and its reputation, for its ability to protect science from intensifying political influence”, as well as “concern over the increasing political efforts to influence the scientific output”. She adds:

“While the work will continue, IPCC authors working voluntarily have no clear timeline on their voluntary commitment.”

Prof Lisa Schipper, a professor of development geography at the University of Bonn and IPCC AR6 author, tells Carbon Brief:

“Some countries refusing to set a deadline for the AR7 is a clear tactic for playing down the importance of IPCC climate science in decision-making on climate change. And this will be a problem if the report is done and cannot be approved and used by governments.”

Nonetheless, she adds, “there is plenty of good science being produced and governments are not in any way restricted from using this science in their decision-making”.

Ultimately, though, “we do need a decision on the AR7 timeline”, she says:

“No other single report provides the same evaluation and assessment of this collected knowledge or is able to give an authoritative overview of what we know, what we don’t know, and which future is more likely under different conditions.”

Consensus on CDR

Earlier this year in Hangzhou, governments failed to reach consensus on the outline for a methodology report on carbon dioxide removal (CDR) and carbon capture, utilisation and storage (CCUS) technologies, which is slated for publication in 2027.

This was largely due to disagreements around chapter seven in the proposed outline, a section that would focus on carbon removals from oceans, lakes and rivers.

On the first day in Lima, Takeshi Enoki – a co-chair of the IPCC task force on national greenhouse gas inventories (TFI), which is responsible for producing the report – introduced the outline and workplan for the methodology report.

Enoki explained that discussions about the report would focus on the table of contents and “particularly the proposed volume seven on the direct removal of CO2 from waterbodies”, according to ENB.

Fielder-Cook – the observer from the Quaker UN Office – tells Carbon Brief there was “significant concern” across a “range of developed and developing countries” over language in the initial methodology report outline that “could allow harmful marine geoengineering”.

Antigua and Barbuda, France and Germany were among the countries who opposed the inclusion of a seventh chapter. They cited concerns related to the “effectiveness, scalability, legality and environmental impacts” of marine CDR, the ENB notes.

Some of these countries suggested that the IPCC adopt the outline for “volumes one to six”, “with the possibility of adding to these volumes later”, the ENB says.

However, Saudi Arabia said that all “expert-recognised CDR and CCUS technologies, including marine-based technologies, must be considered”. It called for an outline that “encompasses the full spectrum of these technologies”.

ENB notes that the “point of contention” was whether the IPCC should develop methodologies for measuring and assessing the impacts of all CDR technologies. Some countries argued that the report should be limited to technologies that are “environmentally safe”, while others argued that it is “not the responsibility of a TFI methodology report to make that judgment”.

Delegates huddle during an IPCC event. Credit: IISD/ENB – Anastasia Rodopoulou
Delegates huddle to discuss the methodology report on CDR and CCUS at IPCC-63. Credit: IISD/ENB – Anastasia Rodopoulou

Skea set up a contact group on the first day of the meeting, facilitated by China and Turkey, to work on the outline of the report.

The following days saw “significant discussion” within the contact group, before delegates reconvened in plenary on Thursday to continue discussing the report, according to the ENB.

Delegates were eventually able to reach a compromise on the outline by agreeing to remove the chapter on direct removal of CO2 from waterbodies from the plan, the ENB reports.

Meanwhile, delegates agreed to hold an expert meeting on alkalinity enhancement – the addition of alkaline substances to seawater, which allows the ocean to take in more carbon from the atmosphere – and direct ocean capture. This meeting will be co-organised by the TFI and the three IPCC working groups.

Funding ‘shortfall’

At the Lima meeting, countries approved the IPCC’s budgets for 2025 and 2026, but also noted “with concern the significantly reduced cash balance” of the IPCC trust fund and the “accelerating decline” in the level of annual voluntary contributions from countries and other organisations, says the ENB.

The IPCC is funded by its parent organisations, the World Meteorological Organization (WMO) and UN Environment Programme (UNEP), along with voluntary contributions from member governments and the UNFCCC.

These contributions feed into the IPCC “trust fund”, which is used to pay for the work of the IPCC. In addition, member countries provide “in-kind” support, such as offering facilities for meetings and hosting the “technical support units” for each working group.

By the end of June, contributions in 2025 amounted to 1.2m Swiss francs (£1.1m) – significantly down compared to the annual totals of previous years. Compared to spending of 2.9m Swiss francs (£2.8m), this leaves a shortfall of around 1.7m Swiss francs (£1.6m) for 2025.

At the start of this year, the balance of the trust fund stood at 17.8m Swiss francs (£16.9m).

The chart below shows the direct contributions from countries and organisations throughout the IPCC’s history and up to the end of June this year.


Chart showing the largest direct contributors to the IPCC since its inception in 1988, with the US (red bars), European Union (dark blue) and UNFCCC/WMO/UNEP (mid blue) highlighted. Grey bars show all other contributors combined. Figures for 2025 are January to June inclusive. Figures for 1988-2003 are reported per two years, so these totals have been divided equally between each year. Source: IPCC (2025) and (2010). Contributions have been adjusted, as per IPCC footnotes, so they appear in the year they are received, rather than pledged.

The largest direct contributions to the IPCC trust fund so far this year have come from Norway (244,000 Swiss francs, or £230,000), the UNFCCC (230,000 Swiss francs, or £220,000), Canada (210,000 Swiss francs, or £200,000) and the WMO (125,000 Swiss francs, or £118,000).

Other countries to contribute this year include Australia, New Zealand, Pakistan, Peru, South Korea, Sweden, Trinidad and Tobago, and 213 Swiss francs (£200) from Cambodia.

The US – which has provided 30% of the IPCC’s direct contributions throughout its history – has not made a contribution so far this year.

In its final decision, the panel invited “member countries to make their annual voluntary contributions to the IPCC trust fund and, if possible, to increase [them]”, says the ENB.

Member countries also discussed a proposal from the WMO for the IPCC to pay 300,000 Swiss francs (£280,000) for administrative support that was previously provided as an in-kind contribution.

Given the “deteriorating financial situation” of the IPCC, the ENB reports that a decision on this proposal was deferred – not to the next meeting, but the one after that.

Progress reports and next steps

The Lima meeting was also an opportunity for each IPCC working group to update the rest of the delegates on progress since the last meeting.

All working groups discussed the process of selecting authors for the IPCC’s upcoming seventh assessment, highlighting their efforts to be “inclusive”.

For example, the WG3 co-chair said 52% of the selected WG3 authors are from developing countries, 40% are female and 59% are new to the IPCC.

A WG2 co-chair also reported that six chapter scientists had been selected from more than 1,320 applications for the special report on cities slated for publication in March 2027.

In addition, the WG1 co-chairs outlined their preparations for the first joint-lead author meeting for their assessment report, which will be held in December 2025.

They also laid out plans for a cross-working group “expert meeting” on “Earth system high impact events, tipping points and their consequences”, co-sponsored by the World Climate Research Programme (WCPR).

The meeting also granted “observer status” to 20 new organisations, allowing them to attend IPCC sessions and nominate experts as authors or workshop leads.

The IPCC confirmed that its next meeting will be held in Bangkok, Thailand over 24-27 March 2026.

Skea announced that workshops on “diverse knowledge systems and methods of assessment” will be held in February 2026 at the University of Reading in the UK.

Skea also proposed an expert meeting to “support the transition from conceptual design to technical implementation” of the AR7 WG1 and WG2 interactive atlases.

The atlases are interactive online tools that allow users to explore much of the data underpinning the working group reports.

The meeting was approved, subject to agreement on the budget. It is slated to take place between April and June 2026.

The post Ongoing failure to agree AR7 timeline is ‘unprecedented’ in IPCC history appeared first on Carbon Brief.

Ongoing failure to agree AR7 timeline is ‘unprecedented’ in IPCC history

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The 2026 budget test: Will Australia break free from fossil fuels?

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In 2026, the dangers of fossil fuel dependence have been laid bare like never before. The illegal invasion of Iran has brought pain and destruction to millions across the Middle East and triggered a global energy crisis impacting us all. Communities in the Pacific have been hit especially hard by rising fuel prices, and Australians have seen their cost-of-living woes deepen.

Such moments of crisis and upheaval can lead to positive transformation. But only when leaders act with courage and foresight.

There is no clearer statement of a government’s plans and priorities for the nation than its budget — how it plans to raise money, and what services, communities, and industries it will invest in.

As we count down the days to the 2026-27 Federal Budget, will the Albanese Government deliver a budget for our times? One that starts breaking the shackles of fossil fuels, accelerates the shift to clean energy, protects nature, and sees us work together with other countries towards a safer future for all? Or one that doubles down on coal and gas, locks in more climate chaos, and keeps us beholden to the whims of tyrants and billionaires.

Here’s what we think the moment demands, and what we’ll be looking out for when Treasurer Jim Chalmers steps up to the dispatch box on 12 May.

1. Stop fuelling the fire
2. Make big polluters pay
3. Support everyone to be part of the solution
4. Build the industries of the future
5. Build community resilience
6. Be a better neighbour
7. Protect nature

1. Stop fuelling the fire

Action Calls for a Transition Away From Fossil Fuels in Vanuatu. © Greenpeace
The community in Mele, Vanuatu sent a positive message ahead of the First Conference on Transitioning Away from Fossil Fuels. © Greenpeace

In mid-April, Pacific governments and civil society met to redouble their efforts towards a Fossil Fuel Free Pacific. Moving beyond coal, oil and gas is fundamental to limiting warming to 1.5°C — a survival line for vulnerable communities and ecosystems. And as our Head of Pacific, Shiva Gounden, explained, it is “also a path of liberation that frees us from expensive, extractive and polluting fossil fuel imports and uplifts our communities”.

Pacific countries are at the forefront of growing global momentum towards a just transition away from fossil fuels, and it is way past time for Australia to get with the program. It is no longer a question of whether fossil fuel extraction will end, but whether that end will be appropriately managed and see communities supported through the transition, or whether it will be chaotic and disruptive.

So will this budget support the transition away from fossil fuels, or will it continue to prop up coal and gas?

When it comes to sensible moves the government can make right now, one stands out as a genuine low hanging fruit. Mining companies get a full rebate of the excise (or tax) that the rest of us pay on diesel fuel. This lowers their operating costs and acts as a large, ongoing subsidy on fossil fuel production — to the tune of $11 billion a year!

Greenpeace has long called for coal and gas companies to be removed from this outdated scheme, and for the billions in savings to be used to support the clean energy transition and to assist communities with adapting to the impacts of climate change. Will we see the government finally make this long overdue change, or will it once again cave to the fossil fuel lobby?

2. Make big polluters pay

Activists Disrupt Major Gas Conference in Sydney. © Greenpeace
Greenpeace Australia Pacific activists disrupted the Australian Domestic Gas Outlook conference in Sydney with the message ‘Gas execs profit, we pay the price’. © Greenpeace

While our communities continue to suffer the escalating costs of climate-fuelled disasters, our Government continues to support a massive expansion of Australia’s export gas industry. Gas is a dangerous fossil fuel, with every tonne of Australian gas adding to the global heating that endangers us all.

Moreover, companies like Santos and Woodside pay very little tax for the privilege of digging up and selling Australians’ natural endowment of fossil gas. Remarkably, the Government currently raises more tax from beer than from the Petroleum Resource Rent Tax (PRRT) — the main tax on gas profits.

Momentum has been building to replace or supplement the PRRT with a 25% tax on gas exports. This could raise up to $17 billion a year — funds that, like savings from removing the diesel tax rebate for coal and gas companies, could be spent on supporting the clean energy transition and assisting communities with adapting to worsening fires, floods, heatwaves and other impacts of climate change.

As politicians arrive in Canberra for budget week, they will be confronted by billboards calling for a fair tax on gas exports. The push now has the support of dozens of organisations and a growing number of politicians. Let’s hope the Treasurer seizes this rare window for reform.

3. Support everyone to be part of the solution

As the price of petrol and diesel rises, electric vehicles (EVs) are helping people cut fuel use and save money. However, while EV sales have jumped since the invasion of Iran sent fuel prices rising, they still only make up a fraction of total new car sales. This budget should help more Australians switch to electric vehicles and, even more importantly, enable more Australians to get around by bike, on foot, and on public transport. This means maintaining the EV discount, investing in public and active transport, and removing tax breaks for fuel-hungry utes and vans.

Millions of Australians already enjoy the cost-saving benefits of rooftop solar, batteries, and getting off gas. This budget should enable more households, and in particular those on lower incomes, to access these benefits. This means maintaining the Cheaper Home Batteries Program, and building on the Household Energy Upgrades Fund.

4. Build the industries of the future

Protest of Woodside and Drill Rig Valaris at Scarborough Gas Field in Western Australia. © Greenpeace / Jimmy Emms
Crew aboard Greenpeace Australia Pacific’s campaigning vessel the Oceania conducted a peaceful banner protest at the site of the Valaris DPS-1, the drill rig commissioned to build Woodside’s destructive Burrup Hub. © Greenpeace / Jimmy Emms

If we’re to transition away from fossil fuels, we need to be building the clean industries of the future.

No state is more pivotal to Australia’s energy and industrial transformation than Western Australia. The state has unrivaled potential for renewable energy development and for replacing fossil fuel exports with clean exports like green iron. Such industries offer Western Australia the promise of a vibrant economic future, and for Australia to play an outsized positive role in the world’s efforts to reduce emissions.

However, realising this potential will require focussed support from the Federal Government. Among other measures, Greenpeace has recommended establishing the Australasian Green Iron Corporation as a joint venture between the Australian and Western Australian governments, a key trading partner, a major iron ore miner and steel makers. This would unite these central players around the complex task of building a large-scale green iron industry, and unleash Western Australia’s potential as a green industrial powerhouse.

5. Build community resilience

Believe it or not, our Government continues to spend far more on subsidising fossil fuel production — and on clearing up after climate-fuelled disasters — than it does on helping communities and industries reduce disaster costs through practical, proven methods for building their resilience.

Last year, the Government estimated that the cost of recovery from disasters like the devastating 2022 east coast floods on 2019-20 fires will rise to $13.5 billion. For contrast, the Government’s Disaster Ready Fund – the main national source of funding for disaster resilience – invests just $200 million a year in grants to support disaster preparedness and resilience building. This is despite the Government’s own National Emergency Management Agency (NEMA) estimating that for every dollar spent on disaster risk reduction, there is a $9.60 return on investment.

By redirecting funds currently spent on subsidising fossil fuel production, the Government can both stop incentivising climate destruction in the first place, and ensure that Australian communities and industries are better protected from worsening climate extremes.

No communities have more to lose from climate damage, or carry more knowledge of practical solutions, than Aboriginal and Torres Strait Islander peoples. The budget should include a dedicated First Nations climate adaptation fund, ensuring First Nations communities can develop solutions on their own terms, and access the support they need with adapting to extreme heat, coastal erosion and other escalating challenges.

6. Be a better neighbour

The global response to climate change depends on the adequate flow of support from developed economies like Australia to lower income nations with shifting to clean energy, adapting to the impacts of climate change, and addressing loss and damage.

Such support is vital to building trust and cooperation, reducing global emissions, and supporting regional and global security by enabling countries to transition away from fossil fuels and build greater resilience.

Despite its central leadership role in this year’s global climate negotiations, our Government is yet to announce its contribution to international climate finance for 2025-2030. Greenpeace recommends a commitment of $11 billion for this five year period, which is aligned with the global goal under the Paris Agreement to triple international climate finance from current levels.
This new commitment should include additional funding to address loss and damage from climate change and a substantial contribution to the Pacific Resilience Facility, ensuring support is accessible to countries and communities that need it most. It should also see Australia get firmly behind the vision of a Fossil Fuel Free Pacific.

7. Protect nature

Rainforest in Tasmania. © Markus Mauthe / Greenpeace
Rainforest of north west Tasmania in the Takayna (Tarkine) region. © Markus Mauthe / Greenpeace

There is no safe planet without protection of the ecosystems and biodiversity that sustain us and regulate our climate.

Last year the Parliament passed important and long overdue reforms to our national environment laws to ensure better protection for our forests and other critical ecosystems. However, the Government will need to provide sufficient funding to ensure the effective implementation of these reforms.

Greenpeace has recommended $500 million over four years to establish the National Environment Agency — the body responsible for enforcing and monitoring the new laws — and a further $50 million to Environment Information Australia for providing critical information and tools.

Further resourcing will also be required to fulfil the crucial goal of fully protecting 30% of Australian land and seas by 2030. This should include $1 billion towards ending deforestation by enabling farmers and loggers to retool away from destructive practices, $2 billion a year for restoring degraded lands, $5 billion for purchasing and creating new protected areas, and $200 million for expanding domestic and international marine protected areas.

Conclusion

This is not the first time that conflict overseas has triggered an energy crisis, or that a budget has been preceded by a summer of extreme weather disasters, highlighting the urgent need to phase out fossil fuels. What’s different in 2026 is the availability of solutions. Renewable energy is now cheaper and more accessible than ever before. Global momentum is firmly behind the transition away from fossil fuels. The Albanese Government, with its overwhelming majority, has the chance to set our nation up for the future, or keep us stranded in the past. Let’s hope it makes some smart choices.

The 2026 budget test: Will Australia break free from fossil fuels?

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What fossil fuels really cost us in a world at war

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Anne Jellema is Executive Director of 350.org.

The war on Iran and Lebanon is a deeply unjust and devastating conflict, killing civilians at home, destroying lives, and at the same time sending shockwaves through the global economy. We, at 350.org, have calculated, drawing on price forecasts from the International Monetary Fund (IMF) and Goldman Sachs, just how much that volatility is costing us. 

Even under the IMF’s baseline scenario – a de facto “best case” scenario with a near-term end to the war and related supply chain disruptions – oil and gas price spikes are projected to cost households and businesses globally more than $600 billion by the end of the year. Under the IMF’s “adverse scenario”, with prolonged conflict and sustained price pressures, we estimate those additional costs could exceed $1 trillion, even after accounting for reduced demand.

Which is why we urgently need a power shift. Governments are under growing pressure to respond to rising fuel and food costs and deepening energy poverty. And it’s becoming clearer to both voters and elected officials that fossil dependence is not only expensive and risky, but unnecessary. 

People who can are voting with their wallets: sales of solar panels and electric vehicles are increasing sharply in many countries. But the working people who have nothing to spare, ironically, are the ones stuck with using oil and gas that is either exorbitantly expensive or simply impossible to get.

Drain on households and economies

In India, street food vendors can’t get cooking gas and in the Philippines, fishermen can’t afford to take their boats to sea. A quarter of British people say that rising energy tariffs will leave them completely unable to pay their bills. This is the moment for a global push to bring abundant and affordable clean energy to all.

In April, we released Out of Pocket, our new research report on how fossil fuels are draining households and economies. We were surprised by the scale of what we found. For decades, governments have reassured people that energy price spikes are unfortunate but unavoidable – the result of distant conflicts, market forces or geopolitical shocks beyond anyone’s control. But the numbers tell a different story. 

    What we are living through today is not an energy crisis. It is a fossil fuel crisis. In just the first 50 days of the Middle East conflict, soaring oil and gas prices have siphoned an estimated $158 billion–$166 billion from households and businesses worldwide. That is money extracted directly from people’s pockets and transferred, almost instantly, into fossil fuel company balance sheets. And this figure only captures the immediate impact of price spikes, not the permanent economic drain of fossil dependence. Fossil fuels don’t just cost us once, they cost us over and over again.

    First, through our bills. Every time there is a war, an embargo or a supply disruption, fossil fuel prices surge. For ordinary people, this means higher costs for energy, transport and food. Many Global South countries have little or no fiscal space to buffer the shock; instead, workers and families pay the price.

    Second, through our taxes. Governments around the world continue to pour vast sums of public money into fossil fuel subsidies. These are often justified as a way to protect the most vulnerable at the petrol pump or in their homes. But in reality, the benefits are overwhelmingly captured by wealthier households and corporations. The poorest 20% receive just a fraction of this support, while public finances are drained.

    Third, through climate impacts. New research across more than 24,000 global locations gives a granular account of the true costs of extreme heat, sea level rise and falling agricultural yields. Using this data to update IMF modelling of the social cost of carbon, we found that fossil fuel impacts on health and livelihoods amount to over $9 trillion a year. This is the biggest subsidy of all, because these massive and mounting costs are not charged to Big Oil – they are paid for by governments and households, with the poorest shouldering the lion’s share. 

    Massive transfer of wealth to fossil fuel industry

    Adding up direct subsidies, tax breaks and the unpaid bill for climate damages, the total transfer of wealth from the public to the fossil fuel industry amounts to $12 trillion even in a “normal” year without a global oil shock. That’s more than 50% higher than the IMF has previously estimated, and equivalent to a staggering $23 million a minute.

    The fossil fuel industry has become extraordinarily adept at profiting from instability. When conflict drives up prices, companies do not lose, they gain. In the current crisis, oil producers and commodity traders are on track to secure tens of billions of dollars in additional windfall profits, even as households face rising bills and governments struggle to manage the fallout.

    Fossil fuel crisis offers chance to speed up energy transition, ministers say

    This growing disconnect is impossible to ignore. Investors are advised to buy into fossil fuel firms precisely because of their ability to generate profits in times of crisis. Meanwhile, ordinary people are told to tighten their belts.

    In 2026, unlike during the oil shocks of the 1970s, clean energy is no longer a distant alternative. Now, even more than when gas prices spiked due to Russia’s invasion of Ukraine in 2022, renewables are often the cheapest option available. Solar and wind can be deployed quickly, at scale, and without the volatility that defines fossil fuel markets.

    How to transition from dirty to clean energy

    The solutions are clear. Governments must implement permanent windfall taxes on fossil fuel companies to ensure that extraordinary profits generated during crises are redirected to support households. These revenues can be used to reduce energy bills, invest in public services, and accelerate the rollout of clean energy.

    Second, we must shift subsidies away from fossil fuels and towards renewable solutions, particularly those that can be deployed quickly and equitably, such as rooftop and community solar. This is not just about cutting emissions. It is about building a more stable, fair and resilient energy system.

    Finally, we need binding plans to phase out fossil fuels altogether, replacing them with homegrown renewable energy that can shield economies from future shocks. Because what the current crisis has made clear is this: as long as we remain dependent on fossil fuels, we remain vulnerable – to conflict, to price volatility and to the escalating impacts of climate change.

    The true price of fossil fuels is no longer hidden. It is visible in rising bills, strained public finances and communities pushed to the brink. And it is being paid, every day, by ordinary people around the world.

    It’s time for the great power shift

    Full details on the methodology used for this report are available here.

    The Great Power Shift is a new campaign by 350.org global campaign to pressure governments to bring down energy bills for good by ending fossil fuel dependence and investing in clean, affordable energy for all

    Logo of 350.org campaign on “The Great Power Shift”

    Logo of 350.org campaign on “The Great Power Shift”

    The post What fossil fuels really cost us in a world at war appeared first on Climate Home News.

    What fossil fuels really cost us in a world at war

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    Climate Change

    Traditional models still ‘outperform AI’ for extreme weather forecasts

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    Computer models that use artificial intelligence (AI) cannot forecast record-breaking weather as well as traditional climate models, according to a new study.

    It is well established that AI climate models have surpassed traditional, physics-based climate models for some aspects of weather forecasting.

    However, new research published in Science Advances finds that AI models still “underperform” in forecasting record-breaking extreme weather events.

    The authors tested how well both AI and traditional weather models could simulate thousands of record-breaking hot, cold and windy events that were recorded in 2018 and 2020.

    They find that AI models underestimate both the frequency and intensity of record-breaking events.

    A study author tells Carbon Brief that the analysis is a “warning shot” against replacing traditional models with AI models for weather forecasting “too quickly”.

    AI weather forecasts

    Extreme weather events, such as floods, heatwaves and storms, drive hundreds of billions of dollars in damages every year through the destruction of cropland, impacts on infrastructure and the loss of human life.

    Many governments have developed early warning systems to prepare the general public and mobilise disaster response teams for imminent extreme weather events. These systems have been shown to minimise damages and save lives.

    For decades, scientists have used numerical weather prediction models to simulate the weather days, or weeks, in advance.

    These models rely on a series of complex equations that reproduce processes in the atmosphere and ocean. The equations are rooted in fundamental laws of physics, based on decades of research by climate scientists. As a result, these models are referred to as “physics-based” models.

    However, AI-based climate models are gaining popularity as an alternative for weather forecasting.

    Instead of using physics, these models use a statistical approach. Scientists present AI models with a large batch of historical weather data, known as training data, which teaches the model to recognise patterns and make predictions.

    To produce a new forecast, the AI model draws on this bank of knowledge and follows the patterns that it knows.

    There are many advantages to AI weather forecasts. For example, they use less computing power than physics-based models, because they do not have to run thousands of mathematical equations.

    Furthermore, many AI models have been found to perform better than traditional physics-based models at weather forecasts.

    However, these models also have drawbacks.

    Study author Prof Sebastian Engelke, a professor at the research institute for statistics and information science at the University of Geneva, tells Carbon Brief that AI models “depend strongly on the training data” and are “relatively constrained to the range of this dataset”.

    In other words, AI models struggle to simulate brand new weather patterns, instead tending forecast events of a similar strength to those seen before. As a result, it is unclear whether AI models can simulate unprecedented, record-breaking extreme events that, by definition, have never been seen before.

    Record-breaking extremes

    Extreme weather events are becoming more intense and frequent as the climate warms. Record-shattering extremes – those that break existing records by large margins – are also becoming more regular.

    For example, during a 2021 heatwave in north-western US and Canada, local temperature records were broken by up to 5C. According to one study, the heatwave would have been “impossible” without human-caused climate change.

    The new study explores how accurately AI and physics-based models can forecast such record-breaking extremes.

    First, the authors identified every heat, cold and wind event in 2018 and 2020 that broke a record previously set between 1979 and 2017. (They chose these years due to data availability.) The authors use ERA5 reanalysis data to identify these records.

    This produced a large sample size of record-breaking events. For the year 2020, the authors identified around 160,000 heat, 33,000 cold and 53,000 wind records, spread across different seasons and world regions.

    For their traditional, physics-based model, the authors selected the High RESolution forecast model from the Integrated Forecasting System of the European Centre for Medium-­Range Weather Forecasts. This is “widely considered as the leading physics-­based numerical weather prediction model”, according to the paper.

    They also selected three “leading” AI weather models – the GraphCast model from Google Deepmind, Pangu-­Weather developed by Huawei Cloud and the Fuxi model, developed by a team from Shanghai.

    The authors then assessed how accurately each model could forecast the extremes observed in the year 2020.

    Dr Zhongwei Zhang is the lead author on the study and a researcher at Karlsruhe Institute of Technology. He tells Carbon Brief that many AI weather forecast models were built for “general weather conditions”, as they use all historical weather data to train the models. Meanwhile, forecasting extremes is considered a “secondary task” by the models.

    The authors explored a range of different “lead times” – in other words, how far into the future the model is forecasting. For example, a lead time of two days could mean the model uses the weather conditions at midnight on 1 January to simulate weather conditions at midnight on 3 January.

    The plot below shows how accurately the models forecasted all extreme events (left) and heat extremes (right) under different lead times. This is measured using “root mean square error” – a metric of how accurate a model is, where a lower value indicates lower error and higher accuracy.

    The chart on the left shows how two of the AI models (blue and green) performed better than the physics-based model (black) when forecasting all weather across the year 2020.

    However, the chart on the right illustrates how the physics-based model (black) performed better than all three AI models (blue, red and green) when it came to forecasting heat extremes.

    Accuracy of the AI models
    Accuracy of the AI models (blue, red and green) and the physics-based model (black) at forecasting all weather over 2020 (left) and heat extremes (right) over a range of lead times. This is measured using “root mean square error” (RMSE) – a metric of how accurate a model is, where a lower value indicates lower error and higher accuracy. Source: Zhang et al (2026).

    The authors note that the performance gap between AI and physics-based models is widest for lower lead times, indicating that AI models have greater difficulty making predictions in the near future.

    They find similar results for cold and wind records.

    In addition, the authors find that AI models generally “underpredict” temperature during heat records and “overpredict” during cold records.

    The study finds that the larger the margin that the record is broken by, the less well the AI model predicts the intensity of the event.

    ‘Warning shot’

    Study author Prof Erich Fischer is a climate scientist at ETH Zurich and a Carbon Brief contributing editor. He tells Carbon Brief that the result is “not unexpected”.

    He adds that the analysis is a “warning shot” against replacing traditional models with AI models for weather forecasting “too quickly”.

    The analysis, he continues, is a “warning shot” against replacing traditional models with AI models for weather forecasting “too quickly”.

    AI models are likely to continue to improve, but scientists should “not yet” fully replace traditional forecasting models with AI ones, according to Fischer.

    He explains that accurate forecasts are “most needed” in the runup to potential record-breaking extremes, because they are the trigger for early warning systems that help minimise damages caused by extreme weather.

    Leonardo Olivetti is a PhD student at Uppsala University, who has published work on AI weather forecasting and was not involved in the study.

    He tells Carbon Brief that “many other studies” have identified issues with using AI models for “extremes”, but this paper is novel for its specific focus on extremes.

    Olivetti notes that AI models are already used alongside physics-based models at “some of the major weather forecasting centres around the world”. However, the study results suggest “caution against relying too heavily on these [AI] models”, he says.

    Prof Martin Schultz, a professor in computational earth system science at the University of Cologne who was not involved in the study, tells Carbon Brief that the results of the analysis are “very interesting, but not too surprising”.

    He adds that the study “justifies the continued use of classical numerical weather models in operational forecasts, in spite of their tremendous computational costs”.

    Advances in forecasting

    The field of AI weather forecasting is evolving rapidly.

    Olivetti notes that the three AI models tested in the study are an “older generation” of AI models. In the last two years, newer “probabilistic” forecast models have emerged that “claim to better capture extremes”, he explains.

    The three AI models used in the analysis are “deterministic”, meaning that they only simulate one possible future outcome.

    In contrast, study author Engelke tells Carbon Brief that probabilistic models “create several possible future states of the weather” and are therefore more likely to capture record-breaking extremes.

    Engelke says it is “important” to evaluate the newer generation of models for their ability to forecast weather extremes.

    He adds that this paper has set out a “protocol” for testing the ability of AI models to predict unprecedented extreme events, which he hopes other researchers will go on to use.

    The study says that another “promising direction” for future research is to develop models that combine aspects of traditional, physics-based weather forecasts with AI models.

    Engelke says this approach would be “best of both worlds”, as it would combine the ability of physics-based models to simulate record-breaking weather with the computational efficiency of AI models.

    Dr Kyle Hilburn, a research scientist at Colorado State University, notes that the study does not address extreme rainfall, which he says “presents challenges for both modelling and observing”. This, he says, is an “important” area for future research.

    The post Traditional models still ‘outperform AI’ for extreme weather forecasts appeared first on Carbon Brief.

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