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Welcome to Carbon Brief’s China Briefing.

China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.

Key developments

China’s equipment ‘trade-in’ act could reduce emissions

EQUIPMENT UPGRADE: On 13 March, the State Council, China’s top administrative authority, released an action plan to “promote the large-scale renewal of equipment and the trading-in of consumer goods”, reported state news agency Xinhua. According to the official document, “the scale of equipment investment, in areas including industry, agriculture, construction, transportation, education, culture, tourism and medical care, is planned to increase by more than 25% by 2027 compared with last year”. The upgrade in “key industries” will also help “reduce emissions” and “increase efficiency”, the document said. Chinese financial outlet Yicai said that, under the plan, the government also aims to double the volume of scrapped cars being recycled and increase the recycling of household appliances by 30%. 

DOMESTIC DEMAND: Bloomberg said that the equipment upgrade action plan was a “pillar” of the government’s plan for economic expansion: “The programme will get support from the central government budget alongside tax breaks and targeted lending from banks…The statements didn’t specify the amount of government funding for the programme, which was first mentioned by President Xi Jinping in February as a way of boosting demand for goods.” The outlet quoted one economist saying the plan would add 0.7 percentage points to GDP growth each year until 2027, with most of the boost coming from support for car purchases. It reported an economist that advises the Chinese government saying that “China needs to boost domestic demand and adjust its industrial policy to counter rising criticism from the US and Europe”.

New rules to boost renewables

GUARANTEED PURCHASE: China’s top economic planner the National Development and Reform Commission (NDRC) released measures to provide “fully-guaranteed purchase of renewable energy electricity” from 1 April, industry news outlet BJX News reported. The rules update an existing policy from 2007, according to an analysis published by Jiemian, to clarify the scope of the “fully guaranteed purchase” programme. The report added that the  purchase mechanism was designed to allocate “purchase responsibilities” based on “market behaviour (need)”. An analysis republished on WeChat by BJX News said that the rules also clarify there might be legal “consequences” for both the renewable energy producer and grids that purchase the power, if they failed to meet their targets of production and purchase. For power purchasers, it is their “responsibility” to purchase a certain amount of renewable power under the purchase mechanism, added the outlet.

CURTAILMENT TOLERATED: Elsewhere, local media in China suggested that the country may soon “end its policy of limiting [renewable power] installations when power curtailments rise above 5% of installed capacity for a given source”, Bloomberg reported, adding that “solar manufacturers have seen their shares rebound in recent days as speculation mounts”. It noted that the local outlets did not provide a source for this information. However, Yu Qing, chief executive of an electricity company in Hangzhou, wrote in an analysis on social media platform WeChat that he was sceptical about the benefit for solar. He said that while easing curtailment rules would allow some previously restricted projects to connect to the grid, it was only a “planning method” and that market signals and other constraints would still cause problems for solar developers. 

Carbon market expands to aluminium industry

NEW JOINER: China’s national emissions trading scheme (ETS) is about to expand beyond the power sector to cover aluminium production, Chinese economic media outlet Caixin reported, but the details have not yet been finalised. Electrolytic aluminium production emits “the most carbon in the non-ferrous metals sector in China” and was responsible for 4.5% of the national total carbon emissions in 2020, added Caixin. (For more, see Carbon Brief’s Q&A on the ETS, China country profile and China Briefing of 8 February.)

WHAT TO EXPECT: Yan Qin, lead analyst at London Stock Exchange Group, told Carbon Brief that the consultation draft of the official document hinted the ETS will cover “indirect emissions from aluminium production”, related to the electricity used in the process. She added that, “as previously announced, industry sectors will only conduct ‘simulation trading’ at the beginning” of their entry into the ETS. The recently closed “two sessions” political gathering (see below) sent a signal that the ETS will involve more industries in the future, said an analysis published by the Chinese government-backed China clean development mechanism fund. Chinese media outlet Lintan-energy posted on its WeChat account that the cement industry is likely to be the third sector to join the ETS, after power and aluminium, and could enter the market by the end of this year.

Booming EV industry faces export difficulties 

‘INTENSIFYING’ MARKET: The number of newly registered companies selling electric vehicles (EVs) in 2023 was six times higher than in 2019, said Chinese outlet Science and Technology Daily, citing a report on trends in the country’s manufacturing industry. China’s technology giant Xiaomi will start EV sales this month, according to BBC News, which said the move “comes as a price war in China’s EV market has been intensifying”. Meanwhile, the Financial Times reported on a “zombie” combustion-engine car factory in China – referring to unused production lines due to lack of demand – and said analysts were predicting hundreds more over the next decade “as buyers opt for EVs”. The head of Chinese EV giant BYD said “new energy vehicles” – including EVs and plug-in hybrids – made up 48% of new cars sales in China last week, Australian outlet the Driven reported, which quoted him saying that, “if it continues at this rate, I estimate that the penetration could cross 50% in the next three months”. 

ROAD BUMPS: Despite the phenomenon of combustion car “zombie” factories, Volkswagen said it still believed the market for petrol-powered cars remains “lucrative” in smaller Chinese cities, said the Financial Times. The report added that poorer cities’ “lack of charging infrastructure” has frustrated EV industry growth. In related news Caixin, citing data from consultancy firm McKinsey China, reported that there was significant “disillusionment” among Chinese EV owners in 2023, with 22% stating they would not consider an EV for their next car, a sharp rise from 3% in 2022. It said the number of EV owners in small cities and rural areas regretting their purchase was at a “striking” 54%, due to inconvenient charging infrastructure. 

EXPORT CONUNDRUM: Following investigations in the EU and US over the growth of Chinese EV exports, the UK is expected to launch its own probe, reported the Daily Telegraph, adding that transport secretary Mark Harper warned of “robust” trade sanctions to prevent what the newspaper called a “flood” of cheap Chinese EVs. Responding to the moves, He Yadong, spokesperson of China’s Ministry of Commerce, expressed “concerns” and added that China’s exports will not “damage” the EU market, reported BJX. Italy has already approached Chinese EV firms and setting up manufacturing in Italy would be “a big win for China’s auto industry”, which sees Italy as a “strategically positioned bridgehead” to get into European, African and Middle Eastern markets, reported Quartz

Spotlight 

What does the economic signal from China’s ‘two sessions’ mean for global emissions, geopolitics and trade?

Every spring, China’s top leaders use the annual political event lianghui (两会), which is also known as “two sessions”, to send signals to the world about how they would like to lead the country in the coming year.

As the “two sessions” drew to a close, experts, academics and foreign investors moved on to interpreting those signals and drafting strategies in response to them. In the previous issue of China Briefing, Carbon Brief analysed the “two sessions” domestic impact.

But, as the world’s second-largest economy and largest emitter, China’s influence does not stop there. This week, Carbon Brief looks into the bigger picture and asks leading experts to interpret how geopolitics, international trade and global emissions could be impacted. Their responses have been edited for clarity and length.

Dr Li Fang, China country director at World Resources Institute:

The most impressive takeaways from this year’s “two sessions”, for me, are the emphasis on how to vitalise development through internal-driven forces, how to improve its market allocation, and how to establish a more low-carbon, ecological and equitable business environment.

The discussion surrounding high-standard international economic and trade rules integrating considerations for climate, ecology and human welfare signals that China is exploring how to achieve a better combination of “effective government” and “efficient market”. 

It is speeding up efforts to incorporate new production elements like carbon into its considerations. I believe there’s a growing inclination among China’s decision-makers to propose proactive strategies aligning economic development with addressing sustainability challenges like climate change and biodiversity loss. I believe there are emerging opportunities for markets and businesses to play more significant roles in China’s future transition.

Nis Grünberg, lead analyst at MERICS:

The “two sessions” did not offer anything surprising or substantively new, but confirmed the approach of the past months, prioritising energy security and economic stability before an accelerated, potentially disruptive, exit of fossil fuel. No new ambitions on emission cuts or coal consumption were announced.

On the positive side, officials plan to continue the massive buildup of renewable energy capacity and systematic support of clean-tech industries. In the short run, this means no quick departure from fossil fuel and large emissions, but, in the long run, the added renewables and China’s rapidly growing clean-tech sector will displace fossil fuel and bring down emissions.

The strong focus on technology apparent throughout the government work report means continuing the substantial political and economic investment in clean tech, which has become a key sector for growth. This also means there is no end in sight to trade conflicts over Chinese exports of electric vehicles (EVs), solar and batteries, which were singled out as success stories. China is signalling that it is not building its clean-tech industry for domestic consumption only, but seeks to double down and expand its export capacities.

Yao Zhe, policy analyst at Greenpeace East Asia

At a time when China’s economy is in dire need of confidence, clean-energy industries offered a rare success story. At this year’s “two sessions”, renewable energy and EVs received the highest recognition for their contributions to economic growth and industrial upgrading. Where the low-carbon economy was once a catchy concept seeking political buy-in, it has now established itself. That signal is clear: China will not waste this potential. The global race for net-zero economies will only accelerate.

But while Chinese policymakers are eager to embrace the future, the past has proven tricky to discard. Coal power continues to receive special treatment, slotted as a safety net for China’s energy consumption, fueling concerns that China will miss its key 2025 climate targets. China’s carbon emissions may soon reach a tipping point. But this year’s “two sessions” did not reveal how or on what near-term timetable policymakers will navigate this historic change.

Ali Wyne, senior research and advocacy advisor on US-China relationship, International Crisis Group

Chinese leaders emphasised cultivating “new productive forces“. [“Productive forces” is a central idea in Marxist theory referring to the combination of human labour with technology and infrastructure, explained a recent article in the Hong Kong-based South China Morning Post. It added that Chinese president Xi Jinping coined the phrase “new productive forces” last year and quoted him saying it means “advanced productivity freed from traditional economic growth models’, feature “high technology, high efficiency and high quality” and “align with the country’s new development philosophy”.] 

With [leaders] emphasising the concept, the “two sessions” underscored China’s hope that investing in leading-edge industries including advanced manufacturing, artificial intelligence and renewable energy will sustain its growth more reliably than investing in traditional drivers, such as real estate.

Domestic demand is unlikely to keep pace with the new capacity that this push generates, however, so economic frictions between China and advanced industrial democracies, especially in the West, are poised to intensify further.

Watch, read, listen

WOMEN AND CLIMATE CHANGE: Chinese climate and investment consultancy firm 2060 Advisory produced a podcast on International Women’s Day about female entrepreneurship in the climate industry.

CLIMATE COOPERATION: The Legal Planet, a climate policy and environmental law blog, released a video recording of Joanna Lewis, writer of the book “Cooperating for the Climate, giving a lecture on how to cooperate with China at UCLA’s Emmett Institute

‘TWO SESSIONS’ AND JAPAN: UK thinkthank Chatham House recorded a podcast discussing China’s National People’s Congress – the legislative body that hosted the recent “two sessions” – and China’s relationship with its close neighbour Japan.

STEEL EMISSIONS: Hong Kong-based South China Morning Post published an article based on data from US thinktank Global Energy Monitor (GEM), which found China’s steel sector could cut carbon emissions by more than 10% in 2025 with a “faster shift to clean production”. 

New science 

Health cost impacts of extreme temperature on older adults based on city-level data from 28 provinces in China
Environmental Research Letters 

New research into the impact of extreme temperatures on medical costs for “older adults” found that in western Chinese provinces, costs will more than triple by 2030, compared to a 2016-20 baseline. The authors found that under the very high emissions RCP8.5 scenario, older adults could cost 2.7tn Chinese yuan by 2050. However, costs can be reduced by 4.6% and 7.4% by limiting emissions in line with the medium-emissions RCP4.5 and low-emissions RCP2.6 scenarios, respectively.

Assessing the supply risks of critical metals in China’s low-carbon energy transition
Global Environmental Change

China has “grown increasingly susceptible to disruptions” in critical metal supplies as it transitions to low-carbon technologies, according to a new study. The nation is the largest consumer and importer of these metals, leaving it vulnerable to geopolitical shifts and volatile prices, the researchers say. They model supply risks for 30 metals and conclude that the risk facing China for nine metals – including copper and chromium – “exceeds that of other countries that consume large amounts of critical metals”.

China Briefing is researched and written by Wanyuan Song, Anika Patel and other contributors. Please send tips and feedback to china@carbonbrief.org

The post China Briefing 21 March: New ‘trade-in’ policy; China ETS expands; ‘Two sessions’ geopolitical impact appeared first on Carbon Brief.

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Climate Change

Palestine: Israel’s bombing has left Gaza vulnerable to climate change

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Israel’s bombardment of Gaza during the conflict that broke out in October 2023 has wrecked progress towards adapting the enclave to climate change and left two million Gazans vulnerable to heatwaves, drought and disease, the Palestinian Authority (PA) said in a new climate plan submitted to the United Nations.

Palestine’s third nationally determined contribution (NDC), uploaded to the UN climate body’s website this week, says that while “the aggression on the Gaza Strip did not make the climate worse”, “it removed the housing, water and sanitation systems, health facilities, energy networks, roads and livelihoods through which people absorb a climate they were already struggling with.”

The 91-page document lists the types of infrastructure it says Israel has destroyed and notes how the destruction will worsen the impacts of climate change. It says the bombing of hospitals and rising hunger have make it harder for Gazans to cope with the health impacts of climate-driven heatwaves and waterborne diseases.

On beaches of Gaza and Tel Aviv, two tales of one heatwave

The destruction of water tanks, boreholes and desalination plants, meanwhile, have left Gazans struggling with the effects of water shortages and drought, while mass unemployment reduces people’s ability to afford climate-driven price rises. The erasure of most of the Strip’s homes makes it more difficult for people to avoid the sun’s increasing heat, the NDC said.

Many Gazans are now living in the ruins of collapsed buildings or in makeshift shelters and tents that offer little or no protection from high temperatures.

A displaced Palestinian child fills water containers on July 2, 2026 in Gaza City, Gaza. (Photo by Ahmad Hasaballah/Getty Images)

Palestine’s previous goals to cut emissions and adapt to climate change in Gaza, expressed in its last NDC five years ago, were based on a pre-war baseline that “no longer describes anything that exists”, the NDC says. Progress made since 2021 has now been destroyed, it adds.

Green reconstruction of Gaza

Instead of continuing to aim for these adaptation and emissions-reduction goals, the PA is now calling for the green reconstruction of Gaza. It says buildings should be constructed again in an energy-efficient manner with solar panels and served with modern water, waste and transport systems.

While the PA, controlled by the Fatah political party, continues to claim legitimate control of Gaza, the strip was effectively governed by Fatah’s rival Hamas between 2007 and the recent war. Control is now split between Israel and the political wing of Islamist militant group Hamas, after a US-backed ceasefire took effect in October 2025, although a UN-backed committee plans to take over.

    The United Nations, European Union and World Bank have jointly estimated that Gaza needs $71.4 billion of investment in the next two years to recover and build back. This process should be Palestinian-led, they said in April.

    But US President Donald Trump has said the US should “take over” and “own” Gaza and redevelop it as the “Riviera of the Middle East”. Israel’s right-wing prime minister Benjamin Netanyahu has said that Israel should control the territory with civil administration managed by Palestinians favourable to Israel.

    With occupation, targets conditional

    In the other part of Palestine, the West Bank, the Palestinian Authority carries out some government functions, but ultimate control rests with Israel, which has occupied the West Bank since 1967.

    Because Israel controls planning in most of the West Bank, the NDC argues that the PA cannot pursue all the climate projects it wants. In addition, Israel restricts the movement of PA officials, making data collection difficult, and controls the West Bank’s electricity supply meaning that the PA cannot control whether it comes from dirty or clean sources of energy.

    Given this situation, the NDC says that all of Palestine’s new climate targets are conditional but it will aim to reduce emissions 12.8% below a business-as-usual baseline by 2035 and 17.1% by 2040. If the Israeli occupation ends and Palestine regains full sovereignty over its land and resources, it will aim for reductions of 15.1% and 19.1% by 2035 and 2040 respectively under an “independence pathway”.

    That could allow, for example, for greater electrification and reducing emissions per unit of growth, the document said.

    To achieve the 2035 emissions-reduction target and adapt to the impacts of climate change, the PA says it needs $8.6 billion in total. This funding would be spent on measures like encouraging solar farms and rooftop solar and scaling up solar water heating to cover four-fifths of households. To complement the planned increase in solar power, the authority wants to modernise the electricity grid and install battery storage.

    In the transport sector, it aims to promote the uptake of electric vehicles, develop bus rapid transit corridors and scrap old polluting trucks and buses. In Gaza in particular, it wants to deploy 66 electric buses when the conflict ends.

    A bus rapid transit system in Sao Paulo (Flickr/EMBARQ BRASIL)

    To adapt to climate-driven drought, the NDC includes initiatives to reuse wastewater through treatment plants, build desalination plants in Gaza to remove salt from seawater, and promote irrigation for farmers.

    The new climate plan was prepared by Palestine’s Environment Quality Authority, with support from the United Nations Development Programme and the governments of Britain and Spain.

    The United Nations recognised Palestine’s statehood in 2012 and it joined the UN’s climate convention and signed the Paris climate agreement – which requires countries to submit more ambitious NDCs every five years – in 2016.

    The Israeli foreign ministry did not respond to a request for comment. But in late 2024, then Israeli climate envoy Gideon Behar told Climate Home News that the war and the resulting environmental destruction in Gaza was the fault of Hamas.

    The post Palestine: Israel’s bombing has left Gaza vulnerable to climate change appeared first on Climate Home News.

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    Climate Change

    Analysis: UK solar power hits record high over summer 2026

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    Solar power generation in the UK reached a new record over the summer of 2026, as temperatures across the nation soared, according to new analysis by Carbon Brief.

    Collectively over June, July and August, solar farms and rooftops generated 8.8 terawatt-hours (TWh) of electricity in the UK*, as shown in the chart below.

    Line chart showing that UK solar generation reached an all-time high during record-hot summer 2026

    Speaking to Carbon Brief, Chris Hewett, chief executive of trade association Solar Energy UK welcomed the new record, adding that it was driven by “clear skies and continued growth in deployment”.

    This surge in generation took place amid the hottest summer on record in the UK, with five heatwaves between May and August.

    Summer 2026 was the sixth sunniest on record, with more than 620 hours of sunshine, according to the Met Office. England and Wales – which experienced the most extreme heat – saw their second-sunniest summers on record.

    June 2026 was the hottest June in England since records began in 1884, according to Met Office data, while Wales and the UK as a whole experienced their second-warmest June.

    It was the driest July for England and Wales since records began in 1836, with some parts of London seeing no rain at all in the month, while Wisley in Surrey had no rain for 62 days.

    In England, temperatures peaked at 38.1C at Kew Gardens in London on 13 August.

    According to the Met Office, this summer’s record mean temperature was made 130 times more likely by climate change.

    Amid these hot and sunny months, solar power generation increased 23% from the same period in 2025. This is double the level of solar generation over the summer of 2021, according to Carbon Brief analysis.

    While solar panels can be affected by periods of extreme heat, the longer hours of daylight and higher levels of irradiation over the summer more than offset any efficiency losses.

    June, July and August all saw solar set new monthly records for solar generation – July saw the highest solar generation in a calendar month ever, with 3.3TWh meeting 15% of overall electricity demand for the month.

    As of the end of August, the total UK solar generation in 2026 stood at 17TWh – 13% higher than the same point in 2025.

    The number of solar farms and rooftop installations has grown substantially in recent years, helping to boost generation. Domestic rooftop solar accounts for around 29% of total capacity.

    In 2025, the UK’s solar capacity reached 21 gigawatts (GW) by the third quarter of the year, according to UK government figures. This is a jump of 3GW, or 18%, year-on-year, as Carbon Brief reported in January.

    (Capacity is the maximum output possible from an electricity generation, whereas generation is what was produced over a certain time period, such as a day, month or year.)

    According to the University of Sheffield, the installed solar capacity is now nearly 24GW.

    This includes nearly 172,000 solar installations that have been fitted across the UK since the start of 2026, according to recent government figures. In July alone, more than 19,800 rooftop solar panels were installed – the equivalent of one installation every two minutes.

    In total, nearly 1.7m households in the UK now have solar panels installed.

    Over 26 heatwave days this summer – periods of at least three days when temperatures exceed the Met Office’s county-level heatwave temperature threshold – UK households with rooftop solar panels avoided an estimated £86.7m in electricity costs, according to analysis by Utility Bidder.

    Talking about the surge in solar generation this summer, Hewett says:

    “[It] not only kept bills down for people with solar and batteries in their homes, but helped keep overall power prices much lower than they would have been if Britain had been relying on more gas generation during the day”.

    Despite the record generation, no new half-hourly solar power output record was set in the summer of 2026. This still stands at 15.2 megawatts (MW) on 23 April 2026.

    * This article refers to the UK throughout, but strictly relates to the island of Great Britain, made up of England, Scotland and Wales. Northern Ireland is part of the separate, all-Ireland electricity system.

    The post Analysis: UK solar power hits record high over summer 2026 appeared first on Carbon Brief.

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    Climate Change

    How this summer’s heat and drought impacted crops in Europe – in six charts

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    Farmers around Europe are dealing with the aftermath of a summer of extreme heat, drought and wildfires that were exacerbated by climate change.

    Human-caused climate change is increasing the severity and likelihood of many extreme weather events around the world, which is increasing volatility for food producers.

    This summer resulted in, for example, shrunken potatoes in the Netherlands, reduced carrot harvests in France, dried-up rice fields in Italy and scorched olive groves in parts of the Mediterranean region.

    Global food prices are currently at their highest level since early 2023 due to “heatwaves and energy price dynamics”, according to the UN Food and Agriculture Organization.

    Other factors such as blocked fertiliser supplies in the Strait of Hormuz and high fuel costs have also played a role in this year’s agricultural outputs.

    In the six charts below, Carbon Brief provides a snapshot of the impact this summer’s extremes are considered to have had on crop production and yields across Europe.

    1. Most EU countries expect to see declines in cereal production this year

    2. Most countries are recording reduced crop yields

    3. Around €2bn worth of cereal losses after June heatwave

    4. UK yields of wheat, barley and oats are all due to drop in 2026

    5. Maize production in France is due to hit a four-decade low

    6. Declines in EU grains since 2025

    Article Contents

    1. Most EU countries expect to see declines in cereal production this year

    Bar chart showing that France is due to see the largest drops in cereal production in the EU in 2026. The bar chart shows that France's cereal production in 2026 has dropped -7.7 Mt of followed by Germany (-3.5 Mt), Poland (-3.2 Mt), Spain (-2.9 Mt), and Hungary (-2.6)
    Changes in cereal production in 26 EU countries between 2025 and 2026. Malta is excluded due to a lack of available data. Source: European Commission.

    France, in particular, will see heavy losses in the amount of cereals – such as wheat, barley and oats – it produces this year, according to European Commission data.

    French cereal production is expected to drop by almost 8 megatonnes (Mt) in 2026, compared to 2025.

    The chart above shows that most European countries, aside from Bulgaria, will also see production losses this year.

    Germany is due to see the second-largest losses in production, dropping by almost 4Mt compared to 2025.

    Prof Til Feike, a cropping systems expert at the Julius Kühn-Institut, says many areas in Germany and Austria, as with other parts of Europe, have been “hit hard by a long-lasting dry period in combination with record-high heatwaves”.

    This has resulted in dry grassland for animals and lower yields of maize, which is a “key fodder crop” for livestock. He tells Carbon Brief:

    “In the long run, farming must adapt better to more extreme weather conditions, not only heat and drought, but also prolonged wet periods. So, there is no one-fits-all solution for climate change adaptation.”

    2. Most countries are recording reduced crop yields

    Heat and a lack of water have “substantially worsened” crop expectations this summer in western and most of central Europe, according to a recent bulletin from the EU Joint Research Centre.

    Yields are expected to be “significantly reduced”, with local crop failures “likely” in areas such as France, southern Germany, northern and central Italy, and Hungary, it added.

    The chart below shows that yields of cereal grains – which, here, refers to the tonnes of a grain grown per hectare of land – are expected to fall in most EU countries in 2026.

    Bar chart showing that Slovakia and Austria are due to see the largest cereal yield declines in 2026. The bar chart shows that both Slovakia and Austria have seen their cereal yields drop -1.3 tonnes per hectare over 2025-26.
    Changes in cereal yields in 26 EU countries between 2025 and 2026. Malta is excluded due to a lack of available data. Source: European Commission.

    Slovakia, Austria and Hungary are expected to see the largest declines in cereal yields, reducing by more than one tonne per hectare in 2026 compared to 2025.

    The recent EU bulletin noted that irrigated crops performed well in Portugal this summer – the country with the largest yield increases. Other crops relying on rainfall showed growing signs of heat stress, it added.

    3. Around €2bn worth of cereal losses after June heatwave

    The record heatwave that hit many parts of Europe in June contributed to an estimated €2-2.3bn in cumulative grain production losses, as shown in the chart below.

    Bar chart showing that the June heatwave in 2026 led to around €2bn in cereal production losses in Europe. The bar chart shows that France is the EU country that lost the most revenue, with an estimated loss of €891 million, followed by Hungary (with an estimated loss of €444 million) and Spain (with an estimated loss of €276)
    Estimates of revenue lost due to changes in production forecasts between June and July 2026. Source: ECIU.

    The intense June heat in western Europe would have been “virtually impossible” just 50 years ago, according to a rapid climate attribution study. It was the region’s hottest June on record.

    The Energy & Climate Intelligence Unit (ECIU) thinktank analysed June and July 2026 grain forecasts from Coceral, a European grain traders association.

    ECIU estimated lost supply by multiplying the change in tonnes of grains between these two months by prices for harvest delivery in 28 European countries.

    Major grain producers France, Germany, Hungary and Spain accounted for 86% of the lost revenue, according to the ECIU.

    Extreme heat is also expected to have a wider economic impact across the continent. Analysis from Triodos Bank found that this summer’s extreme weather could reduce the EU’s gross domestic product (GDP) by around 1% this year, or around €180bn.

    4. UK yields of wheat, barley and oats are all due to drop in 2026

    If current trends continue, the average yields for cereals and oilseeds will result in the UK’s worst harvest since detailed records began in 1984, according to ECIU.

    Line chart showing that UK cereal yields could hit lowest levels since at least 1990 this year.
    Yields of cereals and oilseed rape in the UK over 1990-2026. Source: Department for Environment, Food & Rural Affairs and Agriculture and Horticulture Development Board.

    Barley yields could fall by 15%, oats by 14% and wheat yields by 6% year-on-year, according to 2026 harvest surveys from the Agriculture and Horticulture Development Board, a non-departmental public body that provides agricultural data to the UK government.

    ECIU said that, even if the situation improves, this year is still expected to be one of the five worst harvests on record. This means that four of the five worst harvests in the UK have occurred in the past decade.

    Consumers will likely see higher prices and/or smaller vegetables in supermarkets as a result, Tim O’Malley, chairman of UK company Nationwide Produce, told BBC News in August.

    Other crops, such as berries, have grown successfully in the extreme heat. But the Guardian noted fears this could dip later this year “as plants become exhausted from heavy cropping during the heatwave”.

    5. Maize production in France is due to hit a four-decade low

    France has been acutely affected by this summer’s extreme weather, with more than 7,300 excess deaths during heatwaves and a record number of weather stations recording temperatures of above 40C.

    The country is the EU’s largest agricultural producer, but heat, drought and wildfires have affected many crops.

    The chart below shows that maize production is set to drop by more than one-third (35%) year-on-year.

    Line chart showing that maize production in France is due to reach lowest levels since 1980
    Maize production in France over 1980-2026. Source: Agreste.

    This could result in France’s lowest maize production since 1980, according to data from Agreste, the country’s agriculture ministry’s statistics service.

    Due to the heat, “record-early” grape harvests have also been recorded in various parts of the nation since mid-July, reported Le Monde. In some cases, this means “smaller, less juicy grapes, which will yield less wine”, explained the newspaper.

    6. Declines in EU grains since 2025

    Chart showing that EU cereal production is set to reduce by 9% in 2026.
    Production of cereal crops in Europe over 1993-2026. The “other” category includes oats, rye, sorghum, millet and buckwheat. Source: European Commission.

    Overall in the EU, data and projections indicate declines in the output of cereal grains this year.

    Cereal production is set to fall by 9% compared to 2025, according to the European Commission.

    Just one year in the past decade – 2024 – recorded lower production levels.

    Maize production is set to be particularly affected, with projections indicating a 13% drop, to 52Mt – the lowest level in the EU since 2007.

    The post How this summer’s heat and drought impacted crops in Europe – in six charts appeared first on Carbon Brief.

    How this summer’s heat and drought impacted crops in Europe – in six charts
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