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Wasted food – if it were a country – would be the third largest source of greenhouse gas emissions in the world, according to the UN’s Food and Agriculture Organization.

Reducing food waste can help to cut down on these emissions, feed those who are hungry and improve food security.

Food waste experts tell Carbon Brief that “food loss and waste” remains a “major issue”. 

There are a range of solutions to tackle the problem, they say, but more action is needed to put such actions in place.

This in-depth Q&A outlines why wasted food causes emissions, why it has become such a big issue and how countries and companies plan to slash waste in the years ahead.

What is food loss and waste?

Around one-third of all food goes to waste during different steps of the production process – from farm, to truck, to fridge.

Food “loss”, according to the UN Environment Programme’s (UNEP) 2021 food waste index report, is defined as all of the edible parts of food that end up discarded in early parts of the supply chain – for example, vegetables that rot in fields before being picked, crops hit by disease and meat that spoils due to lack of transport refrigeration.

These losses occur before the food reaches supermarkets. Around 15% of food produced globally is lost during harvest or slaughter, a 2021 WWF-UK report found.

Food “waste” refers to the discarding of food and the inedible parts of food that are not consumed by people at a retail, food service or household level. This waste can end up in landfill, compost or animal feed.

The vast majority of food waste goes to landfill. As this food breaks down over time, it generates greenhouse gases, primarily methane. (See: Why is food waste a climate issue?)

The chart below shows that the majority of supply chain and household food loss and waste is considered sufficiently edible.

Estimates of food loss and waste data show that, by weight, approximately 90% of food loss and waste in the supply chain (left) is edible (green) and 10% is inedible (brown). Approximately 70% of household (right) wasted food is edible and 30% is inedible. Source: US Environmental Protection Agency (2021).

A 2020 World Bank report said that reducing food loss and waste can “make a profound difference” for multiple challenges – reducing hunger, strengthening economies and protecting the environment.

In addition to avoiding greenhouse gas emissions, shifts and reductions in food loss and waste can “promote environmental co-benefits” for biodiversity along with soil and water health, a recent study noted.

Dr Christian Reynolds, a food loss and waste expert and a reader in food policy at the Centre for Food Policy in City, University of London, says waste is a constant struggle because “everybody’s got to eat and food degrades”. He tells Carbon Brief: 

“Food loss and waste is a major issue for us as a civilisation to tackle. But it’s something that we’ve been trying to tackle for a long time.”

The UNEP report estimates that food waste from households, retail and the food service industry amounts to 931m tonnes every year. Of this, 61% comes from households, 26% from food service and 13% from retail.

Where does food go after it is wasted?

The majority of food loss and waste ends up in landfills, where it produces methane. Food is the most common material put into landfill and incineration in the US, according to the US Environmental Protection Agency (EPA).

Incinerating waste results in a lower greenhouse gas impact than allowing it to decompose in a landfill.

Composting food waste also has a smaller environmental impact, resulting in 38-84% fewer emissions compared to landfill, a 2023 Nature study found.

The image below shows the EPA’s “food recovery hierarchy”, an inverted pyramid highlighting the most to least preferred options when dealing with excess food.

The most favourable option is to reduce the amount of extra food produced in the first place. The “last resort” choice is to dispose through landfill or incineration. Composting is the second “least preferred” option.

“Food recovery hierarchy” showing the most preferred (purple) to least preferred (grey) options to prevent and divert wasted food. Source: EPA (2023).
“Food recovery hierarchy” showing the most preferred (purple) to least preferred (grey) options to prevent and divert wasted food. Source: EPA (2023).

Dr Dawn King, a senior lecturer in environment and society at Brown University in Rhode Island, says that the main priority for food waste should be, as outlined by the EPA, to “get food to people who are hungry”.

Composting often requires either an organised pickup or a garden to compost at home, she tells Carbon Brief, so it is not always an available option for households.

Individuals can take action on food waste in other ways, but options can be limited, Reynolds says. He tells Carbon Brief:

“For both dietary change and for food loss and waste, there is an individualisation of responsibility to some degree. But, also at the same point, there are some system drivers for this.

“An individual can decide what portion and pack size of something they purchase. However, they can’t decide what portion and pack sizes are on display in the supermarket.”

Why is food waste a climate issue?

Producing food in general – particularly meat and dairy – requires a significant amount of land, water and other resources. It is also often costly to produce.

The global food system from production through to consumption is responsible for around one-third of the world’s annual human-caused emissions.

Greenhouse gases from wasted food account for around half of these emissions, a 2023 study found.

The study said that, in 2017, global food waste resulted in 9.3bn tonnes of CO2-equivalent (GtCO2e) emissions – roughly the same as the total combined emissions of the US and the EU that same year.

As food breaks down in landfill, it generates methane – a potent greenhouse gas. Per unit of mass, methane is 84-86 times stronger than CO2 over 20 years and 28-34 times as powerful over 100 years.

The table below shows a WWF-UK analysis of how different commodities, such as fruit, vegetables and meat, contribute to the global level of food waste.

Commodity Volume of waste
(million tonnes)³
% of total production Value of waste
($million)⁴
Fruit & vegetables 449 26% 160,157
Roots, tubers & oil crops 261 15% 44,095
Meat & animal products 153 12% 99,738
Cereals & pulses 196 14% 56,199
Fish & Seafood 25 44%
Other 90 6% 8,930

The contribution of different food commodity types to the global volume of food waste (in millions of tonnes), the percentage of total production that goes to waste and the value of this waste (in millions of USD). Source: WWF-UK (2021)

It is not only the methane emissions from rotted food that cause an environmental issue. All of the emissions associated with the production of a piece of food that is wasted – from the land used to grow it to the plastic used to package it – could have been avoided if the food was not produced and left to waste.

Food wasted in later stages of the supply chain – such as after it reaches a supermarket shelf or a consumer’s fridge – leads to even more waste due to the extra resources needed for packaging and transportation. (Food transport is not widely considered to majorly contribute to total food emissions, but some research challenges this assumption.)

The EPA says that 560,000 square kilometres of agricultural land is used to produce US food that is lost or wasted each year – an area the size of California and New York combined. This food would provide enough calories to feed more than 150 million people each year, the EPA adds.

Discarded white and red onions left to rot on a farm field in the Region of Lambton Shores, Southwest Ontario, Canada in 2017. Image ID: HHB4KC
Discarded white and red onions left to rot on a farm field in the Region of Lambton Shores, Southwest Ontario, Canada in 2017. Credit: Rubens Alarcon / Alamy Stock Photo.

Another issue to consider is the “carbon opportunity cost” of the land used to grow food, especially high-emitting options, such as meat and dairy. 

In short, if agricultural land used to grow wasted food was instead restored to forest or wild grasslands, the land would be able to store more carbon, with additional benefits for biodiversity.

So tackling and reducing food loss and waste would reduce emissions from across the supply chain and prevent needless resources being used to produce food that does not end up being eaten.

According to the UN, food loss and waste generates around 8% of all human-caused greenhouse gas emissions each year – around the same as the global tourism industry. This also comes at a time when as many as 783 million people were impacted by hunger in 2022, according to the FAO.

From a climate perspective, the right solutions to waste can help “unlock a fairer, [more] equitable and resilient food system”, says Reynolds.

Reynolds says food waste should be a bigger focus point for governments in their efforts to reduce emissions. He tells Carbon Brief:

“That’s an obvious thing that we could be putting within the NDCs [Nationally Determined Contributions, pledges made by each country under the Paris Agreement] as a piece of policy work to actually highlight food loss and waste reduction as part of the NDCs, and then that would cascade downward.

“There has been some discussion of food loss and waste within the wider climate, but it seems a very obvious pathway that we are not using to our fullest extent.”

What are countries doing to reduce food waste?

Food waste is targeted in a number of different ways through policy, campaigns and individual action.

A global goal to reduce waste forms a key part of the UN’s 12th Sustainable Development Goal (SDG) – a set of targets for countries to help tackle climate change, end poverty, improve health and boost economic growth.

One section of SDG 12 aims to halve per-capita global food waste at the retail and consumer levels, and also reduce food losses in production and supply chains by 2030.

But many countries have yet to tackle the issue head on in their policy plans relating to climate.

According to a report by the climate-action non-governmental organisation WRAP, 21 countries committed to reducing food loss and/or food waste in their NDCs submitted before the COP27 climate summit last year.

Of the 193 countries that submitted NDCs, nine countries specifically committed to reducing food waste and 14 committed to reducing food losses, the report found.

Several other countries including the UK, South Africa and parts of the EU refer to other policy documents that mention food loss and waste reduction, but the report notes these policies are not directly included in the NDCs.

The UK and EU

The UK government relies on voluntary action to reduce food waste. For example, in recent years a number of UK supermarkets have removed “best before” dates from certain products in an effort to reduce waste.

A “best before” date is used to signify when food is at its peak quality. A “use by” date is a stricter rule noting the timeframe by which food is safe to consume.

Removing “best before” dates from fresh products such as apples, bananas and potatoes could help to “prevent 100,000 tonnes of household food waste”, according to a 2022 WRAP report.

Hovis soft white thick loaf of bread with yellow best before date tag. Image ID: E2AEJW.
Hovis soft white thick loaf of bread with yellow best before date tag. Credit: ACORN 1 / Alamy Stock Photo.

However, in terms of official policies, the UK government recently disposed of plans to make food waste reporting mandatory for some businesses. Campaigners criticised the decision and said these measures could have reduced food prices and helped tackle climate change, the Guardian reported.

Reynolds says this decision was a “real shame and a missed opportunity” for the UK government. He tells Carbon Brief:

“Food loss and waste is being measured by many companies already. The majority of the supermarkets already are doing this, it’s just not publicly disclosed. So I think there is already some of this happening, it’s just that a piece of legislation would have levelled the playing field.”

Dr Carrie Bradshaw, a food waste policy expert and lecturer in law at the University of Leeds, adds that mandatory reporting is a “necessary, but not sufficient, measure to tackle food waste”.

Measures are also taking place in certain EU countries and on a wider scale across the bloc.

The European Commission has proposed setting targets for EU countries to reduce food waste by 10% in processing and manufacturing, and by 30% at retail and household level by 2030.

In France, supermarkets are legally required to donate unsold food instead of letting it go to waste. A similar law exists in Italy.

Bradshaw says there are many “economic, social and environmental implications of food waste”. She tells Carbon Brief:

“Arguably in seeking to tackle food waste, we should be aiming not at absolute reductions…but reducing the broader climate and other environmental impacts of food waste.

“Distributing the costs of food waste reduction fairly across the supply chain remains a real challenge for food waste reduction, and is why measures which take a joined-up, whole supply chain approach are likely to be important. This in turn is a limitation of the more targeted efforts you see in France, China or South Korea.”

The US

Food waste remains a growing problem. In the US, food waste grew by almost 5% between 2016 and 2021.

Research suggests that as much as half of all US food produced is left to rot, fed to livestock or put from field to landfill due to “cosmetic standards”, the Guardian reported.

The US department of agriculture advises a number of ways for farmers to reduce food loss and waste – including partnering with food delivery box services or donating food.

At the end of last year, Congress approved the Food Donation Improvement Act which “expands liability protections for the donation of food and grocery products”. A group of US lawmakers also recently proposed federal legislation aimed to halve food waste by 2030.

Compost Collection at the Greenmarket in Union Square in New York. Image ID: D9REGW.
Compost Collection at the Greenmarket in Union Square in New York. Credit: Richard Levine / Alamy Stock Photo.

On a state level, some states offer tax breaks to farmers and businesses who donate food rather than letting it go to waste. Others are diverting food waste away from landfill.

Certain restaurants, cafés, supermarkets and stadiums in New York City are required to separate food scraps and other organic waste.

Since a composting law took effect in California at the start of 2022, every jurisdiction in the state has been required to provide organic waste collection services for households and businesses.

But there has been “uneven progress” on the goal to redirect food waste away from landfill since the “groundbreaking” law was implemented, the Los Angeles Times reports.

King says that a lot of food waste is “preventable”, but she believes there is a lack of incentive for many farmers to avoid it. In some cases, it is not “economically efficient” for farmers to sell slightly imperfect fruits and vegetables, King adds.

China

A Nature study published in 2021 estimated that about 27% – or 349m tonnes – of food went to waste each year from 2014-18 in China.

In 2020, the Chinese government announced the “clean plate campaign” as a measure to tackle food waste and raise public awareness on food security.

Sally Qiu, a research associate at the Center on Global Energy Policy at Columbia University, says this campaign, and an anti-food waste law implemented in 2021, form part of China’s wider focus on food waste.

The anti-food waste law is a “code of conduct for different entities – like government, companies, schools, catering services – to improve their food procurement management process”, Qiu tells Carbon Brief.

She notes that the “clean plate campaign” appears to be “coming from a food security standpoint, rather than a climate crisis standpoint”. She adds:

“One of the side effects is that reducing food waste is good for the climate.”

Staff at a local restaurant put up signs with characters saying "Clean Plate Campaign" to urge people against food waste, Yangzhou city, east China's Jiangsu province, 21 August 2020. Image ID: 2EKE6DK.
Staff at a local restaurant put up signs with characters saying “Clean Plate Campaign” to urge people against food waste, Yangzhou city, east China’s Jiangsu province, 21 August 2020. Credit: Sipa US / Alamy Stock Photo.

Qiu says there has not been a substantial evaluation of progress so far on the success of these initiatives. She says:

“It is a very well-intended campaign. They don’t want people to waste things. But, just based on what I have seen so far, it’s more of an ideal rather than a very substantial achievement [in] reducing a lot of food waste.”

China’s action plan to hit peak emissions by 2030 sets out a goal to “put a resolute stop to wasteful behaviours, and work tirelessly to reduce food waste in the catering industry”. Qiu describes this goal as a “turning point” of the Chinese government making the “connection with food waste and climate change”.

Qiu says the campaign and law are a “good start”, but more tangible targets may have a bigger impact. She tells Carbon Brief:

“These laws and initiatives are more like they’re encouraging people to do certain things. But it didn’t really say what the goal [is]. Peaking carbon has a very clear goal of 2030…I think maybe for food waste, they can come back with more empirical research…Maybe they can set a more quantitative target, an evidence-based target.”

The post In-depth Q&A: What food waste means for climate change appeared first on Carbon Brief.

In-depth Q&A: What food waste means for climate change

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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”

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    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.

    Traditional models still ‘outperform AI’ for extreme weather forecasts

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