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Hunger has, on average, fallen worldwide after hitting 15-year highs in 2021 and 2022.

This is one of the key findings from the latest “State of Food Security and Nutrition in the World” (SOFI) report, an annual assessment produced jointly by the UN Food and Agriculture Organization (FAO), International Fund for Agricultural Development, UN Children’s Fund, World Food Programme and World Health Organization.

The SOFI report also examines the cost of a “healthy” diet around the world, the surge in food price inflation and the contribution of energy and fertiliser prices to overall food inflation.

In a statement, FAO director-general Dr Qu Dongyu said that it is “encouraging” to see the world making progress on hunger, but added: “We must recognise that progress is uneven.” 

Below, Carbon Brief highlights five charts from the report which explain the state of food insecurity around the world.

1. Hunger decreased in recent years in most parts of the world, following sharp increases in 2020-21


Number of undernourished people, globally, from 2005-24 (left) and the prevalence of undernourishment (right) for the world (red), Africa (dark blue), Asia (blue), Latin America and the Caribbean (light blue) and Oceania (cyan) over the same time period. Credit: Carbon Brief, based on the UN State of Food Security and Nutrition in the World report (2025)

Since 1975, the FAO has tracked the prevalence of undernourishment – the proportion of the population in each country who does not regularly consume sufficient amounts of food for sustaining a healthy life.

These estimates are used to assess progress on achieving global goals, such as the 2030 Sustainable Development Goals (SDGs), launched in 2015.

The left-hand chart above shows the number of people facing hunger each year from 2005-24. The right-hand chart shows the percentage of the population facing hunger over this time period for the world as a whole (red), Africa (dark blue), Asia (blue), Latin America and the Caribbean (light blue) and Oceania (cyan).

Over the past 20 years, undernourishment broadly decreased until 2016 and then began to rise sharply in 2020 and 2021. This increase coincided with the Covid-19 pandemic.

The report estimates that the population facing hunger in 2024 was between 638 million and 720 million people, or between 7.8% and 8.8% of the global population.

The report sets its “best estimate” of the population facing hunger at 673 million people, which represents a decrease of 15 million people compared to the previous year.

However, the report notes that the progress made in reducing hunger worldwide has been uneven, as seen in the chart above.

There were improvements in south-west and southern Asia, as well as Latin America, but a continuing rise in hunger in much of Africa and western Asia.

The report also finds that around 2.3 billion people were “moderate or severely food insecure” in 2024, noting that this represents an increase of 683 million more people than when the SDGs was launched a decade ago.

The report projects that by 2030 around 512 million people could face chronic hunger, with 60% of the world’s undernourished people located in Africa.

It highlights that achieving the goal of eliminating hunger by 2030 will be an “elusive target”.

The report warns that the “deteriorating food insecurity” in territories and countries currently affected by humanitarian crises – such as the Gaza Strip, South Sudan, Sudan, Yemen and Haiti – may not be fully reflected in its current estimates.

2. The cost of a healthy diet increased around the world


The number of people around the world who were unable to afford a healthy diet (left) from 2017-24. The cost of a healthy diet per person, per day in purchasing power parity dollars (right) for the world (red), Africa (cyan), Asia (blue), Europe (light blue), Latin America and the Caribbean (dark blue), North America (dark grey) and Oceania (light grey). Credit: Carbon Brief, based on the UN State of Food Security and Nutrition in the World report (2025)

The report finds that the cost of a “healthy” diet rose during 2023 and 2024.

It defines a “healthy” diet as one that comprises a “variety of locally available foods that meet energy and most nutrient requirements”. A healthy diet should be diverse, adequate and balanced, while maintaining moderation in consumption of food related to poor health outcomes, the report says.

In 2019, a healthy diet cost, on average, 3.30 purchasing power parity (PPP) dollars per person, per day. (Purchasing power parity is a type of currency conversion, based on the cost of goods in different locations, that allows one to compare the purchasing power of different currencies.) 

By 2024, increasing food prices had driven this cost up to 4.46 PPP dollars, the report says.

At the same time, the report finds that the proportion of the population unable to afford a healthy diet has decreased every year since 2017, with the exception of 2020. For example, in 2020, the number of people worldwide who could not afford healthy food was 2.9 billion, which fell to 2.6 billion in 2024.

This is due to the economic recovery following the Covid-19 pandemic, which led to an increase in incomes that outstripped the rise in food prices, the report says.

The chart above shows how the global population was unable to afford a healthy diet each year from 2017-24 (left) and the average cost of a healthy diet, in PPP dollars per person, per day (right, red). The right-hand chart also shows the cost in each of six regions: Latin America and the Caribbean (dark blue), Asia (blue), Africa (cyan), Europe (light blue), Oceania (light grey) and North America (dark grey).

However, not all regions experienced the same economic recovery, it adds.

Asia, as a whole, saw the largest decrease in the unaffordability of healthy food – with the proportion of people unable to afford a healthy diet falling from 35% in 2019 to 28% in 2024. In contrast, the unaffordability of healthy diets increased “substantially” in Africa, with two-thirds of the population unable to afford healthy diets in 2024.

The rest of the world’s regions – with the exception of Oceania – saw a “marginal” decrease in the unaffordability of healthy food in recent years, the report says.

There are significant differences in affordability according to national incomes.

In low-income countries, the number of people unable to afford a healthy diet “has been steadily increasing since 2017”, says the report. This is attributed to a recent halt in economic growth and a sharp rise in food prices.

In lower-middle-income countries, that number decreased from 2020 to 2024, mainly due to improvements in affordability in India.

Conversely, in upper-middle- and high-income countries, the number of people unable to afford healthy food has been declining since 2020.

The report concludes that “people who are unable to afford even a least-cost healthy diet are likely experiencing some level of food insecurity”.

3. Food price inflation outstripped general inflation over 2019-25


Consumer price index (blue) and food consumer price index (red) from 2015-25, using 2015 as a reference year. Credit: Carbon Brief, based on the UN State of Food Security and Nutrition in the World report (2025)

The report finds that food price inflation has “significantly” outstripped general inflation over the past five years. Median global food price inflation rose from 2.3% in December 2020 to 13.6% in January 2023.

The chart above shows consumer price index (blue) – which includes price changes to all of the items a household typically consumes – and the consumer food price index (red) over 2015-25, with 2015 taken as the reference year.

The highest rates of inflation occurred in low-income countries, with several countries experiencing “hyperinflation”, including inflation levels above 350%. The report explains that most households in low-income countries source much of their food from local markets, which are more vulnerable to price shocks.

The authors attribute the heightened inflation to a combination of factors that includes the Covid-19 pandemic, the war in Ukraine and shifting monetary policy – from lowering interest rates and launching fiscal support at the beginning of the pandemic to raising interest rates to combat surging prices. 

According to the report, previous food-price shocks – such as the one that occurred during the 2008 global financial crisis – were “predominantly” driven by supply, while the current surging inflation was driven initially by demand.

Supply-side shocks occur when production or distribution of food are disrupted by external factors, resulting in a “steep and prolonged rise in food prices”. Supply-side shocks create “persistent inflationary pressures”, the report says.

Demand-side shocks – a “sudden and unexpected increase in consumer demand for food products” – are often due to economic growth and changes in consumption patterns. (The report cites as an example the Covid-19 pandemic, which led to a “surge” in demand for food at home.) Demand-side shocks are characterised by rapid increases in price, but do not typically have a long-term impact.

In addition to the global factors driving food inflation, localised shocks – such as extreme weather events – impacted inflation on sub-national and national scales, by destroying crops, disrupting supply chains and suppressing household incomes. 

Since 2020, the report says, 139 out of 203 countries have faced cumulative food price inflation above 25%, with 49 countries experiencing cumulative food inflation higher than 50%. It warns:

“Such prolonged food price pressures risk undermining household coping capacities and worsening food insecurity.”

According to the report, food price rises of 10% are associated with a 3.5% rise in “moderate or severe” food insecurity, with women “disproportionately affected”.

It also notes that food price inflation has previously been found to have “detrimental effects on child nutrition”, particularly among vulnerable populations.

4. Gas price shocks contributed to high commodity prices


Contribution of food price shocks (left) and food and energy price shocks (right) to global commodity food prices, from 2019-25. Overall fluctuations in food commodity prices are shown in dark blue on both charts. Credit: Carbon Brief, based on the UN State of Food Security and Nutrition in the World report (2025)

Rising food prices were amplified by rising energy costs over the past several years, the report says.

It points out that oil and gas are “key input[s] in agriculture production – from fertiliser manufacturing through to transportation”.

(Nitrogen-based fertilisers are typically produced using fossil gas as an input. The process of manufacturing them is an energy-intensive one – accounting for about 1% of all global energy usage.)

The report cites two “waves” of shocks that “largely shaped” the changes in agricultural commodity prices over 2020-22.

The first wave, it says, occurred early in the Covid-19 pandemic as food supplies contracted due to supply-chain disruptions, as well as “precautionary trade restrictions and increased stockpiling”.

Global energy markets were further “destabilised” by the second shockwave – Russia’s invasion of Ukraine in February 2022. Prior to the outbreak of the war, Russia was the third-largest producer of oil and the second-largest producer of fossil gas in the world. 

The war resulted in “significant price increases and heightened volatility”, which translated into higher production costs economy-wide, the report says.

The initial surge at the beginning of the pandemic contributed about 15 percentage points to global food inflation, while the war in Ukraine added 18 percentage points, the report says.

The charts above show global food price inflation (black lines) over 2019-25. The blue line in the left panel shows the contribution of “food price shocks”, such as the disruption of the Black Sea trade corridor and the decline in fertiliser exports from Russia. In the right panel, the red line shows the contribution of both food price and energy price shocks to food inflation.

According to the report, the rise in agricultural and energy commodity prices account for nearly half of food price inflation in the US and more than one-third of food price inflation in the Euro area during peak inflation over the past few years.

It adds that the remaining inflation is explained by several other factors, “including rising labour costs, exchange rate fluctuations and pricing behaviour along the supply chain”.

5. Fertiliser prices have remained high following Russia’s invasion of Ukraine


Monthly price of phosphate rock (blue), diammonium phosphate fertiliser (dark red) and triple superphosphate fertiliser (light red) from 1970-2025. Credit: Carbon Brief, based on the UN State of Food Security and Nutrition in the World report (2025)

The report notes that Russia’s invasion of Ukraine in February 2022 upended global fertiliser markets due to economic sanctions against Russia and Belarus – two of the world’s largest fertiliser exporters.

In 2020, Russia exported 14% of globally traded urea, the most commonly used nitrogen fertiliser. Belarus and Russia combined account for more than 40% of traded potash, a key potassium fertiliser.

While many of the sanctions against Russia following the outbreak of the war specifically omitted fertilisers and agricultural commodities, the report notes that restrictions on banking and trade increased the “cost of doing business” and restricted the ability of countries to purchase food and fertilisers from Russia.

However, the report points out, global potassium fertiliser prices were already on the rise prior to Russia’s invasion of Ukraine, due to export restrictions on fertilisers from China.

Similar trade measures on fertilisers – both export restrictions and import tariffs – have “played a role” in price spikes during previous episodes of global food price crises, including in 2007-08 and 2011-12, the report says.

The report looks specifically at phosphate fertilisers, noting that those prices have “historically been shaped by both long-term structural trends and short-term shocks”. These factors include trade restrictions, energy costs, geopolitical tensions and imbalances in supply and demand.

The chart above shows the monthly price of phosphate rock (blue), diammonium phosphate (dark red) and triple superphosphate (light red) from 1970 to 2025.

(Phosphate rock is the raw material used to manufacture most phosphate-based fertilisers, while diammonium phosphate and triple superphosphate are two commonly used phosphate fertilisers.)

Export restrictions were “critical factors” in driving the three major historical phosphate price spikes highlighted in the chart – in 1974, 2008 and 2021-22.

Given the small number of countries that produce phosphate fertilisers – their production is highly concentrated in China, the US, India, Russia and Morocco – these actions “exacerbat[e] global shortages”, the report says.

The report also points out that the concentration of agricultural markets – including the fertiliser market – is a “systemic issue that undermines efficiency and affordability” in both low- and high-income countries.

The post UN report: Five charts explaining the rise of global food insecurity appeared first on Carbon Brief.

UN report: Five charts explaining the rise of global food insecurity

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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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