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It’s flawed, but not worthless. Here’s how you should think about it.

Starting this month, the tens of millions of Americans who browse the real-estate listings website Zillow will encounter a new type of information.
In addition to disclosing a home’s square footage, school district, and walkability score, Zillow will begin to tell users about its climate risk — the chance that a major weather or climate event will strike in the next 30 years. It will focus on the risk from five types of dangers: floods, wildfires, high winds, heat, and air quality.
The data has the potential to transform how Americans think about buying a home, especially because climate change will likely worsen many of those dangers. About 70% of Americans look at Zillow at some point during the process of buying a home, according to the company.
“Climate risks are now a critical factor in home-buying decisions,” Skylar Olsen, Zillow’s chief economist, said in a statement. “Healthy markets are ones where buyers and sellers have access to all relevant data for their decisions.”
That’s true — if the information is accurate. But can homebuyers actually trust Zillow’s climate risk data? When climate experts have looked closely at the underlying data Zillow uses to assess climate risk, they have walked away unconvinced.
Zillow’s climate risk data comes from First Street Technology, a New York-based company that uses computer models to estimate the risk that weather and climate change pose to homes and buildings. It is far and away the most prominent company focused on modeling the physical risks of climate change. (Although it was initially established as a nonprofit foundation, First Street reorganized as a for-profit company and accepted $46 million in investment earlier this year.)
But few experts believe that tools like First Street’s are capable of actually modeling the dangers of climate change at a property-by-property level. A report from a team of White House scientific advisors concluded last year that these models are of “questionable quality,” and a Bloomberg investigation found that different climate risk models could return wildly different catastrophe estimates for the same property.

Not all of First Street’s data is seen as equally suspect. Its estimates of heat and air pollution risk have generally attracted less criticism from experts. But its estimates of flooding and wildfire risk — which are the most catastrophic events for homeowners — are generally thought to be inadequate at best.
So while Zillow will soon tell you with seeming precision that a certain home has a 1.1% chance of facing a wildfire in the next 30 years, potential homebuyers should take that kind of estimate with “a lot of grains of salt,” Michael Wara, a senior research scholar at the Stanford Woods Institute for the Environment, told me.
Here’s a short guide for how to think through Zillow’s estimates of climate risk.
Neither First Street nor Zillow immediately responded to requests for comment.
Zillow has said that, when the data is available, it will tell users whether a given home has flooded or burned in a wildfire recently. (It will also say whether a home is near a source of air pollution.)
Homebuyers should take that information seriously, Madison Condon, a Boston University School of Law professor who studies climate change and financial markets, told me.
“If the house flooded in the recent past, then that should be a major red flag to you,” she said. Houses that have flooded recently are very likely to flood again, she said. Only 10 states require a home seller to disclose a flood to a potential buyer.
First Street claims that its physics-based models can identify the risk that any individual property will flood. But the ability to determine whether a given house will flood depends on having an intricate knowledge of local infrastructure, including stormwater drains and what exists on other properties, and that data does not seem to exist in anyone’s model at the moment, Condon said.
When Bloomberg compared the output of three different flooding models, including First Street’s, they agreed on results for only 5% of properties.
If you’re worried about a home’s flood risk, then contact the local government and see if you can look at a flood map or even talk to a flood manager, Condon said. Many towns and cities keep flood maps in their records or on their website that are more granular than what First Street is capable of, she said.
“The local flood manager who has walked the property will almost always have a better grasp of flood risk than the big, top-down national model,” she said.
In some cases, Zillow will recommend that a home buyer purchase federal flood insurance. That’s generally not a bad idea, Condon said, even if Zillow reaches that conclusion using national model data that has errors or mistakes.
“It simply is true that way more people should be buying flood insurance than generally think they should,” she said. “So a general overcorrection on that would be good.”
If you’re looking at buying a home in a wildfire-prone area, especially in the American West, then you should generally assume that Zillow is underestimating its wildfire risk, Wara, the Stanford researcher, told me.
That’s because computer models that estimate wildfire risk are in a fairly early stage of development and improving rapidly. Even the best academic simulations lack the kind of granular, structure-level data that would allow them to predict a property’s forward-looking wildfire risk.
That is actually a bigger problem for homebuyers than for insurance companies, he said. A home insurance company gets to decide whether to insure a property every year. If it looks at new science and concludes that a given town or structure is too risky, then it can raise its premiums or even simply decline to cover a property at all. (State Farm stopped selling home insurance policies in California last year, partly because of wildfire risk.)
But when homeowners buy a house, their lives and their wealth get locked into that property for 30 years. “Maybe your kids are going to the school district,” he said. It’s much harder to sell a home when you can’t get it covered. “You have an illiquid asset, and it’s a lot harder to move.”
That means First Street’s wildfire risk data should be taken as “absolute minimum estimate,” Wara said. In a wildfire-prone area, “the real risk is most likely much higher” than its models say.
Over the past several years, runaway wildland fires have killed dozens of people or destroyed tens of thousands of homes in Lahaina, Hawaii; Paradise, California; and Marshall, Colorado.
But in those cases, once the fire began incinerating homes, it ceased to be a wildland fire and became a structure-to-structure fire. The fire began to leap from house to house like a book of matches, condemning entire neighborhoods to burn within minutes.
Modern computer models do an especially poor job of simulating that transition — the moment when a wildland fire becomes an urban conflagration, Wara said. Although it only happens in perhaps 0.5% of the most intense fires, those fires are responsible for destroying the most homes.
But “how that happens and how to prevent that is not well understood yet,” he said. “And if they’re not well understood yet from a scientific perspective, that means it’s not in the [First Street] model.”
Nor do the best university wildfire models have good data on every individual property’s structural-level details — such as what material its walls or roof are made of — that would make it susceptible to fire.
When assessing whether your home faces wildfire risk, its structure is very important. But “you have to know what your neighbor’s houses look like, too, within about a 250-yard radius. So that’s your whole neighborhood,” Wara said. “I don’t think anyone has that data.”
A similar principle goes for thinking about flood risk, Condon said. Your home might not flood, she said, but it also matters whether the roads to your house are still driveable or whether the power lines fail. “It’s not particularly useful to have a flood-resilient home if your whole neighborhood gets washed out,” she said.
Experts agree that the most important interventions to discourage wildfire — or, for that matter, floods — have to happen at the community level. Although few communities are doing prescribed burns or fuel reduction programs right now, some are, Wara said.
But because nobody is collecting data about those programs, national risk models like First Street’s would not factor those programs into an area’s wildfire risk, he said. (In the rare case that a government is clearing fuel or doing a prescribed burn around a town, wildfire risk there might actually be lower than Zillow says, Wara added.)
Going forward, figuring out a property’s climate risk — much like pushing for community-level resilience investment — shouldn’t be left up to individuals, Condon said.
The state of California is investing in a public wildfire catastrophe model so that it can figure out which homes and towns face the highest risk. She said that Fannie Mae and Freddie Mac, the federal entities that buy home mortgages, could invest in their own internal climate-risk assessments to build the public’s capacity to understand climate risk.
“I would advocate for this not to be an every-man-for-himself, every-consumer-has-to-make-a-decision situation,” Condon said.
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What are the health risks? How can I protect myself? And will my plants be okay?
If you live anywhere near the Great Lakes or Mid-Atlantic (or certain parts of the Mountain West), odds are it’s smoky where you live. Wildfires raging in western Ontario are sending smoke cascading south and east across the U.S., prompting widespread air quality alerts affecting millions of Americans.
The good and — very bad — news is that we’ve been here before. Here’s a look back at some of Heatmap’s coverage from the summer of 2023, when smoke produced by forest fires in Quebec blanketed 128 million people in a murky haze and turned the New York City skyline an ominous shade of orange.
One day — even just one hour — of smoke inhalation can exacerbate pre-existing health conditions and increase an individual’s chance of premature death by 12%. To stay safe, Jeva Lange recommends avoiding prolonged outdoor exposure and masking up when you go outside.
Wildfire smoke is full of tiny pollutants that can leak into your apartment even when the windows and doors are sealed tight. That’s where air purifiers come in, Matthew Zeitlin writes.
Tinted skies are now a rare, remarkable event. But decades ago, before targeted policy interventions, this was everyday life for New Yorkers. Here’s Jeva with more on the legacy of the Clean Air Act.
Before you step out for a run, read Emily Pontecorvo’s guide to what the Air Quality Index is and isn’t telling you.
People should not inhale smoke because of its dangerous health effects. But plants, interestingly, may actually thrive. Allow Jeva to explain.
Current conditions: Wildfire smoke tinted the skies orange across the Northeastern United States, rendering the air on New York’s Long Island thick and hazy all afternoon • London is a balmy 83 degrees Fahrenheit today, but new research shows that the number of days topping 86 degrees has quadrupled since the 1980s • Chile declared a state of emergency across 10 regions ahead of a series of major storms.
The resumption of fighting between the United States and Iran over the Strait of Hormuz could hammer energy markets harder than the previous phase of the conflict, as the crude stockpiles governments tapped at a record volumes to avert the worst economic impact of the war are now depleted. That’s the warning oil traders issued to the Financial Times on Wednesday. “We’ve burned through all of the buffers we had. Everything,” one trader said. “All of that’s now gone.” The gloomy assessment came as The Wall Street Journal reported that President Donald Trump has weighed expanding the U.S. military operation in Iran.
The U.S. Energy Information Administration, meanwhile, released its short-term energy outlook for July, in which the agency estimated that global crude oil inventories declined by 5.1 million barrels per day throughout the second quarter of this year, marking a decline above the seasonal average for that period over the past five years. Even before the conflict picked up again, my colleague Matthew Zeitlin wrote that it would be a long time before the Strait of Hormuz returned to normal operations. Don’t hold your breath.

In the steamy final weeks of August 2019, I found myself on Puerto Rico’s southeast shores. Set against the backdrop of the island’s central mountain range with streams that quench its underground aquifers, this sun-soaked coastal plain was coveted by Spanish and American sugar barons for centuries before transforming into a hub for U.S. agribusiness in recent decades. By the time I arrived, the aquifer was facing threats on multiple fronts. The Puerto Rico Aqueduct and Sewer Authority — known as PRASA or AAA in its Spanish acronym — was losing, by some estimates, more than half the water in its system to leakage, forcing the state-owned utility to draw more from aquifers. With the island’s electrical system still in tatters from Hurricane Maria and its debt at crushing levels, PRASA had little capacity to make the upgrades needed to prevent further decline. Meanwhile, local environmentalists accused regulators of providing little to no oversight of how much water industrial facilities drew from their wells. The story I ultimately reported suggested that water would follow electricity as the next major infrastructure crisis. It was just being felt first, at that time, in places like the town of Salinas, where people like Manases Vega — then a 65-year-old with a chronic respiratory illness — lost access to water every two weeks due to rationing.
Now the crisis has indeed spread. Last month, I told you when Governor Jenniffer González Colón called in the National Guard to help after a major water pipeline cracked. More than a month later, El Nuevo Día reported that the ongoing shortages are forcing residents to pay up to $700 per week for water. Businesses are paying up to $3,500 per week to buy enough bottles to cook, clean, and flush toilets. Hotels are spending up to $100,000, the island’s newspaper of record also reported last week. “We were without water for more than 50 days here on Calle Loíza,” Jonathan Collazo, a restaurant owner, said, referring to the popular street with bars and restaurants in Santurce, roughly the equivalent of San Juan’s Williamsburg.
For 12 years, Péter Szijjártó served as Hungary’s top diplomat in the government of former Prime Minister Viktor Orbán. On Wednesday, he announced his resignation from parliament to take a job at China’s top electric automaker. “I have received an extremely honorable offer to fill an international position from one of the world’s leading companies,” he wrote in a post on Facebook. “BYD is one of the greatest automotive success stories of the past twenty years and is also the world’s leading manufacturer of new energy vehicles.” His critics may quibble with the word “honorable.” Szijjártó established his relationship with the company while serving as foreign minister, and his government had planned to provide subsidies to BYD to open its new hub in Budapest. Just a few months ago, CNBC reported that the European Union was investigating labor violations at BYD’s factory in Szeged. Last month, the Hungarian investigative site 444 reported that a worker died at the plant.
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The Department of Energy has granted the startup SuperCritical Materials an exclusive license to commercialize patented technology to extract uranium from seawater. The deal requires the Austin-based company to manufacture and deploy the technology in the U.S. before exporting to allied nations, according to The Northern Miner. The concept of drawing uranium out of seawater has existed for years, an idea that took root before the vast new reserves of the metal were discovered on land. But seawater extraction remained on the agenda in countries without access to mines. When I visited the Philippines in 2024 to report on the country’s nuclear ambitions, I met scientists at the state atomic energy agency who were researching methods to secure a uranium supply from the water. But Ted Garrish, the assistant U.S. secretary of nuclear energy, said “this technology represents a potentially significant contribution to America’s long-term fuel security and industrial competitiveness.”
On Tuesday, New York Governor Kathy Hochul signed an executive order enacting the nation’s first statewide moratorium on data centers. On Wednesday, Michigan Governor Gretchen Whitmer, a fellow Democrat, staked out a different position, unveiling what E&E News called a “package of 10 commitments to ensure companies pay the full cost of construction, operation, power, and water” from new data centers for artificial intelligence. “On my watch, Michiganders have been protected from any rate increases due to data center development and we adopted some of the strongest protections for people and communities, but we need to do more,” Whitmer said in a statement.
“It’s been exciting to see different states — and, to be blunt, to see Democratic-governed states, particularly those in the Northeast and Mid-Atlantic — try to take on the data center boom. It’s good to see them test out ideas, solve problems through legislation, and harness this moment for the public good without strangling the buildout entirely,” my colleague Robinson Meyer wrote yesterday. “For too long, blue states have leaned into a particular economic model, one in which states want to attract varying forms of development but in fact succeed only in creating new suburbs, office buildings, and warehouses.”
It is, according to Bloomberg, “the plastic America loves to hate.” But a new industry group wants to save polystyrene by convincing lawmakers to stop targeting styrofoam. Formed by 17 companies that produce the material, the Polystyrene Recycling Alliance aims to forestall bans by making sure styrofoam is treated as recyclable under state packaging laws. “There’s the narrative that polystyrene is not part of the circular future,” Justin Riney, chair of the alliance and an executive at manufacturer Ineos Styrolutions, told the newswire. “We are adamant that we have the data, and we know that our products are part of the future.”
Proposed reforms to Europe’s Emissions Trading System could see the EU itself become a carbon credit customer.
The European Union is on the verge of making major changes to its carbon market, including integrating carbon removals into the scheme for the first time.
The bloc’s highest governing body, the European Commission, is expected to publish a proposal on Friday to reform the EU Emissions Trading System, or ETS, to align it with the EU’s 2040 emissions target. Under the current rules, companies cannot use carbon credits of any kind to comply with the regulations. But as 2040 grows closer, the EU plans to rely on carbon removal to offset some of the residual emissions from industries that are the most difficult to decarbonize.
Friday’s proposal will cover which types of carbon removal will be accepted, how many carbon removal credits can enter the market and when, and who will be allowed to buy them. One leading approach would have the EU government buy carbon removal directly, which would give the industry unprecedented market certainty.
“The ETS could be the single biggest driver of demand for carbon removal for the next decade,” Felix Grey, a policy manager for the carbon registry Isometric, told me.
The ETS enforces a cap on emissions that declines over time. Large emitters located in the EU must buy “allowances” for each ton of carbon they release, while the pool of available allowances shrinks apace with the emissions cap. Last year, the EU set a new target to reduce emissions 90% below 1990 levels by 2040, building off its earlier target of a 55% reduction by 2030. The upcoming proposal will address how the market should operate between 2030 and 2040 to achieve that goal.
There are many contentious questions surrounding this next phase, including how quickly the cap should decline over the decade. Another question is how many free allowances the EU should give to energy-intensive facilities such as steelmakers and fertilizer producers, which it does to prevent them from leaving Europe due to higher operating costs. Now that the EU has launched its carbon border adjustment mechanism, which taxes higher-carbon imports of these goods, free allowances may not be as necessary.
The integration of carbon removal is also controversial. At best, it could be an opportunity to improve and scale up nascent technologies that take carbon out of the atmosphere. At worst, it could enable polluters to avoid cutting their own emissions by purchasing carbon credits that don’t represent real climate benefits. Then there’s the possibility that removals will be so expensive that their integration into the ETS will have no effect at all — that is, it will be less expensive for companies to pursue emissions reductions than to buy their way out. The outcome will depend on the rules the EU Commission proposes and what its member states ultimately agree to.
Today, most carbon removal efforts are supported by research grants and voluntary carbon credit purchases from companies like Microsoft. A common mantra in the industry is that it will never reach a meaningful scale without government backing. Carbon removal startups aren’t selling a product with inherent value, they are selling a waste management solution. Unless governments require polluters to clean up their carbon waste, or else handle the job themselves as a public good, carbon removal will never take off.
Some governments have already dabbled in state-sponsored removals. Under the Biden administration, the U.S. launched a carbon removal purchase pilot prize, dedicating $35 million to buy carbon removal from a handful of promising companies. It never got past the initial award phase, however, and the Trump administration has not continued the program. A number of cities and counties across the U.S. have set up their own, much smaller purchasing programs in an effort to support the industry. Making carbon removal part of a regulatory program like the EU’s ETS could open the industry to a much bigger market.
As of today, there are a few knowns and a few unknowns about what the Commission plans to propose. For example, it’s relatively clear what methods of carbon removal the European Commission will allow into the market. Earlier this year, the EU finalized regulations for certifying three kinds of carbon removal under its official Carbon Removal and Carbon Farming scheme — direct air capture, biomass with carbon capture, and biochar projects — laying out criteria for quality as well as monitoring and reporting rules. For now, only these three project types can be considered.
Here’s the problem: Direct air capture and biomass with carbon capture are two of the most expensive project types. The average carbon removal credit from these methods costs hundreds of dollars. The average price of an allowance in the ETS, by contrast, has hovered between $70 and $90 over the past few years. Depending on how the Commission chooses to incorporate the credits into the market, it’s possible that no one will buy them.
The European Commission has said it is considering three options. The leading proposal is for the EU to create a central purchasing authority that buys removals using revenues from the ETS. For each removal credit the government acquires, it would issue an additional allowance into the market on top of the established cap. This would enable regulated facilities to emit a bit more than they could otherwise — a tradeoff that Grey argued would help them stay competitive. At the same time, it would also ensure that there’s demand for carbon removal regardless of the price.
The second option is to leave it to the market, giving emitters the option to purchase carbon removal credits as an alternative to purchasing allowances. In this version, similar to the first, the carbon removal credits would enter the market as an addition to the established amount of allowances. Whether or not anyone actually buys carbon removal will depend on how tight the allowance market is.
In the third option, emitters would be able to use carbon removal credits in lieu of allowances, but those credits would operate “below the cap,” so to speak. For every credit counted toward the ETS, regulators would reduce the number of allowances available to purchase by the same amount. It is hard to see why any company would purchase carbon removal in this version unless and until the price of a credit drops below the price of an allowance, however.
Carbon Market Watch, a nonprofit watchdog group, isn’t excited about any of these options. In a recent white paper on ETS reforms, it argued that Europe should support carbon removal separate from the ETS. “Direct integration of CDR in the ETS is either a dead end, or the start of a slippery slope,” the group warned. Carbon Market Watch also has concerns about the integrity of the EU’s carbon removal certification scheme. The group has formally challenged the methodologies for certifying biochar and biomass with carbon capture projects, arguing that they do not account for all the emissions associated with these processes, lack sustainable biomass sourcing safeguards, and in the case of biochar, are missing monitoring requirements. If ETS credits are built on faulty science, the EU could end up spending billions of dollars to little climate benefit.
The other big question about the integration is the amount of carbon removal the EU will allow into the market. Even if the bloc decides to create a central purchasing authority, its potential to help the industry scale will depend on how much it commits to buying. Grey, of Isometric, argued that staying on course for net zero by 2050 would require the EU to remove about 100 million metric tons of carbon per year by 2040.
“A strong proposal on Friday will confirm carbon removal’s integration from 2031, commit to buying removal at the scale required to meet net zero, and treat every credible method equally rather than picking winners,” he said.