Follow the Money

How dangerous are wildfires and how can we stop them from getting worse?

Heatwaves and dry weather are driving larger wildfires across Europe and North America; while climate change raises fire risk, financial and policy choices by fossil fuel companies, developers, insurers, and governments influence exposure and who pays the costs. Expect pressure over funding prevention (controlled burns, fuel management), building rules in fire-prone areas, and long-term climate policy.

Why this matters: Wildfires directly kill hundreds of people each year.

What happened

Heatwaves and dry weather have fed big, fast-moving wildfires in places from Europe to North America. Smoke from those fires has crossed oceans and darkened city skies far from the flames.

Scientists say fossil-fuel pollution has warmed the planet about 1.3C. That makes long hot stretches more likely. Those stretches turn forests and grass into easy fuel for fires.

Who wins here

No single person 'wins' from fires. But some groups gain power or money from how the problem is handled. Fossil fuel companies keep selling fuels while governments delay big emissions cuts.

Local contractors and insurers can make money rebuilding after fires. Land developers sometimes push to build in risky places, shifting costs to taxpayers and homeowners.

How the play works

There are two big mechanisms at work. One is climate change, which raises the odds of extreme heat and drought. That physically makes fires start and spread faster.

The other is human choices. We put homes in fire-prone areas, let fuels build up in forests, and under-invest in prevention. These choices turn small fires into disasters.

Why it matters

Fires also hit local economies. People lose homes and farms. City air quality suffers, which raises health bills and cuts worker hours. When costs shift to taxpayers, poorer households feel it most.

What to watch next

Watch three things. First, whether local and national leaders fund more prevention like controlled burns and fire breaks. Second, if rules change on building in risky places or on power-line safety.

Third, track climate policy. Faster cuts to fossil fuels will lower long-term fire risk. Short of that, expect more years with high fire danger and bigger costs for everyday people.

LensFollow the Money
TypeReporting
PublishedJuly 24, 2026
Read time3 min read
SourceThe Guardian
Where the facts come from

The facts in this story were first reported by The Guardian. What you're reading here is our take on what it means for power and for you.

Read the original at The Guardian
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wildfiresclimate changefossil fuelsland useinsurancepublic healthEuropeUnited StatesCanadadisaster policy
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