Satellite observations reveal a greening of the globe over recent decades. The role in this greening of the “CO₂ fertilization” effect—the enhancement of photosynthesis due to rising CO₂ levels—is yet to be established. The direct CO₂ effect on vegetation should be most clearly expressed in warm, arid environments where water is the dominant limit to vegetation growth. Using gas exchange theory, we predict that the 14% increase in atmospheric CO₂ (1982–2010) led to a 5 to 10% increase in green foliage cover in warm, arid environments. Satellite observations, analyzed to remove the effect of variations in precipitation, show that cover across these environments has increased by 11%. Our results confirm that the anticipated CO₂ fertilization effect is occurring alongside ongoing anthropogenic perturbations to the carbon cycle and that the fertilization effect is now a significant land surface process.

The Budyko curve describes the patterns observed between between climate, evapotranspiration and run-off and has proven to be a useful model for predicting catchment energy and water balances. In this paper we review the Budyko curve's underlying framework and, based on the literature, present an argument for why it is important to include vegetation dynamics into the framework for some purposes. The Budyko framework assumes catchments are at steady-state and are driven by the macro-climate, two conditions dependent on the scales of application, such that the framework's reliability is greatest when applied using long-term averages (≫1 year) and to large catchments (>10 000 km²). At these scales previous experience has shown that the hydrological role of vegetation does not need to be explicitly considered within the framework. By demonstrating how dynamics in the leaf area, photosynthetic capacity and rooting depth of vegetation affect not only annual and seasonal vegetation water use, but also steady-state conditions, we argue that it is necessary to explicitly include vegetation dynamics into the Budyko framework before it is applied at small scales. Such adaptations would extend the framework not only to applications at small timescales and/or small catchments but to operational activities relating to vegetation and water management.

Drought, generally characterized by below‐average water supply, propagates through the hydrologic system with consequent ecological and societal impacts. Compared with other drought aspects, the recovery of drought especially in the hydrological components, which directly relates to the recovery of water resources for agricultural, ecological and human needs, is less‐understood. Here, taking the Millennium drought in southeast Australia (∼1997–2009) as an illustrating case, we comprehensively examined multiple aspects of the meteorological (i.e., precipitation) and hydrological (i.e., streamflow and base flow) droughts across 130 unimpaired catchments using long‐term hydro‐meteorological observations. Results show that the duration and intensity of the meteorological drought are both lengthened and amplified in the hydrological drought, suggesting a nonstationarity in the rainfall‐runoff relationship during a prolonged drought. Additionally, we find a time lag commonly exists between the end of the meteorological droughts and the end of the hydrological drought, with the recovery of base flow showing a longer lag than the recovery of streamflow. The recovery rate of precipitation after drought was found to be the dominant factor that controls the recovery of hydrological droughts while catchment landscape (i.e., valley bottom flatness) plays an important but secondary role in controlling the lags in the hydrological recovery. Other hydro‐climatic factors and catchment properties appear to have only minor influences governing hydrological drought recovery. Our findings highlight a delayed response in the terrestrial components of the hydrological cycle to precipitation after prolonged drought, and provide valuable scientific guidance to water resources management and water security assessment in regions facing future droughts.