AbstractScientific innovation is overturning conventional paradigms of forest, water, and energy cycle interactions. This has implications for our understanding of the principal causal pathways by which tree, forest, and vegetation cover (TFVC) influence local and global warming/cooling. Many identify surface albedo and carbon sequestration as the principal causal pathways by which TFVC affects global warming/cooling. Moving toward the outer latitudes, in particular, where snow cover is more important, surface albedo effects are perceived to overpower carbon sequestration. By raising surface albedo, deforestation is thus predicted to lead to surface cooling, while increasing forest cover is assumed to result in warming. Observational data, however, generally support the opposite conclusion, suggesting surface albedo is poorly understood. Most accept that surface temperatures are influenced by the interplay of surface albedo, incoming shortwave (SW) radiation, and the partitioning of the remaining, post‐albedo, SW radiation into latent and sensible heat. However, the extent to which the avoidance of sensible heat formation is first and foremost mediated by the presence (absence) of water and TFVC is not well understood. TFVC both mediates the availability of water on the land surface and drives the potential for latent heat production (evapotranspiration, ET). While latent heat is more directly linked to local than global cooling/warming, it is driven by photosynthesis and carbon sequestration and powers additional cloud formation and top‐of‐cloud reflectivity, both of which drive global cooling. TFVC loss reduces water storage, precipitation recycling, and downwind rainfall potential, thus driving the reduction of both ET (latent heat) and cloud formation. By reducing latent heat, cloud formation, and precipitation, deforestation thus powers warming (sensible heat formation), which further diminishes TFVC growth (carbon sequestration). Large‐scale tree and forest restoration could, therefore, contribute significantly to both global and surface temperature cooling through the principal causal pathways of carbon sequestration and cloud formation.