In Earth system modelling, a description of the energy budget of the vegetated surface layer is fundamental as it determines the meteorological conditions in the planetary boundary layer and as such contributes to the atmospheric conditions and its circulation. The energy budget in most Earth system models has been based on a <i>big-leaf approach</i>, with averaging schemes that represent in-canopy processes. Furthermore, to be stable, that is to say, over large time steps and without large iterations, a surface layer model should be capable of implicit coupling to the atmospheric model. Surface models with large time steps, however, have difficulties in reproducing consistently the energy balance in field observations. Here we outline a ne...