Data ReFined #23: Digital Infrastructure for the VCM, Hybrid Climate Models, and Article 6.2 Updates

Data ReFined #23: Digital Infrastructure for the VCM, Hybrid Climate Models, and Article 6.2 Updates
Follow dClimate on Twitter and LinkedIn for more updates and insights!

The Newsletter about Climate Data, Regenerative Finance, and Climate Risk ⛅

Happy New Year from dClimate! As we embark on a new year, we're excited to bring you the latest insights into a range of topics, from carbon financing and digital MRV solutions to new climate datasets and risk models.

In this first edition of the year, we delve into hybrid climate models, Article 6.2 developments, and parametric climate insurance. 👇

Industry News

Comparison of Forest Datasets

The article below explores the distinctions between the University of Maryland's (UMD) dataset and the Tropical Moist Forest (TMF) dataset, both of which track forest changes. Understanding these differences is key to enhancing digital MRV solutions, as each dataset offers unique perspectives and methodologies in assessing forest dynamics.

Tree Cover Loss and Tropical Moist Forest Differences, Explained
We explain key differences between two data sets that track forest change in the tropics: UMD tree cover loss and JRC Tropical Moist Forest.

Hybrid Climate Models

Generative AI platforms have gained mainstream attention over the past year, and this trend is now influencing data-driven climate models. These advanced models incorporate machine learning and generative AI tools alongside traditional physics and chemistry methods to enhance weather forecasting.

The shift towards these hybrid-based models represents a significant development in climate technology. Check out the article linked below for more detailed insights into this evolution.

AI will play a bigger role in predicting weather and climate disasters in the US in 2024, experts say
In 2024, artificial intelligence will likely play a bigger role in predicting climate-related events and saving lives, according to experts.

Enjoying this newsletter? Please consider sharing it with your network. If you are new to this newsletter, feel free to subscribe here.

Digital Infrastructure for the VCM

In an article authored by dClimate's co-founder Sid Jha for Forbes, he discusses how emerging technologies and digital MRV solutions can transform the voluntary carbon market (VCM). Sid highlights the role these digital technologies play in channeling billions of dollars towards climate finance and verifiable conservation of critical Basins.

Council Post: A Path Forward: Why The Voluntary Carbon Market Is Worth Salvaging
As we navigate these decisive times, a revitalized VCM could lead the way, signaling a beacon of hope in our collective journey toward a more sustainable future.

Country-to-Country Carbon Financing

Article 6.2 of the Paris Agreement allows nations to trade emissions reductions and removals. This collaboration mechanism has seen slow but steady growth, with around 70 bilateral deals signed worldwide, according to S&P Global. As technical and jurisdictional challenges are being resolved, there's a noticeable increase in activity, exemplified by the recently completed bilateral agreement between Switzerland and Thailand.

Switzerland, Thailand conclude first Article 6.2 deal in landmark move for carbon markets
Credits emanate from the Bangkok E Bus Programme 1,916 ITMOs credited to KliK Foundation’s in Swiss registry Article 6.2 activity likely to pick up in 2024 Switzerland and Thailand have completed the

Improving data integrity is vital to scaling the growing demand for carbon credits. Digital measurement, verification, and reporting (dMRV) platforms such as CYCLOPS are pioneering new ways of monitoring natural capital.

Digital Carbon Marketplaces

The CEO and co-founder of Senken, a novel digital carbon marketplace, was interviewed on the ReFi Podcast. The conversation covers a range of topics, including balancing corporate customers with Web3 technologies and the challenges and advancements of nature-based carbon credit futures.

Parametric Insurance for Climate Perils

Arbol's recent blog post discusses the climate-related damages experienced in 2023 and explores how parametric insurance can provide financial safeguards against such natural disasters.

Parametric Insurance: Modern Disaster Risk Management
Explore the transformative role of parametric insurance in modern disaster risk management. Discover how it addresses climate challenges and the pioneering solutions offered by Arbol.

EU Deforestation Regulation (EUDR)

The upcoming European regulations, aimed at ensuring deforestation-free products, are set to be implemented in late 2024, impacting several industries, including coffee. In anticipation of these regulations, known as the EUDR, coffee companies are reducing imports from African nations like Ethiopia. Read more about this development in this article from Reuters.

Extreme Weather and Logistics

According to a prediction by Everstream Analytics, a firm specializing in supply chain risk analysis, extreme weather events are expected to be the primary disruptor of logistics and supply chains in 2024. You can find the comprehensive supply risk report via the link below.

Everstream Analytics 2024 Supply Chain Risk Report - Everstream AI
Everstream’s supply chain 2024 Risk Report includes risk scores and extensive data for each of 2024’s Top 5 most likely events. This outlook is based on our comprehensive database of supply chain disruptions and how those impact our clients.

Thank You for Reading! 💙

We appreciate your interest and support! If you find this edition of our newsletter valuable, please share it with your network. It helps to reach this content to a broader audience and increase awareness of the topics discussed.

Join our community on Discord to connect and network with other ReFi enthusiasts and builders in our growing ecosystem.

We love to hear from you!
Please reach us via one of the social channels below if you have suggestions, feedback, and comments.

Twitter | LinkedIn | Discord | Telegram | YouTube

Learn more about the decentralized and open climate data ecosystem we are building via the links below!

🌐 Visit our website
👉 Check out our products
💽 Explore 40+ TB of free climate data via our data marketplace and API