Data ReFined #25: Market Pricing Dynamics in the VCM, Core Carbon Principles, and Carbon Credit Insurance

Data ReFined #25: Market Pricing Dynamics in the VCM, Core Carbon Principles, and Carbon Credit Insurance
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The Newsletter about Climate Data, Regenerative Finance, and Climate Risk β›…

Thank you for opening the latest edition of dClimate's biweekly newsletter! In this special issue, we focus on the latest in carbon finance, featuring our article on carbon credit market pricing dynamics and a comprehensive report from BCG on the voluntary carbon market (VCM). Additionally, we cover Arbol's recent write-up about climate insurance and discuss China's satellite launch aimed at enhancing precipitation data accuracy.

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Industry News

Deciphering the Carbon Credit Marketplace

The carbon credit marketplace can be compared to traditional commodities and its various stakeholder types, including project developers, traders, and corporations. Our latest article outlines the factors influencing carbon credit prices and discusses the complexity of price discovery due to predominantly over-the-counter transactions.

Read the full article below for all the details!

Price Dynamics in the Voluntary Carbon Market
Catalyzing Environmental Impact through the Voluntary Carbon Market The Voluntary Carbon Market (VCM) and its mitigation impacts have been identified as one of the solutions to help the world achieve its ambitious environmental and sustainable goals. By facilitating investments in diverse projects - from enhancing energy efficiency with cookstoves in

Demand for Quality Emissions Credits Continues to Grow

BCG's latest report, in partnership with Shell, details the voluntary carbon market's rapid growth and changing dynamics. From $2 billion in 2021 to a projected $40 billion by 2030, the focus on more robust MRV methodologies, removal credits, and the influence of Article 6 underline a strategic shift.

The Voluntary Carbon Market Is Thriving
A global survey of climate and sustainability executives reveals that the demand for quality emissions credits continues to grow.

Core Carbon Principles (CCPs) for the VCM

The Integrity Council for the Voluntary Carbon Market (ICVCM) has initiated the assessment of over 100 carbon credit methodologies against the high-integrity Core Carbon Principles (CCPs). The assessment aims to enhance the credibility and integrity of carbon credits in the market, with carbon-crediting programs that meet the CCP criteria being eligible to use the CCP label on new and existing credits.

Integrity Council reaches new milestone, assessing 100 carbon credit methodologies against high-integrity benchmark - ICVCM
The Integrity Council for the Voluntary Carbon Market has taken a major step towards ensuring high-quality carbon credits, announcing the review of over 100 methodologies against its rigorous Core Carbon Principles.

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Understanding the Evolution and Future of Climate Insurance

A recent article from Arbol explores the concept of climate insurance, from its early community-based arrangements to contemporary policies designed for weather-related risks. Arbol advocates for updated risk models, alternative risk capacities, and innovative solutions like parametric insurance to manage these emerging challenges better.

What is Climate Insurance?
Learn how innovations like parametric coverage and advanced data analytics are shaping the future of climate insurance, offering resilience in the face of natural disasters.

Carbon Credit Insurance - Market Research

A new report by Oxbow Partners and Kita predicts the carbon credit insurance market could reach $1 billion by 2030 and expand to $10-30 billion by 2050, highlighting four key benefits insurance brings to the carbon markets. You can find more details and a link to the free report via the link below!

New report: Are carbon credits the next billion-dollar insurance market? β€” Kita
Oxbow Partners and Kita today launch a new landmark report entitled β€œGross Written Carbon: Are carbon credits the next billion-dollar insurance market?”  The report includes:  The scale of the opportunity setting out how the carbon credit insurance market could reach $1bn by

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Carbon Credit Insurance - CarbonPool's Seed Funding

CarbonPool, a carbon credit insurance firm, has raised $12 million in seed funding. The Zurich-based start-up provides in-kind insurance against risks like shortfalls, reversals, business interruptions, and natural disasters. The startup plans to acquire and retain high-quality carbon credits for future compensations, enhancing the reliability and integrity of carbon offset initiatives.

CarbonPool Raises $12M in Seed Funding From Climate-Focused Investors
The top rated website for carbon credits, carbon markets, carbon offsets, carbon pricing, carbon news, esg investing, netzero and more.

Precipitation Data

China's recently launched FY-3G satellite aims to provide detailed 3D data on rainfall and other precipitation types worldwide, enhancing weather forecasting and climate studies. The high-precision observation data will be made freely available.

New satellite capable of measuring Earth precipitation from space
Measuring the amount of precipitation that falls in a specific location is simple if that location has a device designed to accurately record and transmit precipitation data. In contrast, measuring the amount and type of precipitation that falls to Earth in every location is logistically quite difficult. Importantly, this information could provide a wealth of data for characterizing and predicting Earth’s water, energy and biogeochemical cycles.

Forests and Cloud Formation

A new research study casts fresh insights into forests' role in affecting the climate and water cycle, underscoring how current climate models do not fully account for forests' impact, especially in terms of their contribution to cloud formation.

Forests play an overlooked role in the climate system
A recent publication in Nature Communications unveils groundbreaking insights into the integral role forests play within the climate system

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