Data ReFined #27: Disclosing Climate-Related Risks, Biochar Carbon Credits Market, and Climate Data Visualization

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

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This issue features the U.S. Securities and Exchange Commission's (SEC) new rules for mandatory climate-related risk disclosures, Toucan's marketplace for biochar carbon removal credits, and Copernicus' new data visualization platform powered by the ERA5 dataset. We also cover Brazil's partnership to enhance climate finance and conservation efforts, a video explainer of sea ice levels in Antarctica, and much more.

Let's uncover the insights! 👇

Industry News

Marketplace for Biochar Carbon Removal Credits

Toucan has introduced the first global market for biochar carbon credits. Biochar is a type of charcoal and can sequester carbon for over a century. The blockchain-based platform CHAR by Toucan offers a transparent venue for trading validated biochar credits, aiding both developers and buyers in navigating this new market.

Toucan Launches World’s First Liquid Market for Biochar Carbon Credits

Toucan pioneers a groundbreaking initiative with CHAR, introducing the word’s first liquid market for biochar carbon credits.

Carbon CreditsJennifer L

Carbon Credits Explained by MIT

MIT's article on carbon credits outlines the essential role of robust, enforceable standards in carbon trading systems for effectively reducing global emissions. It emphasizes the debate over carbon credits' efficacy, highlighting the need for strict offset criteria and the value of nature-based solutions in augmenting emission reduction efforts.

Explained: Carbon credits

Can carbon trading systems reduce global emissions, or are they little more than greenwashing? Several MIT experts say the systems could be effective, at least in certain circumstances, but they must be thoroughly evaluated and regulated.

MIT News | Massachusetts Institute of TechnologyDavid L. Chandler | MIT News

Scaling Brazil's Climate Finance

Brazil has partnered with the Glasgow Financial Alliance for Net Zero (GFANZ), the world's largest climate finance alliance, to enhance clean energy and nature restoration funding. This collaboration aims to mobilize public and private financing. The partnership is part of Brazil's broader effort to take a leading role in global climate action, including restoring degraded or destroyed Amazon rainforests and developing new financing mechanisms for nature-based solutions.

Glasgow Financial Alliance for Net Zero Announces New Initiatives to Scale Climate Finance for Brazil’s Green Growth Plans | Glasgow Financial Alliance for Net Zero

GFANZ has developed a draft framework for financial institutions to catalyze action and specify concrete steps and holistic business strategy changes as part of the transition to a net-zero future.

Glasgow Financial Alliance for Net Zero

Mandatory Disclosure of Climate-Related Risks

The SEC has adopted new rules requiring most publicly traded companies to disclose climate-related risks in their registration statements and annual reports. The new rules, effective 60 days after publication in the Federal Register, aim for a consistent framework and have dropped the burdensome Scope 3 disclosures from the initial proposal.

SEC approves disclosure rule for climate-related risks. Here’s what’s next for companies and investors

The securities regulator voted to adopt new rules around disclosures of climate-related risks.

CNBCBob Pisani

Climate Risk Insurance for Carbon and Agriculture

Carbon Pulse recently interviewed Sid Jha, one of the co-founders of dClimate. The article explores the growing demand for climate risk insurance driven by the interdependence of global supply chains and delves into the roles of digital MRV platforms like CYCLOPS, addresses the issue of risk gaps, and examines the role and benefits of parametric insurance solutions.

INTERVIEW: Interconnected supply chains drive need for climate risk insurance « Carbon Pulse

Carbon PulseBryony Collins

Understanding Weather Derivatives

Arbol's latest article explains weather derivatives, highlighting that businesses can use these financial tools to hedge against climate risks such as temperature fluctuations or rainfall. These derivatives are customizable and can be traded, providing operational resilience against weather-related perils in agriculture, energy, tourism, and other weather-sensitive industries.

Understanding Weather Derivatives and Their Impact

Curious to understand the ins and outs of weather derivatives? Our concise guide will provide you with a clear-cut understanding of what weather derivatives are and how they can be used to hedge your business against the unfavorable weather.

Parametric Insurance for Climate-Related Disruptions

This recent article from InsTech discusses the growing use of parametric solutions as a financial safety net against non-damage business interruption losses caused by disruptions such as natural disasters and extreme weather events. Parametric insurance offers a quick payout based on predefined conditions, helping to mitigate the financial impact of disruptions that may not be covered by traditional insurance.

Parametric solutions for extreme disruptions | InsTech

Shock events, from earthquakes to epidemics, can cause prolonged interruptions to businesses large and small. Shock events, from earthquakes to epidemics, can cause prolonged interruptions to businesses large and small.

InsTech

Climate Data Visualization

Copernicus has introduced Climate Pulse, an interactive application that showcases near-real-time global average surface air and sea surface temperatures. Climate Pulse leverages the ERA5 reanalysis dataset, making it easier for users to understand climate changes, compare data across different years, and share climate insights.

Climate Pulse, C3S’s new tool to monitor the state of our climate at a glance

The record high global average temperatures observed in 2023 have shown the importance of closely monitoring our climate.

image/svg+xml European Commission

Climate Insights from Declassified Spy Satellite Imagery

A group of scientists has preprocessed over 1 million images from four historical U.S. spy satellite programs. This work removes some of the challenges of using this data for conservation planning and ecosystem restoration efforts, including identifying meaningful ecological baselines.

Spy satellite images offer insights into historical ecosystem changes

A large number of historical spy-satellite photographs from the Cold War Era were declassified decades ago. This valuable remote sensing data has been utilized by scientists across a wide range of disciplines from archaeology to civil engineering. However, its use in ecology and conservation remains limited.

Phys.orgScience X

Antarctic Sea Ice Levels, Explained

In just two years, Antarctica lost as much sea ice as the Arctic lost in three decades. This 12-minute video from PBS Terra explains some of the ecological dynamics behind this loss in ice coverage.

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