Data ReFined #35: Valuing Carbon Credits in the VCM, Scaling Climate-Related Parametric Insurance

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

This issue of our biweekly newsletter features the latest news from the voluntary carbon market (VCM) and discusses the expanding role of parametric insurance in managing climate risks. Before diving into the latest industry news, we would like to invite you to our upcoming webinar:

Webinar: What is the True Value of a Carbon Credit?

Join dClimate’s next live webinar and a panel of industry experts on July 18 at 10 AM EDT as we explore carbon credit pricing, factors influencing their value, challenges in fair pricing, and solutions like data integrity, accessibility, and validation to enhance price transparency and discovery.

Sign up below to mark your calendar! 👇

The Price is Right?

What is the true value of a carbon credit? Join dClimate’s next webinar panel discussion as we delve into the pricing of carbon credits, the factors influencing their valuation, the challenges in establishing a fair price, and the current solutions aimed at enhancing price transparency and discovery, such as data integrity, accessibility, and validation.

StreamYard

Industry News

How to Find High-Quality Carbon Credits

Climate Collective and RMI recently published a report on data quality and integrity in the voluntary carbon market. The guide offers a data-driven, analytical, and practical framework to help buyers find, compile, analyze, and test the data supporting each carbon credit.

Download the report:

Buyers Guide to Carbon Credit Data Quality — Climate Collective

Climate Collective0

Jurisdictional REDD+ Carbon Credits

A new pricing guide by the Environmental Defense Fund (EDF) indicates that jurisdictional REDD+ carbon credit prices are projected to rise to $15 by 2028. Currently valued between $6 and $12, analysis shows increasing demand for high-quality credits. The report enhances market transparency and understanding to assist tropical forest nations in securing better financing and contracts.

Navigating Jurisdictional REDD+: A Pricing Guide for Tropical Forest Nations

Analysis from EDF reveals how Jurisdictional REDD+ carbon credits are set to increase in price by 2028. The report is powered by data from MSCI Carbon Markets, and is intended to empower forest nations with insights to more equitably negotiate JREDD+ contracts with buyers.

Environmental Defense Fund

A New Trading Platform for REDD+ Projects

Several regenerative finance organizations, including Neutral, Toucan, and Renoster, have come together to build a marketplace for REDD+ credits. The trading platform aims to improve forest preservation financing by pricing credits based on project quality and ensuring real-time, transparent transactions.

REDD: A High-Integrity, Transparent Market for REDD+ Projects - Neutral

Neutral is launching a high-integrity, transparent market for REDD+ credits (preservation financing).

NeutralNeutral TeamJul 1, 2024·4min read

Scaling Climate-Related Parametric Insurance

Sid Jha, CEO and co-founder of Arbol, was interviewed on The Insurer TV to discuss the parametric insurer's plans after raising $60 million in Series B funding.

Watch the 12-minute interview:

Arbol CEO: $60mn Series B funding to target US homeowners insurance | The Insurer TV

Parametric insurer Arbol plans to target the US homeowners insurance market after completing a $60mn Series B funding round in April.

The Insurer TVNone

Wildfire Risks for Forest Carbon Projects

Renoster's new analysis highlights the vulnerability of forest carbon offset projects to climate-related disasters, particularly wildfires. According to the study, nearly 50% of the projects have a medium or high risk of being impacted by wildfires, emphasizing the need for improved wildfire risk management and adaptation strategies to protect projects.

From Carbon Credits to Fire Risks: The Vulnerability of Forest Offset Projects

Akshata Karnik This is some text inside of a div block.

Parametric Insurance for Farmers

Allianz Colombia has launched a new parametric insurance product aimed at protecting Colombian farmers from the adverse effects of climate risks. The product is notable for being the first of its kind for Allianz in Latin America. It allows farmers to secure loans and insurance via an app or through local cooperatives.

Allianz develops parametric solution to support Colombian farmers battling climate change - Reinsurance News

Allianz Colombia has developed a new product, based on a parametric insurance policy, that would help protect the country’s farmers livelihood as well as

ReinsuranceNe.wsKassandra Jimenez-Sanchez

Climate Risk Assessment Methods

A pan-European research project found significant gaps in climate risk assessment methods, potentially underestimating financial losses by up to 70%. The study urges using detailed, asset-specific data and considering extreme events to improve accuracy. Simplified proxies often fail to capture true risks, leaving businesses unprepared for rare but severe impacts.

Crucial Gaps in Climate Risk Assessment Methods

Logo of the University of Zurich, to homepage

GOES-19 in Geostationary Orbit

NOAA has announced that their latest GOES satellite has successfully reached geostationary orbit. Launched on April 7, 2024, GOES-19 is equipped with advanced instruments for weather forecasting, climate monitoring, and tracking severe weather events. It will enhance NOAA's ability to observe weather patterns and improve prediction capabilities.

NOAA’s GOES-U Reaches Geostationary Orbit, Now Designated GOES-19

On July 7, 2024, NOAA’s GOES-U satellite reached geostationary orbit above Earth’s equator and was renamed GOES-19.

National Environmental Satellite, Data, and Information Service

One Year of 1.5°C Above Pre-Industrial Levels

June 2024 marked the 12th consecutive month with global temperatures 1.5°C above pre-industrial levels. While prolonged periods of elevated temperatures are uncommon, a similar streak of monthly global temperature records occurred in 2015–2016.

June 2024 marks 12th month of global temperatures at 1.5°C above pre-industrial levels

image/svg+xml European Commission

New AI Model for Weather Forecasts

Argonne National Laboratory has developed an advanced AI model to improve weather prediction accuracy and timeliness. This new model addresses limitations in current forecasting methods, offering better precision for extreme weather events even with low-resolution data.

New AI model can provide high-accuracy forecasts from even low-resolution data

Being able to create accurate weather models for weather forecasting is essential for every aspect of the American economy, from aviation to shipping. To date, weather models have been primarily based on equations related to thermodynamics and fluid dynamics in the atmosphere. These models are tremendously computationally expensive and are typically run on large supercomputers.

Phys.orgJared Sagoff

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