China’s National Meteorological Information Center (NMIC) and the Zhengzhou Commodity Exchange have jointly launched a new Temperature Index, aiming to help hedge against weather and climate risks in the agriculture and energy sectors, while enhancing risk management in financial markets.
Unveiled on Monday, the Temperature Index is built on a national-level platform and is designed to meet the needs of the real economy. By integrating high-resolution temperature observation data, historical electricity consumption records, and financial market demands, the index offers a comprehensive tool for businesses and investors to manage climate-related risks.
The index utilizes hourly temperature change data dating back to 1991, establishing differentiated benchmark temperatures for cooling and heating degree-time indices. This historical depth allows for more accurate modeling and forecasting.
Since September 2024, the Temperature Index has been undergoing trial operations across 53 benchmark locations in the middle and lower reaches of the Yangtze River. These regions are significant due to their economic activity and susceptibility to climate variability.
The initiative has established a standardized temperature index processing system based on the meteorological big data cloud platform “Tianqing”. Alongside, it employs a full-process monitoring system built on the comprehensive meteorological real-time monitoring system “Tianjing”. The China Meteorological Data Network is also incorporated, enhancing the index’s real-time data capabilities.
The Temperature Index publishes six sub-indices in real time, including daily average temperature index, cooling index, and heating index. These indices provide valuable insights for sectors heavily influenced by temperature fluctuations, such as agriculture, energy, and finance.
By offering precise and reliable temperature data, the Temperature Index is poised to become a vital tool for businesses and investors seeking to mitigate weather and climate risks, supporting more informed decision-making in China’s dynamic economic landscape.
Reference(s):
Temperature Index launched to hedge against weather and climate risks
cgtn.com
