China's National Meteorological Information Center (NMIC) and the Zhengzhou Commodity Exchange have officially launched a new Temperature Index on Monday. This innovative index is designed to help hedge against weather and climate risks within the agriculture and energy sectors, while also enhancing risk management in financial markets.
The Temperature Index is built on a national-level platform, tailored to meet the needs of the real economy. It seamlessly integrates high-resolution temperature observation data, historical electricity consumption records, and the demands of financial markets. By utilizing hourly temperature change data that traces back to 1991, the index sets differentiated benchmark temperatures for cooling and heating degree-time indices.
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. This initiative has established a standardized temperature index processing system based on the meteorological big data cloud platform \"Tianqing.\" Additionally, it incorporates a full-process monitoring system from the comprehensive meteorological business real-time monitoring system \"Tianjing.\" The China Meteorological Data Network also plays a pivotal role in the index's functionality.
The Temperature Index publishes six sub-indices in real-time, including the daily average temperature index, cooling index, and heating index. These sub-indices provide valuable insights and data-driven support for stakeholders in the agriculture and energy sectors, enabling better decision-making and risk management in the face of climate variability.
Reference(s):
Temperature Index launched to hedge against weather and climate risks
cgtn.com
