STATEMENT: The increase in forest fires is a permanent risk for global carbon markets


STATEMENT: The increase in forest fires is a permanent risk for global carbon markets

NEW DELHI, Nov. 17, 2022 /PRNewswire/ -- Climate Connect Digital (CCD) has published a white paper quantifying the ongoing risk posed by increasingly intense bushfires across the Indian subcontinent. This will potentially have a significant impact on nature-based carbon projects, and on voluntary carbon markets.

For more information, download the full white paper here

Sharm-El Sheikh, Egypt (November 16, 2022) The United Nations Conference of the Parties (COP 27) being held this year in Sharm El Sheikh, Egypt, is in full swing, with countries meeting to decide on global action to combat climate change, focusing on compliance with Article 6.

The CCD delegation visiting the COP has published a white paper detailing how forest carbon stocks are being affected by rising temperatures and intensifying forest fires in the Indian subcontinental region . This is worrying for the future health of both natural ecosystems and carbon markets. Current climate trends and future projections are alarming, since the average temperature trend in the last 40 years has been for an increase of 0.5ºC, which has caused a notable increase in climate volatility.

Projections for the year 2100 in central India call for a significant increase in rainfall of 100 mm and an increase in average temperature of 1.2°C. Therefore, it is expected that the frequency, duration and intensity of forest fires will also worsen.

This poses great risks for nature-based solutions (NBS) projects and carbon project developers. In turn, this will have a direct impact on global carbon registries, which will have to manage the necessary buffers to mitigate the associated permanence risk.

Currently, registries reserve around 20% of a project's carbon credits in a reserve at the time of issuance, to mitigate permanence risk. However, this level may be inappropriate in the future, and have a dominating effect on global markets.

The paper, titled Climate Change: Impact on Precipitation, Temperature and Forest Fires, An Indian Perspective - examines past trends in central India from 1951 to 2020, and to 2100. The study underscores the need for similar climate analyses. in other parts of the world.

Based on these results, Climate Connect Digital has begun to develop tools that enable near real-time monitoring of wildfires in areas of interest and generate actionable alerts.

About Climate Connect Digital:

Climate Connect Digital (CCD) is a climate technology company that has been providing innovative technology and advisory solutions in the climate and clean energy arenas for over 12 years.

A pioneer in the application of AI to energy and climate technology, its solutions are deployed in various networks and manage 12 GW of solar and wind power generation in more than 100 power plants.

With software solutions and expert advisors, CCD enables companies to create and implement strategies to achieve long-term emissions reduction targets. Its software tools and expert advisory services also help carbon project developers get the most out of their carbon assets.

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