Read the Space4Climate Market Breakthrough Funding #2 report – key recommendations & insights on use of EO in Carbon and emerging nature markets
Exploring the role for a Decision Framework to support use of satellite Earth Observation
A ‘pretotype’ Decision Framework has been developed by a Space4Climate-funded collaboration to identify where satellite Earth Observation can and cannot play a crucial role in Carbon and emerging nature markets.
Nature finance markets rely on the quantification of changes in ecosystem attributes resulting from defined land-management practices. Analyses of these are used to produce certification, underpinned by standards and codes. But as a new generation of digital data capture and processing services is emerging – including the use of AI – there is uncertainty about which data are appropriate for which metrics, at what scale and for what accounting purpose. The pretotype Decision Framework focuses on the data requirements of the metric types used by six UK nature and carbon codes, clarifying where satellite EO can and cannot provide relevant data to support the derivation of these commonly used generic metrics.
Strengthening collaboration
The six-month Market Breakthrough Funding (MBF) Phase 2 project was led by Space4Climate members Environment Systems with partners Paul Jepson Consulting and Beyond Zero. The study examined data capture requirements of high integrity carbon and nature markets, through the lens of environmental accounting and then developed materials to help organisations understand the specific value of satellite EO data and associated analytics, the limits of its applicability, and the circumstances in which it can function as an integrative data source for monitoring and reporting on market-relevant metrics. The collaboration built on outcomes of MBF Phase 1 in which barriers to the take-up of satellite EO data for use in finance markets were identified. (Read the MBF Phase 1 reports.)
The Phase 2 assignment produced a roadmap to overcome the key barriers which the final report outlines, with recommendations, three use cases and the Decision Framework.
The process strengthened collaboration with technology providers and expanded engagement with the financial services sector, on behalf of the UK satellite EO community.
Integrating satellite EO
The varying data needs of different users within six UK carbon and nature credit codes were analysed; crediting standards and metric designs were studied to see where satellite EO data can be integrated into high-integrity crediting methods. This work was boosted by two members of the project team having previously compiled and applied design principles for crediting codes and metrics through leadership roles in the development of the Core Carbon Principles and the independently accredited CreditNature Ecosystem Condition Index, which underpins the Scottish Ecosystem Recovery Code.
The full process and outcomes are published in the report ‘Satellite data capture for evolving carbon and nature finance markets – Exploring the role for a Decision Framework to support use of satellite Earth Observation’.
ACCESS THE REPORT HERE