Prospects for and value of long-time series data using global reanalysis data sets in the development of global climate derivatives

Abstract

This presentation addresses weather risk management, especially for farmers. Potential benefits should accrue if the co-joining of weather/climate risk management and seasonal forecasting is encouraged across many weather-sensitive industries (e.g. agriculture, mining, energy and tourism), if longer-term perspectives of risk across many seasons are adopted and if support is given to suitable trading mechanisms and industry extension programmes.. Global indices(eg SOI) hold promise for risk management at varying spatial and temporal scales.There is value in applying CAI (eg 'climate derivatives') as an adjunct to climate forecasting systems in order to better manage risk. Therefore, need to access suitable data sources of other key indices (NAO, SAM, Nino 3.4) in order to price these systems.