The Bank of Spain has recently published a report highlighting the potential of satellite data in collecting climate-related information.
The report details the challenges of obtaining reliable environmental and climate data, which is crucial for establishing a green market. Satellite data, or earth observation (EO) data, offers a solution by providing real-time, precise climate-related information from satellites.
Satellite data can be instrumental in gathering insights on various issues including deforestation, energy consumption, emissions, agricultural risks, land use, GDP growth forecasting, urban mobility, and oil reserve estimates. However, there are challenges associated with utilizing this data, such as limitations in data formats and spatial resolution.
Central banks and financial organizations have choices between different satellites, such as Landsat and MODIS, which collect EO data applicable to sustainable development. The availability of specific satellites may vary by location, and accessing them can be challenging in cloud-prone regions. Additionally, the quality of data collected differs depending on the satellite.
Advancements are ongoing in the field of space and EO data, presenting significant potential for these technologies to contribute to the growth of green finance.
To learn more about climate-related data and natural capital, consider attending the Sustainable Finance Live event at Events@No6 in London, taking place on October 8.