On November 18th, the Zhengzhou Commodity Exchange (ZCE) and the National Meteorological Information Center jointly launched the "ZCETemperature Index",whichprovides a comprehensive "yardstick" for assessing weather risks in industriesrelated tothe real economy.
According to the ZCE, "The Temperature Index consists of six sub-indices: the Minimum Temperature Index, the Maximum Temperature Index, the Daily Average Temperature Index, the Pentad Average Temperature Index, the Cooling Degree-Hour Index, and the Heating Degree-Hour Index." Each of these sub-indices serves a specific purpose and is designed to cater to the needs of key sectors such as energy and agriculture.The Temperature Index will enable industries includingenergy and electricity to better measure temperature-related risks, while also providing more precise and powerful support for the pricing and innovation of agricultural insurance.
The futures market has played a keyrole in enhancing the mechanisms for transferring and dispersing weather risks, withmore than 20 years of practical experience in international markets. As weather-sensitive industries such as agriculture, energy, tourism, and retail continue to grow in China, the demand for effective weather risk management in the operation of the national economy is increasing.
According to the14th Five-Year Plan for National Meteorological Development,it is clearly stated that the development of weather index insurance, weather derivatives, and new climate investment and financing products should be promoted. In recent years, the Zhengzhou Commodity Exchange (ZCE) has been advancing along the path of "research projects–index compilation–system development".In September of this year, the ZCE Temperature Index passed its evaluation and was successfully piloted. Itsofficial release marks an important step forward in the collaboration between "meteorology" and "finance" to serve the real economy.
It is reported that the ZCE Temperature Index is releaseddaily on its official website, where users can log in to view detailed information on the index levels, historical trends, compilation plans, news updates, and more. Users can also download the index data as needed. In the future, the ZCE will focus on serving areas such as food security, energy security, green transformation, and the development of new quality productive forces, continuously exploring weather derivatives that align with China's national conditions.
