A view of the Huangpu River in Shanghai. [Photo/VCG]

Shanghai has launched an initiative to integrate meteorology and finance, with the goal of creating a collaborative system that uses weather data and financial tools to drive economic prosperity and strengthen disaster resilience by 2026.

The visionary project, as outlined in the "Shanghai Exploration of 'Meteorology and Finance' Synergistic Linkage: Serving High-Quality Economic and Social Development Work Plan (2024-2026)", aims to combine financial services with meteorological technologies to strengthen Shanghai's status as an international financial hub.

The initiative will concentrate on five pivotal areas: technology, green development, inclusive finance, elderly care, and digital finance. The plan will create service models at the intersection of meteorology and finance by utilizing Shanghai's designation as an Asia-Pacific Typhoon Collaborative Research Center and an Urban Multi-Hazard Early Warning Excellence Center by the World Meteorological Organization.

In addition, the initiative aims to improve disaster response and climate risk management capabilities for weather-sensitive industries, strengthening the foundation of the real economy.

By 2026, the plan envisions the establishment of a strong collaborative system that is driven by governmental guidance, market dynamics, and the active participation of multiple stakeholders. This includes improving policy landscapes, institutional frameworks, and standardization systems, as well as gathering essential resources such as products, technologies, and skilled personnel. The initiative ultimately aim is to improve service efficiency and ensure capabilities within the framework of "meteorology and finance".

Key tasks of the initiative have been divided into four categories: deepening meteorological services for the insurance industry, expanding meteorological services for the banking sector, progressing the financial utilization of weather derivatives, and fostering innovation in "meteorological data and finance" applications.

Concrete actions include the development of meteorological insurance services in the Yangtze River Delta region, investigating meteorological catastrophic insurance services for the Belt and Road Initiative, and incorporating meteorological data into the Shanghai Green Finance Service Platform. These efforts will contribute to the establishment of a national pilot demonstration project for meteorological data and finance, thus unlocking the latent potential of meteorological data as a valuable asset.

Source: Shanghai Observer