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El Niño expected to help spur intense hurricane and typhoon seasons in the North Pacific

Abatify Summary

Nature & Climate Perspective

**An active hurricane and typhoon season in the North Pacific threatens to physically disrupt critical coastal ecosystems, undermining natural carbon sinks. **

  • Extreme wind and storm surges cause severe physical damage to coastal Blue Carbon habitats, potentially triggering immediate carbon emissions from disturbed sediments.
  • Increased precipitation and flooding disrupt land-use and forestry (LULUCF) projects, leading to acute soil erosion and loss of vegetative carbon stocks.
  • Repeated extreme weather events degrade localized biodiversity, reducing the long-term ecological resilience and natural adaptation capacity of conservation areas.

Market & Policy Outlook

**Rising frequency of extreme weather events directly challenges the permanence criteria under ICVCM Core Carbon Principles, threatening the valuation of regional nature-based credits. **

  • Project developers will face higher buffer pool contribution requirements to align with ICVCM CCP guidelines regarding permanence and physical risk mitigation.
  • Insurance premiums for nature-based solutions (NBS) are expected to rise, impacting project financial viability and overall market liquidity.
  • Corporate buyers aligning with SBTi frameworks or evaluating Article 6.2/6.4 ITMOs may shift capital toward low-risk geographical regions or technological removals to hedge against reversal liabilities.
NOAA is forecasting an active eastern Pacific hurricane season, and TSR is predicting an active northwest Pacific typhoon season.

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