Climate risk has become a direct production, revenue and pricing challenge for agriculture, agrifood and energy markets. Across Europe, extreme weather events already cause significant economic losses in agriculture, with limited insurance coverage leaving farmers, lenders and supply chains exposed to climate-driven volatility. At the same time, the rapid expansion of renewable energy generation means wind and solar operators face increasing revenue uncertainty linked to variability in wind resources, solar irradiance and hydrological conditions, contributing to PPA underperformance, financial volatility and curtailment risk.
This Translational Research Project will develop CPRS (Climate Parametric Risk Solutions), a data-driven climate risk platform and analytics engine that creates direct links between climate indicators and financial outcomes across two high-impact sectors: agriculture/agrifood and renewable energy. CPRS will integrate climate data, sector-specific models and financial risk analytics to generate parametric indices and risk-transfer structures tailored to operational and revenue exposures.
For agriculture and agrifood, CPRS will address climate risks including drought, precipitation variability, temperature extremes and heatwaves affecting production systems such as dairy, livestock and crops. For renewable energy, it will model exposure to fluctuations in wind, solar and hydrological resources. The resulting solutions can be embedded into financial products including agricultural loans, power purchase agreements (PPAs) and insurance programmes, providing improved revenue stability, reducing credit risk and enabling more resilient investment.
Commercialisation will target insurers, reinsurers, financial institutions and energy market participants through an Engine-as-a-Service (EaaS) licensing model, complemented by a Managing General Agent (MGA) pathway for direct market deployment. Beginning in Ireland and scaling across Europe, CPRS will address the rapidly expanding global parametric insurance market by providing a scalable technology platform for climate adaptation, financial resilience and sustainable economic growth.
