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1、Amplifying the Global Value of Earth ObservationI N S I G H T R E P O R TM A Y 2 0 2 4In collaboration with DeloitteImages:Getty Images,Shutterstock,Adobe StockDisclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,in
2、terpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.The document
3、 was created in collaboration with Deloitte Consulting LLP,an entity within the Deloitte organization.The findings,interpretations and conclusions expressed herein do not necessarily represent the views of any Deloitte entity or its employees and no Deloitte entity or employee shall be liable for an
4、y loss in connection with this document.Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited(DTTL),its global network of member firms,and their related entities(collectively,the“Deloitte organization”).DTTL(also referred to as“Deloitte Global”)and each of its member firms and related e
5、ntities are legally separate and independent entities,which cannot obligate or bind each other in respect of third parties.DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions,and not those of each other.DTTL does not provide services to clients.Please see
6、to learn more.2024 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.ContentsForeword 3Executive summary 4Introduction 51 The global
7、 value of EO data 121.1 Economic opportunity in 2030 141.2 The climate and nature opportunity 162 Industries with the most value to gain 202.1 Agriculture 222.2 Electricity and utilities 232.3 Government,public and emergency services 242.4 Insurance and financial services 252.5 Mining,oil and gas 26
8、2.6 Supply chain and transport 273 Cross-industry uses of EO to amplify climate and nature impact 283.1 Environmental impact monitoring and disclosure 303.2 Vulnerability analysis 313.3 Supply chain monitoring 324 Strategies to activate EOs potential 33Conclusion 37Appendices 38A1 Methodology and ap
9、proach 38A2 Taxonomy of EO uses and applications 44A3 EO data types and their uses 48Contributors 51Endnotes 53Amplifying the Global Value of Earth Observation2ForewordOur collective ability to observe nature and the built environment is greater now than ever,in large part due to exponential growth
10、in the capabilities of Earth-observing satellites.In recent years,several commercial and non-profit organizations have joined the ranks of national governments to observe Earth from orbit as a result of more flexible regulations and lower-cost access to space.Through detailed,daily measurements,mode
11、rn satellites and sensors can do much more than produce impressive images of Earth.They allow us to monitor Earths vital signs,elucidate relationships between people and the planet and provide valuable insights for leaders across sectors.Renewables production,disaster response and sustainable sourci
12、ng are just a few of the areas that Earth insights can enhance.In concert with complementary in-situ data sources,analytics tools and a growing marketplace of user-focused services,Earth data is quickly approaching mainstream accessibility.This study estimates that by 2030,the economic value of Eart
13、h insights could exceed$700 billion(nominal US dollars)and help reduce greenhouse gas emissions by 2 gigatonnes annually.This is an inspiring time to explore the transformative opportunity that Earth observation(EO)presents.As a vital component of the fourth industrial revolution,EO converges with a
14、rtificial intelligence(AI),digital twins and climate technology to offer a powerful toolset for economic prosperity and sustainable growth.Advances in EO technology help illuminate our pathways to net zero and can inform action on nature and biodiversity protection.This report by the World Economic
15、Forum,in collaboration with Deloitte,showcases the dual economic and environmental value proposition of Earth observation data.It integrates perspectives from the EO community,a group of 40 industry,technology and climate leaders committed to driving sustainable value through EO applications.Togethe
16、r,we highlight opportunities for both proven and promising EO applications,quantify their value and offer strategies to amplify their global impact.We hope this publication provides insights for those in the EO ecosystem and the potential beneficiaries of Earth data across industries to build toward
17、s a more prosperous,sustainable and resilient future for the planet.Jeremy Jurgens Managing Director,World Economic ForumJen Steinmann Global Sustainability Practice leader,DeloitteAmplifying the Global Value of Earth ObservationMay 2024Amplifying the Global Value of Earth Observation3Executive summ
18、aryToday,Earth observation(EO)is not only a focal point of the space industry and scientific community but also an engine for economic development.Data collected from space and other sensors can benefit a wide range of business interests,both by strengthening financial performance and by supporting
19、compliance with environmental regulations.EO can play a helpful role in supporting organizations to advance climate and nature goals through verifying carbon reduction,understanding organizations impacts and dependencies on nature,and identifying strategies that contribute to a nature-positive and n
20、et-zero economy.With promising market trends and hundreds of possible applications,the global potential of EO is immense,but the extent of this potential has not yet been realized.As found in this study,the potential value-added from Earth data is estimated at$266 billion(nominal US dollars are used
21、 throughout this report)in 2023,a figure that is poised to grow to more than$700 billion in 2030 with a cumulative$3.8 trillion contribution to global gross domestic product(GDP)between 2023-2030.Most of that value comes from downstream applications in industry;approximately 94%of the total value po
22、ssible by 2030 derives from applications in agriculture,electricity and utilities,government,public and emergency services,insurance and financial services,mining,oil and gas,and supply chain and transport.At the same time,EO can inform interventions that stand to reduce greenhouse gas(GHG)emissions
23、 by more than 2 gigatonnes annually measured in carbon dioxide equivalent(CO2e).This figure is likely an underestimate,as it considers five leading EO applications with a demonstrated direct impact on GHG emissions,while numerous others exist with indirect effects.Yet,it still equates to approximate
24、ly 3.6%of annual global emissions today1 Importantly,applications for business goals and environmental goals are not mutually exclusive.In fact,they often go hand-in-hand.Activating the economic co-benefits of dual value applications for environmental monitoring,vulnerability analysis and supply cha
25、in monitoring is a promising mechanism to amplify the climate and nature impact of EO.While EO is an extraordinary tool for creating both economic value and positive environmental impact,maximizing its value depends on a dramatic increase in end-user adoption.Achieving that calls for resolute strate
26、gies and investments to increase awareness of what is possible with EO,encourage innovation,advance core and enabling technologies,ensure equity in access to EO insights and bridge the gap between EO data and end-user solutions worldwide.Earth observation has the potential to drive$3.8 trillion in e
27、conomic benefit from 2023-2030 while positively impacting climate and nature.Amplifying the Global Value of Earth Observation4IntroductionEarth observation(EO)has contributed to the global economy for decades.Initially underpinned by strong public sector contributions(particularly driven by defence
28、and security interests),there is now an established and growing commercial EO industry.In just two years,from 2021 to 2023,the EO industry grew by more than 21%.2 Driven by technology and business model innovation,the stage is set for continued growth not only in the EO industry but also in EOs mult
29、itude of downstream applications.Novel modelling undertaken in this study has illuminated the scale of opportunity that EO presents.By 2030,the potential economic value of EO could exceed$700 billion(nominal US dollars)globally,with applications across nearly all industries.It can also support initi
30、atives that generate environmental benefits.Specifically,EO is a critical tool to inform policies,decisions and interventions that could eliminate up to 2 gigatonnes(Gt)of greenhouse gas(GHG)emissions every year while supporting a host of nature-positive strategies.Increasing uptake across all regio
31、ns and industries is key to unlocking EOs economic and environmental benefits.The scale of EOs dual value is compelling,but integrating EO into the global economy will depend on the innovation,investment and the collective actions of organizations throughout the EO value chain.Understanding Earths s
32、ystems and human dependencies and impacts on them is integral to sustainable economic development worldwide.Why 2030?BOX 1The period from 2024 to 2030 is a vital window of opportunity to advance EO for climate and nature purposes.Major international commitments linked to the UN Sustainable Developme
33、nt Goals(SDGs),Global Biodiversity Framework,Paris Agreement,Rio Conventions,Dubai Consensus and others culminate in 2030 targets.Over the same period,environmental disclosure requirements and emissions regulations will take effect,thousands of new EO satellites are forecasted to launch and enabling
34、 technologies such as artificial intelligence(AI)may catalyse adoption.As a result,global adoption of EO could increase by 30%or more by 2030,according to a survey of EO industry leaders.Amplifying the Global Value of Earth Observation5 The global EO opportunity FIGURE 1A traditional view of the EO
35、value chain focuses on the data,platforms and analytics providers that make up the EO industryAn expanded view includes downstream applications where the vast majority of EO datas value is realized$3.8trillionCumulative potential value from 2023-2030$703billionPotential yearly value-added by 20302 G
36、tAnnual GHG emissions that can be avoided by 2030 with actions based on EO insightsEO dataEO data comes from a variety of sensors and sources,both remotely sensed and in-situ.UpstreamFunctional uses of EONine functional uses,enabled by data platforms and analytics,help multiply EO datas value.Midstr
37、eamIndustry applicationsDownstreamEO data can be used in nearly all industries,with a wide variety of value-adding applications.Consumer experienceEarlywarningEnvironmental impact monitoringPost-event analysisPrecision agri/aquacultureRouteoptimizationSupply chainmonitoringSiteselectionVulnerability
38、analysisAgricultureConstructionElectricity and utilitiesGovernment,public and emergency servicesHealthInformation,media and technologyDual value propositionEconomicEnvironmentalEOs combined economic and environmental benefits present a compelling case for adoption.Revenue increaseClimate change miti
39、gationCost avoidanceNature-positive impactsInsurance and financial services ManufacturingMining,oil and gasProfessional servicesTourism and service industrySupply chain and transport6Amplifying the Global Value of Earth Observation What is EO?In July of 1972,the US Department of the Interior launche
40、d the first of the satellites that would become the Landsat program.Providing never-before-seen images of the Earth to scientists around the world,Landsat 1 fundamentally changed geographic,cartographic and other Earth science disciplines while also paving the way for satellite-based EO data use in
41、a wide range of other fields.This study primarily focuses on remote sensing since it is a driving force for scaling EO around the world.In-situ data is considered when it is used to enrich,calibrate or validate remote sensing data or when it cannot be differentiated from it.With daily global coverag
42、e,satellites are a key part of that advantage.Nearly everything on the surface of the Earth,and many phenomena above the surface,can be measured with remotely-sensed EO(see Figure 2).DefinitionsBOX 2EO refers to collecting information about activities and characteristics on Earth,both natural and ar
43、tificial,including physical,chemical,biological and anthropogenic(human)systems.EO includes both remote sensing technologies and“in-situ”data sources.Remote sensing uses a variety of sensors to measure reflected or emitted energy from distant environments.In-situ data is collected adjacent to the me
44、asuring instrument,like temperature readings by a thermometer.Additional information on the types and attributes of EO data can be found in Appendix 3.Examples of what remote sensing can measureFIGURE 2Remotely-sensed EO can Capture images in the visible spectrum Measure the geometry of natural and
45、human made objects(day or night)Delineate shorelines and measure soil moisture contentAssess atmospheric conditionsMeasure temperature and detect heat sources in the infrared spectrumClassify land coverage and use including change over timeIdentify and differentiate species of vegetationIdentify the
46、 chemicals present in land,water and atmosphere(including GHGs)Classify human made infrastructure and monitor changes over timeMeasure radio,microwave and ultraviolet radiationAmplifying the Global Value of Earth Observation7In many cases,insights from this data are sufficient to inform data-driven
47、action on their own.Yet,fusing datasets and comparing measurements over time unlocks far more.For example,the ability to analyse a multitude of environmental variables over time makes it possible to forecast weather and measure climate change,while adding socioeconomic data,such as population statis
48、tics,can help assess climate impacts on human populations.Additionally,the internet of things(IoT),mobile phones and other global navigation satellite system(GNSS)enabled devices are rich sources to enhance EO.These sources not only help to calibrate and validate remotely sensed data but also can be
49、 fused to improve precision or generate new insights.For example,Waze pioneered the use of crowdsourced GNSS data from consumer devices to improve maps and enable dynamic routing.Components of the EO value chainFIGURE 3Data acquisitionData processing and analyticsData use1 Satellite1 Crewed aircraft
50、1 Ocean data buoy1 High-altitude balloon1 Satellite ground station1 Mobile phones,other consumer devices and IoT devices1 Ground-based radar1 Fixed wing and rotary drones1 Automatic sensor station (e.g.weather station)123451234578696789Amplifying the Global Value of Earth Observation8The EO value ch
51、ainA basic framework for the EO value chain mirrors the process for generating insights from data,whereby raw data is first collected,then processed to produce useful information,and finally exploited for a variety of end-user applications(see Figure 3).Across the value chain,a diverse mix of commer
52、cial,government,academic and civil society organizations play different roles.Business models vary,with some focusing on narrow industry verticals or niche applications and others providing broad platforms that support a wide range of applications.Integration up and down the value chain is not uncom
53、mon,with some data providers operating across upstream and midstream segments and some end users integrating midstream capabilities.The EO value chain begins with data acquisition from a variety of sensors and sources.Remotely-sensed data is collected from satellites,piloted aircraft,high-altitude b
54、alloons,drones and other platforms.In-situ data is gathered from GPS-enabled devices,IoT sensors and other human-collected or automated measurements in the field.The midstream segment,data processing and analytics,aims to make vast EO datasets more discoverable,accessible and ultimately actionable.R
55、aw EO data needs to be calibrated,refined,contextualized,curated and fused with other data sources relevant to specific applications.3 The downstream segment of the EO value chain is data use.Unlike depictions of the EO value chain that focus on the EO industry alone,this segmentation captures the r
56、ole of end users in realizing the full value of EO data and the importance of stimulating downstream use to realize EOs full potential.Current categories of EO data use in downstream applicationsFIGURE 4Post-event analysis:Analysing environmental changes to better direct emergency response and measu
57、re the extent of damages.Precision agri/aquaculture:Enhancing regenerative practices,reducing input costs and monitoring in-season performance and yield.Route optimization:Optimizing transport routes in concert with GNSS data by detecting potential environmental disruptions and offering alternatives
58、 based on environmental impact.Site selection:Identifying operational sites for large-scale infrastructure with the best yield,efficiency and/or relative environmental impact.Supply chain monitoring:Detecting changes to physical goods supply chains and their impacts on international commerce and eco
59、logical indicators.Vulnerability analysis:Characterizing and assessing the risks posed by climate and nature changes and other hazards that may materially impact people,infrastructure and operations.Consumer experience:Providing individual users value through information such as air quality or weath
60、er forecasts.Early warning:Detecting disasters like floods and wildfires with more speed and accuracy to bolster planning,response and recovery.Environmental impact monitoring:Providing a trusted,third-party source to measure environmental impacts and help verify certain environmental commitments an
61、d mandates.Demonstrated applicationsEmerging or plausible applicationsLimited or no applicabilityAmplifying the Global Value of Earth Observation9How EO data is usedWith various types of measurements that can be adapted to specific regions,industries and organizational objectives,the depth and diver
62、sity of use cases can be inspiring but may also obfuscate the simplicity of the fundamental value proposition for EO:better data can inform decision-making,optimize solutions and enable innovation.High level,industry-agnostic categories are helpful to grasp that fundamental value proposition.Each ca
63、tegory shown in Figure 4 is framed in terms of the function it serves and comprises a range of unique applications and diverse data sources,across industries.For example,“route optimization”includes particulate matter monitoring,hazardous weather identification,marine surveying and other application
64、s.These categories are not meant to be exhaustive.Instead,they represent some of the primary ways in which organizations can use EO to create value.Example applications within these categories are detailed in Appendix 2.Each of the functional use categories has unique applications across several ind
65、ustries.Figure 4 illustrates the relevance and applicability of the nine use categories across major industries.Note:Common uses of EO in defence,intelligence and other national security applications are not included in this study.IndustriesFunctional use categoriesConsumer experienceEarly warningEn
66、vironmental impact monitoringPost-event analysisPrecision agri/aquacultureRoute optimizationSite selectionSupply chain monitoringVulnerability analysisAgricultureConstructionElectricity and utilitiesGovernment,public and emergency servicesHealthInformation,media and technologyInsurance and financial
67、 services ManufacturingMining,oil and gasProfessional servicesTourism and service industrySupply chain and transportSummary of supply-and demand-side dynamicsTABLE 1Supply-side dynamics:A revolution in EO and supporting technologies is unlocking new possibilities for value-added servicesData acquisi
68、tion(upstream)Commercial competitionA growing commercial market for satellite-based EO,enabled by lower costs to build and deploy small satellites,is complementing publicly-available data by offering more detail and data types.Consolidation and integrationThe commercial EO industry has seen consolid
69、ation through acquisitions,including vertical integration down the value chain.Advancements in EO data qualityNew satellites and sensors are improving the range and quality of information available.Data processing and analytics(midstream)Advancements in computingAdvanced computing,cloud and AI are c
70、omplementary capabilities that increase efficiency,help extract more information from satellite images and reduce the time from data to insight.Value-added services Additional midstream services are needed to make EO accessible to a wider range of users.Demand-side dynamics:EO can help meet business
71、 and climate imperatives,but its technical complexity and a lack of awareness are holding back demandData use(downstream)Consumer awarenessAwareness is increasing in industries with more established use cases but remains a substantial barrier.Government-driven marketSpending on commercial EO data is
72、 currently dominated by defence and other government agencies,leading suppliers to prioritize them over other industry users.Solutions,not pixelsBuying patterns are shifting;new customers are seeking actionable insights rather than raw data.The environmental imperativeThe growing focus on climate mo
73、nitoring and disclosures strengthens the relevance of Earth data across sectors.Amplifying the Global Value of Earth Observation10EO market trends and dynamics Looking back at market studies from the past two decades,its common to find optimistic outlooks from EO industry insiders.EOs ability to ans
74、wer an increasing number of vital questions lends itself to a perception that the industry is nearing an inflexion point for growth.Consultations held as part of this study provide an up-to-date perspective on the dynamics influencing the industrys future.Supply-and demand-side dynamics are summariz
75、ed in Table 1.The supply-side outlook is largely positive:new EO satellites,advanced sensors and complementary computing capabilities are continuing to push the envelope of what is possible with EO data.However,servicing the potential demand for EO remains a challenge.Key barriers include limited aw
76、areness of EO applications,a shortage of specialized talent,fragmented standards,and difficulty navigating the complex EO data and services marketplace.There are likely many reasons these barriers have persisted,including that the commercial EO industry was influenced heavily by government particula
77、rly defence.The business models to enable commercial adoption may look quite different.4Optimism among EO industry professionals persists regarding the role AI can play in driving market growth.5 Not only are new AI models expected to supercharge the ability to analyse immense catalogues of EO data,
78、but it is also expected to power new ways of interacting with it.If successful,AI-enabled services stand to make EO accessible to non-experts and dramatically lower the demand-side barriers to entry.If successful,AI-enabled services stand to make EO accessible to non-experts and dramatically lower t
79、he demand-side barriers to entry.Direct economic and climate benefits modelledFIGURE 5Economic benefitsClimate benefitsEconomy-wide spilloversDownstream use valueEOindustry valueModelling explicitly captures direct benefits of EOSustainable economic growthIndirect GHG reductionDirect GHG reductionDi
80、rect economic and environmental benefits of EO applicationsTABLE 2CategoryTypeDescriptionUnit of measureEconomicProductivity(revenue)increase Innovate to create products and services that reach new customers or build new markets.Increase the output or efficiency of assets and processes.Increase popu
81、lation health or decrease mortality,thereby supporting per capita economic growth.MonetaryCost avoidance Monitor natural hazards to better manage risk posed to infrastructure and operations,mitigating losses.Comply with regulatory requirements and avoid associated penalties.MonetaryEnvironmentalClim
82、ate Monitor climate variables and emissions,which inform actions to mitigate climate change such as limiting GHG emissions and supporting carbon capture.GHG emissions,expressed in tonnes of carbon dioxide equivalent(CO2e)Nature Monitor ecosystems to inform actions that protect and strengthen natural
83、 habitats,biodiversity and overall ecological health.Various ecological metrics(not quantified in this study)Note:Different GHGs,including carbon dioxide(CO2),methane(CH4),nitrous oxide(N2O)and others,have varying impacts on global warming.CO2 equivalent is a measure for various GHGs that is normali
84、zed based on their global warming potential(GWP).It is a conversion of the amount of other GHGs to the equivalent amount of CO2 with the same GWP.Economic value definitionBOX 3As used in this study,economic value refers to gross value added.In the context of EO,this is equivalent to the contribution
85、 of technology and EO-derived information to gross domestic product(GDP)through increased productivity and avoided costs,such as losses from disasters.Importantly,economic value is not the same as market value,which describes industry revenues or the discounted value of future earnings.Amplifying th
86、e Global Value of Earth Observation11How the economic and environmental benefits of EO are classifiedDownstream applications can offer unique benefits for businesses,governments and civil society.Benefits can be direct,such as the economic gains from using EO to optimize fishery harvests,or indirect
87、,such as the overall health and welfare of the communities that depend on them.This study is focused on the direct benefits shown in Table 2 and quantifies the economic and climate benefits highlighted in Figure 5.While social benefits like public health,security and equity are an integral part of E
88、Os value proposition,they are not a focus of this analysis.The global value of EO data1EO could add$703 billion to the global economy while eliminating 2 gigatonnes of GHG emissions in 2030.Amplifying the Global Value of Earth Observation12EO is a concentrated industry that enables an outsized impac
89、t downstream.*Value-added services include those provided by organizations considered part of the EO industry.Total size of industry(monetary or CO2e emissions)Global marginal benefit parameterGlobal size of addressable economic value or CO2e emissionsGlobal benefit(monetary or CO2e)X=XShare of indu
90、stry addressable with EO(%)Additional benefit from EO(%)Maximum potential annual value of EOEconomic valuationGHG valuationFor years,the EO industry has struggled to unlock barriers related to technical skills,awareness,policy and more that would fundamentally shift the rate of adoption of EO.The ch
91、allenge of transforming information to insights and insights into action are not unique to EO;they persistently slow technology adoption,especially in“big data”applications.The potential is evident,and the technical feasibility has been confirmed,but there are not enough people using this technology
92、.The question then arises:what would happen if they did?The global value of EO data is estimated to be worth$266 billion as of 2023.By 2030,that value could exceed$700 billion,with a cumulative$3.8 trillion contribution to global GDP between 2023-2030.While driving significant economic impact,EO can
93、 also inform actions with the potential to eliminate 2 Gt of GHG emissions every year while contributing to nature-positive strategies.$3.8trillioncontribution to global GDP between 2023-2030.Downstream use is the value multiplierBOX 4EO data acquisitionValue-added services*and end-user applications
94、Value added fromanalysis and use150timesvalueThese figures are the result of a bottom-up examination of the direct economic and climate benefits that can be ascribed to EO through dozens of unique applications and an extrapolation of those benefits across all regions and industries(see Figure 6).The
95、 maximum potential value of each EO application is then scaled down based on modelled adoption rates.Refer to Appendix 1 for more details on methodology.How the value of EO applications is estimatedFIGURE 6Amplifying the Global Value of Earth Observation13Amplifying the Global Value of Earth Observa
96、tion14$200$100$300$400$500$600$700$800Economic value added ($,billions)20232030Growth channelsHow is value realized?$266$119$78$240$703Growth driven by existing EO usersCostavoidanceProductivity improvementGrowth driven by net new adoptersFor every 1%increase in downstream user adoption,an additiona
97、l$9.8 billion in value can be added.Over the modelled period(2023-2030),adoption across the global economy could rise from approximately 39%today to 72%by 2030.6$119 billion driven by existing users of the technology,demonstrating that value will continue to be extracted long after industries first
98、adopt the technology.$78 billion saved through net-new adoption of EO to manage risk and mitigate losses through applications such as monitoring hazards to critical infrastructure and improving disaster response.$240 billion gained in productivity through net-new adoption of EO.Private industry is e
99、xpected to capture most of this value,led by continued global adoption in agriculture,electricity and utilities and insurance and financial services.The combined economic value of$703 billion is comparable to the GDP of medium-sized economies like those of Belgium($628 billion)and Taiwan,China($752
100、billion)in 2023.7 1.1 Economic opportunity in 2030Growth across channels of benefit for EOFIGURE 7Amplifying the Global Value of Earth Observation15North America$962030$532023Europe2030$442023$105Central and South America$552030$172023Africa2030$192023$63Middle East and Central Asia$692030$222023Asi
101、a-Pacific(shown at 50%scale)2030$1112023$315139%224%81%232%214%184%Regional growth story visualizationFIGURE 8By showcasing the immense potential of Earth data in emerging economies,these results underscore the importance of addressing the underlying challenges to scaling.Globally,a lack of resource
102、s to build or buy the systems needed to turn EO data into insights and capacity constraints in integrating those insights into operations hinder organizations in using EO data.These challenges are often more pronounced in developing economies.Deriving actionable insights and integrating them into da
103、ily operations entails a complex and varied set of“last mile”challenges.Governments and non-profit organizations are actively working to help build capacity and implement locally relevant solutions,but publicly available EO data and open-source solutions are ultimately only a piece of the puzzle.The
104、 Asia Pacific region is poised to capture the largest share of EOs value in this period,reaching a potential value of$315 billion.Regional resultsThe potential for EO to create value is strongly linked to technology readiness documented at the industry and regional levels.The relative size and futur
105、e growth profile of those industries in each region also tell a key part of the story.While North America and Europe are currently global leaders in EO adoption,future growth in these regions is projected to remain steady,while regions with comparatively lower adoption are projected to experience ap
106、proximately threefold expansion from 2023 to 2030.The Asia Pacific region is poised to capture the largest share of EOs value in this period,reaching a potential value of$315 billion,while Africa and South America are positioned to realize the largest percentage growth.Additional information on adop
107、tion modelling can be found in Appendix 1.The scale of EOs dual value applications BOX 5In 2030,approximately$550 billion in economic value associated with downstream uses of EO is tied to applications with corresponding benefits for climate and nature.This represents nearly 80%of the total global v
108、alue-added by the technology in that time.Economic value generation totalling$44 trillion,which accounts for over half of the worlds total GDP,is moderately or highly dependent on nature.8 Given that relationship,it comes as no surprise that many applications for EO can yield both economic and envir
109、onmental benefits.Space-based remote sensing is of particular importance as satellites help measure two-thirds of essential climate variables(ECVs)in the UNs Global Climate Observing System(GCOS)plan9 and provide an effective means to track ecological indicators like vegetation health and changes in
110、 land use.Consequently,EO can support 16 of the UNs 17 SDGs(see Figure 9),especially those focused on climate and nature.1.2 The climate and nature opportunitySDGs and targets that can be supported by EOFIGURE 9Amplifying the Global Value of Earth Observation16Source:World Economic Forum,Unlocking t
111、he potential of Earth Observation to address Africas critical challenges,2021.SDG targets that can be supported by EOClimate and nature-focused SDG targets that can be supported by EOGoalTargetContribute to progress on the target,not necessarily the indicator (target numbers represented below)No pov
112、erty1.41.5Zero hunger2.32.42.cGood health and well-being3.33.43.93.dQuality educationGender equality5.aClean water and sanitation6.16.36.46.56.66.a6.bAffordable and clean energy7.27.37.a7.bDecent work and economic growth8.4Industry,innovation and infrastructure9.19.49.59.aReduced inequalities10.610.
113、710.aSustainable cities and communities11.211.311.411.511.611.711.b11.cResponsible consumption and production12.212.412.812.a12.bClimate action13.113.213.313.bLife below water14.114.214.314.414.614.714.aLife on land 15.115.215.315.415.515.715.815.9Peace,justice and strong institutions16.8Partnership
114、 for the goals17.217.317.617.717.817.917.1617.1717.18EO also supports a dual value proposition in many commercial applications.Consider the use of Earth data to inform efficient irrigation(see section 2.1)or monitor supply chain sustainability(see section 3.3);both are examples where businesses can
115、strengthen performance and resilience while benefiting climate and nature.The inverse is also common,whereby using Earth data to demonstrate nature-positive practices can strengthen business performance.For example,both voluntary and mandatory disclosure of environmental impacts can influence a comp
116、anys position in financial markets and the eyes of their customers(see section 3.1).In this case,an environmental impact monitoring application yields direct environmental benefits that translate to indirect economic benefits captured through other applications like vulnerability analysis and supply
117、 chain monitoring.Amplifying the Global Value of Earth Observation17The climate value of EOAs shown in Table 2,EOs direct benefits for climate stem from informing actions to mitigate GHG emissions and support carbon capture.This study revealed that mitigations informed by EO data applications have t
118、he potential to reduce over 2 billion tonnes of CO2e annually by 2030.This equates to 3.8%of the global annual GHG emissions today.10 Table 3 lists the five applications with direct climate benefits which were modelled,totalling 2 Gt of CO2e and representing a portion of the potential benefit.Modell
119、ed EO applications with direct climate benefitsTABLE 3Use categoryExample applicationHow dual value is realizedGHG reduction possible in 2030Early warningEO can be used to better characterize wildfire risk and to spot wildfires faster.Following the Australian bushfires in 2020,which cost an estimate
120、d 30 lives and devastated an area equivalent to the United Kingdom,researchers estimated that early warnings could reduce the area of land affected by up to 16%.11Economic benefits from avoiding property damage alone are significant.In addition to preserving lives,livelihoods and natural ecosystems,
121、preventing or extinguishing fires before they spread can greatly limit the amount of CO2 released from combustion.12 64 million tonnes (Mt)CO2eEnvironmental impact monitoringSatellites and aircraft-borne sensors can monitor GHGs like CO2 and methane.The increasing precision of these platforms has be
122、en demonstrated to pinpoint emissions sources like oil and gas pipeline leaks.Fixing leaks means saving product and capturing incentives.The International Energy Agency estimates that oil and gas companies can reduce almost 45%of methane emissions from oil and gas operations at no net cost.131,700 M
123、t CO2eRoute optimizationIn conjunction with GNSS technology,EO can be used to dynamically plan and optimize shipping routes.For example,the Finnish Meteorological Office uses data from the EUs Copernicus programme to help ships navigate icy seas.14Increased route efficiency means shipping companies
124、can lower fuel consumption by up to 3%,15 resulting in reduced costs and direct abatement of GHG emissions.15 Mt CO2ePrecision agricultureIn a cropping context,using overhead imagery to monitor plant health can be used to infer information about nutrient uptake from soil.In turn,that information can
125、 inform variable rate application(VRA)of fertilizers,water and other inputs.VRA of fertilizer has been shown to reduce the cost of inputs by as much as 25%while increasing crop yield by 2.5%.16 Limiting fertilizer directly abates GHG emissions from nitrous oxide(N2O),which has 273 times the warming
126、potential of CO2 by mass.1727 Mt CO2eSupply chain monitoringEO has been used as an effective tool to detect illegal deforestation and inform action to stop or slow it.18Slowing deforestation can avoid direct carbon emissions and maintain carbon sinks while helping businesses to avoid fines and stren
127、gthen their position in sustainable finance markets.216 Mt CO2eTotal2 Gt CO2eAll these benefits relate to climate change mitigation,but EO is also beneficial for climate adaptation.Namely,EO can inform pathways and provide the data needed to assess business cases for adaptation.In turn,EO can be a v
128、aluable tool to help businesses and governments avoid losses and prosper through changing environmental conditions.The benefits of adaptation are largely realized as economic gains and are captured in the potential$703 billion value of EO by 2030.The ability to track global methane emissions is one
129、of the most promising dual-value applications to emerge over recent years,offering actionable data to help reduce emissions of a potent greenhouse gas while increasing operational efficiency.Methane accounts for about 16%of global emissions,trailing only CO2.19 However,it is considerably more potent
130、 than CO2,creating 80 times the 20-year warming effect in the atmosphere.20 As such,targeted efforts to reduce methane emissions are expected to significantly curb global warming.21 To support this endeavour,MethaneSAT,a wholly owned subsidiary of the non-profit Environmental Defense Fund(EDF),worke
131、d with BAE Systems(formerly Ball Aerospace)Space&Mission Systems to develop MethaneSAT.This satellite combines high spatial resolution imagery and a wide field of view to provide unprecedented precision in identifying and tracking methane emissions sources.Data from MethaneSAT will be published free
132、 of charge,enabling fast data turnaround and actionable intelligence through analyses on platforms such as Google Earth Engine.Once these data are analysed,the results will provide regulators,industry leaders,lawmakers and the public with the information needed to motivate and enable action to curb
133、emissions.The energy sector accounts for about 40%of human-caused methane emissions,the second leading contributor globally.22 Methane leaks also cost the industry an estimated$2 billion in lost revenue annually in the US alone.23 According to Shell,“Virtually eliminating methane emissions from our
134、operations by 2030 is a priority”and“standardized and consistent measurement-based quantification is of utmost importance for the industry to increase accuracy and transparency on reported emissions”.24 By providing a means to find and fix leaks quickly,MethaneSAT will enable cost-effective mitigati
135、on actions while making major strides to combat climate change.MethaneSAT launched in March 2024,aiming to support reductions in methane emissions from the oil and gas industry by 45%by 2025 and 70%by 2030.25 As its data becomes available,MethaneSAT will augment the capabilities of a rapidly maturin
136、g global ecosystem of organizations with complementary goals to stem methane emissions,including aeroplane-and satellite-based EO platforms like Insight M and GHGSat,respectively,as well as analytics firms like Kayrros using this data to provide environmental intelligence and insights.26 CASE STUDY
137、1MethaneSATAmplifying the Global Value of Earth Observation18Amplifying the Global Value of Earth Observation1919EO benefits for nature-based solutions Organizations around the world are becoming increasingly aware of the importance of healthy ecosystems and biodiversity to ensure a resilient and su
138、stainable future.To manage impacts and dependencies on nature,they must be measured.EOs benefits for nature,therefore,derive from the ability to measure a range of important factors like biomass,plant leaf chemistry,water quality and grazing patterns.With sufficient scale and revisit rates,these mea
139、surements can also serve as proxies for overall ecosystem health.Together,these measurements provide a foundation for alignment on what steps organizations can take to address their impacts and dependencies on nature.The Taskforce for Nature Related Financial Disclosures(TNFD)and the Science Based T
140、argets for Nature(SBTN)guidance aims to do just that.Through these means,organizations can use EO to monitor and protect biodiversity,design nature-positive solutions,open the door to new nature-driven markets and more(see Table 4).Example EO applications with positive nature benefitsTABLE 4Use cate
141、goryExample applicationHow dual value is realizedVulnerability analysisSatellite-based remote sensing can detect the loss of valuable mangroves by tracking changes in erosion rates along coastlines.Spotting losses early can help inform timely action for protection,recovery and restoration.Mangroves
142、are among the most valuable ecosystems in the world,supporting tourism,purifying water and serving as fisheries for valuable foods like crabs and shrimp.28 They also help prevent more than$57 billion in flood damage globally each year29 and function as significant carbon sinks.Environmental impact m
143、onitoring EO has proven to be an effective tool in supporting coral reef ecosystems.Tools like 3D maps of the Great Barrier Reef are used to target sites for restoration efforts by foundations,governments and commercial companies.30 The Great Barrier Reef is the home of hundreds of thousands of spec
144、ies and contributes almost$5 billion to the Australian economy each year.31Dual nature and economic value can also be seen in the emergence of nature-related disclosures for financial markets.The Taskforce on Nature-related Financial Disclosures(TNFD)a framework focused on governance and underpinned
145、 by measurable metrics is a direct answer to the call from consumers and investors for more transparency around climate and nature impacts.While both may seek to avoid supporting companies that negatively impact nature,investors and other financial entities also see biodiversity loss as a material r
146、isk to their bottom line.SBTN guidance will ensure that businesses are acting in line with science and ensure that any nature-based solutions they are considering alongside their emissions reduction efforts are implemented in a way that maximizes the benefits for nature,communities and climate.Johan
147、 Rockstrm,Director,Potsdam Institute for Climate Impact Research27Industries with the most value to gain2Six industries stand to capture 94%of the projected economic value.Amplifying the Global Value of Earth Observation20Amplifying the Global Value of Earth Observation21AgricultureMining,oil and ga
148、sGovernment,public and emergency servicesElectricity and utilitiesSupply chain and transportInsurance and financial servicesManufacturingProfessional servicesHealthConstructionInformation,media and technologyTourism and service industry$399$108$47$47$35$23$14$13$6.4$5.2$4.2$0.7Early waves of EO adop
149、tion most benefited tech-ready industries such as insurance,financial services,mining,oil and gas,which were able to uncover novel insights for decision-making.Industries such as agriculture,government,electricity,utilities,supply chain and transport are expected to capture the lions share of value
150、over time,in line with their propensity to adopt technologies later.The potential economic value added from EO to each industry is illustrated in Figure 10,94%of which is expected to be driven by applications in the six key industries highlighted in the sections to follow.Within each industry,exampl
151、e EO applications that provide economic and climate value are highlighted,with those included in modelling efforts tagged accordingly.For more information on the modelled applications,please refer to Appendix 1.Potential global economic value from EO data by 2030($,billions)FIGURE 10Amplifying the G
152、lobal Value of Earth Observation22Agriculture could capture more than 50%of the economic value from EO in 2030.85%of that value is driven by productivity-enhancing precision agriculture.Precision agriculture can help eliminate 27 million tonnes(Mt)of GHG emissions per year.Key findingsFIGURE 11Table
153、 5:Example EO applicationsTABLE 5Included in economic valuationIncluded in GHG valuationProductivity increaseCost avoidanceModern agricultural practices increasingly rely on EO data.In technologically advanced farming operations,EO plays a vital role in daily operations,from guiding the optimal appl
154、ication rates of fertilizers and water to increasing the accuracy of yield estimates.Agricultural EO applications represent a nearly$400 billion economic opportunity in 2030.Even as EO data and services become more readily available,usable and affordable,infusing this technology in an industry that
155、is typically slower to adopt new technology can present challenges.Traditional operations benefit from integrating remote sensing and in-situ data sources to provide cost-effective,localized insights and find strategies to deploy them at scale.Dual value:The use of EO in agriculture exemplifies how
156、data-driven decisions to reduce consumption to simultaneously benefit the environment and the bottom line.For example,studies have shown that fertilizer inputs can be cut by 4-6%overall when using EO for precision agriculture,32 allowing farmers to cut costs while also reducing GHG emissions from fe
157、rtilizers.EO-enabled,targeted water and pesticide applications can further limit harmful effects on ecosystems and biodiversity.EO can also be used to independently verify carbon sequestration and other sustainable agriculture and aquaculture practices.2.1 AgricultureUse categoryExample applicationH
158、ow dual value is realizedPrecision agri/aquaculture CroppingGives farmers access to higher quality information about plant health that can improve decision-making for variable rate application of inputs like fertilizers and water,leading to higher crop output Fishery managementProvides information o
159、n water quality and fish stocks to inform optimal aquaculture site management and harvesting Livestock managementHelps farmers manage livestock more effectively,by enhancing grazing decisions and unlocking targeted interventions to increase pasture biomass Timber harvestingOptimizes the timing and a
160、mounts of harvesting by providing key indicators of vegetation healthEarly warning Wildfire detectionImproves wildfire suppression responses with better characterization of the risk they will occur and earlier detection when they doFamine forecastingSupports early identification of shortages in impo
161、rtant crops like corn and wheat to inform mitigating action by governments or non-profitsVulnerability analysis Seasonal weather forecastingEnables data-driven decisions such as when to plant and harvest certain crops or when watering is needed,based on climate and weather forecastsAccess to finance
162、Uses satellite imagery and location intelligence to de-risk loans that finance essential cropping inputsSupply chain monitoring Sustainable forestryProvides traceability of timber,helping to enable compliance with sustainable forestry regulationsAmplifying the Global Value of Earth Observation23Earl
163、y adopters of EO in the electricity and utilities industry have gained an information advantage that extends from generation site selection to demand-side management.Utilities providers can also benefit by using EO to assess vulnerabilities in large-scale infrastructure like pipelines and power grid
164、s.For example,electric utility provider Southern California Edison uses EO for wildfire risk management,identifying at-risk assets in regions susceptible to wildfire through the fusion of EO data with machine learning algorithms.33Dual value:In the electricity and utilities industry,EO can be used t
165、o improve the quantity and quality of data that inform site selection and operations management for renewables projects.Forecasting the energy potential for new solar,wind and hydropower sites expected as part of the proliferation of renewable energy this decade can help improve the return on invest
166、ment of projects by increasing system performance and optimizing energy trading strategies.34 As such,EOs dual value proposition for electricity and utilities could accelerate the energy transition while enabling over$47 billion in economic value.2.2 Electricity and utilitiesElectricity and utilitie
167、s could become the fourth largest beneficiary of EO in 2030 with a$47 billion boost in productivity.APAC can lead in growth,capturing 52%of the value added in 2030 due to the regions high investments in renewables.Indirect climate benefits stem from renewables planning and optimization.Key findingsF
168、IGURE 12Example EO applications TABLE 6Use categoryExample applicationHow EO adds valueSite selection Clean energy planningIdentifies optimal locations for clean energy assets(pumped hydro,solar,wind,transmission)through both historical and projected environmental impact measurements Early warning E
169、nergy demand forecastingInforms weather forecasts and climate models that can be used to forecast heating and cooling demand,helping to optimize energy supply and reserves Energy output forecastingSupports short-term forecasting that enables loans planning and trading strategies based on renewable e
170、nergy generation from wind,solar and tidal sourcesVulnerability analysis Network condition monitoringInforms modelling of the long-term structural integrity of large-scale energy infrastructure,such as power lines or solar plants,to characterize risks from environmental hazards like land subsidence
171、or vegetation encroachment Severe weather modellingForecasts severe-weather events that may impact the reliability and availability of electricity networks or lead to failures in critical infrastructure such as dams,allowing for mitigation strategies to be put into placeIncluded in economic valuatio
172、nIncluded in GHG valuationProductivity increaseCost avoidanceEstablished applications continue growing towards a potential$47 billion value in 2030.Deterring illegal activities and enabling emergency management are primary drivers of value.Early warning for wildfires can help eliminate 64 Mt of GHG
173、emissions per year.Key findingsFIGURE 13Included in economic valuationIncluded in GHG valuationProductivity increaseCost avoidanceAmplifying the Global Value of Earth Observation24The EO data story,especially as it relates to satellite-based remote sensing,began with governments.As a result,the adop
174、tion of EO data in governments with well-established space programmes,like the US,the EU,Japan and others,is robust.These countries have broad applications in downstream uses from emergency management to urban planning and much more.Today,both legacy and newly established government EO programmes ar
175、e not only deploying new satellites but also buying EO data from commercial providers.As such,government applications of EO are expected to see significant continued growth in adoption.Dual value:EO is anticipated to generate a significant double dividend as it relates to disaster mitigation and res
176、ponse.Timely situational awareness can help avoid substantial capital losses while simultaneously mitigating environmental impacts.Environmental benefits can include avoiding biodiversity losses and GHG emissions from wildfires or reducing harmful impacts to vegetation,water quality and ecosystems f
177、rom floods.Proactive monitoring of high-risk areas through EO allows resources to be deployed quickly for emergency management and disaster response teams to achieve their missions.For example,a study of near real-time routing for emergency services could significantly shorten average response times
178、 in the flood-prone Lower Mekong River Basin.The result of using EO data in this case could not only save lives but also millions of dollars annually.352.3 Government,public and emergency servicesExample EO applications TABLE 7Use categoryExample applicationHow EO adds valueSupply chain monitoring I
179、llicit activity monitoring and enforcementMonitors land use,water use and infrastructure changes over time using optical and radar data to detect illegal extraction(e.g.mining,fishing)and trafficking Post-event analysis Disaster response managementProvides near real-time updates on changes(or damage
180、)to structures,land and vegetation,allowing for a more cost-effective responseVulnerability analysis Transport infrastructure monitoringImproves surveying methods that can be used to model degradation to roads and other infrastructure,thereby improving preventive maintenance Site selection Sustainab
181、le urban planningEnables monitoring of indicators like air quality and land use in human settlements to help select locations for housing,transport and public spacesEarly warning Hazards monitoringAssesses the risks posed by environmental hazards such as floods,droughts,forest fires,landslides and t
182、sunamis and enables early detection of the signatures associated with the onset of disastersKey findingsFIGURE 14Amplifying the Global Value of Earth Observation25Extreme weather and disaster risk mitigation contributes$23 billion to EOs economic opportunity by 2030.Digitally intensive and tech-read
183、y,the industry may experience three-fold growth in the value of EO from 2023 to 2030.Sustainable finance can drive substantial indirect climate benefits.Insurance companies and financial institutions have used EO to estimate potential losses in the wake of a disaster for over a decade,with human ana
184、lysts interpreting data and estimating costs.More recently,the emergence of automated services has led to rapid growth in EO applications in both insurance and financial services industries,given their relative propensity to adopt new technologies quickly.Insurance companies capture much of this val
185、ue by using EO data to better assess risk,offer parametric insurance products and find efficiencies in assessing claims.In financial services,EO provides accuracy and traceability for key metrics related to commodity sourcing,sustainable operations and exposure to physical risks from climate change
186、and more,enabling data-driven decisions for investment and lending.Dual value:Biodiversity loss and climate change pose material physical and transition risks to assets under management by the financial services and insurance industries.EO data can help better understand and mitigate environmental r
187、isks,both through measurement and verification and through adapting investment decisions to favour environmentally sustainable assets.2.4 Insurance and financial servicesExample EO applications TABLE 8Use categoryExample applicationHow EO adds valueSupply chain monitoring Market efficiency for commo
188、dities tradingProvides timely data on economic indicators such as global shipping volumes,manufacturing output(e.g.cars leaving manufacturing facilities)and proxies for retail performance which support accurate pricing of assets in financial services Sustainable finance(verification)Monitors product
189、ion and operations to support verification of sustainability metrics such as ethical sourcing claims that are tied to financial reporting requirements or energy transition investmentsVulnerability analysis Sustainable finance(investment analysis)Enables objective and reproducible analyses to model a
190、nd manage exposure of financial investments to environmental related risks Insurance premium calculationSupports assessment of asset value and relevant hazards(such as the proximity of trees or swimming pools for homeowners insurance)to calculate appropriate coverage and premiums more efficiently Cr
191、edit risk modellingForecasts revenue based on production trends and yield modelling,thereby providing a cost-effective means to assess credit worthiness(such as for rural farmers)Included in economic valuationIncluded in GHG valuationProductivity increaseCost avoidanceThe applications of EO in minin
192、g,oil and gas start upstream in the industry,with insights to support cost-effective extraction and extend to reliable and efficient distribution,storage and downstream operations.As a result,the industry is seen as a top adopter of EO technologies,with a modelled adoption rate near 60%in 2023.Satel
193、lite imagery can help identify areas with the highest mineral resource potential in a more cost-efficient manner than traditional methods,especially in remote regions.Additionally,EO measurements can provide near real-time information on leaks and emissions,allowing organizations to prioritize fixes
194、 that limit both production losses and environmental damage.Dual value:The dual value of EO in detecting and mitigating GHG emissions from oil and gas is explored in section 1.2.Additionally,in the mining industry,studies are under way to use hyperspectral imaging to search for rare Earth minerals l
195、eft behind in old mines36 and to combine data from space-based remote sensors with in-situ sources to enhance lithium exploration.37 These techniques,if successfully scaled,may accelerate the pipeline of critical minerals projects that are crucial to supply a range of technologies needed in the ener
196、gy transition,such as electric vehicles and wind turbines.2.5 Mining,oil and gasKey findingsFIGURE 15As a mature EO user,the industry derives the second largest share of value from EO,a$108 billion opportunity in 2030.EO can support resource exploration,help optimize capital-intensive operations and
197、 reduce risk to infrastructure.Detecting and mitigating emissions with EO can help eliminate 1.7 Gt of GHG emissions per year.Amplifying the Global Value of Earth Observation26Example EO applications TABLE 9Use categoryExample applicationHow EO adds valueSite selection Resource explorationImproves r
198、esource exploration accuracy for new mineral extraction sites(especially in remote areas)and for assessing resources remaining in old mines,leading to higher extraction volumesEarly warningTailings dam monitoringDetects ground movement to predict potential failures of the tailings dams that are used
199、 to collect potentially toxic by-products of mining,enabling preventive maintenance Extraction operations Supports safety and efficiency by monitoring and forecasting environmental conditions that may impact extraction operations and logistics Environmental impact monitoringPollution monitoring Moni
200、tors activities within extraction areas and waste sites to detect pollution and support remediation both during and after operations at the site Vulnerability analysis Pipeline monitoringMonitors pipeline condition using specialized sensors to measure change over time and environmental readings to d
201、etermine potential leakages Weather forecastingImproves long-term planning to minimize project delays and forecasts short-term weather events to mitigate potential damagesIncluded in economic valuationIncluded in GHG valuationProductivity increaseCost avoidanceMost long-range transport methods have
202、long relied on EO-enabled weather information to effectively plan routes and are now integrating additional EO-enabled insights for route optimization,like measuring particulate matter in air routes or sea ice levels for ship routes.EO also provides traceable supply chain insights for an increasing
203、number of companies focused on ethical sourcing.Not only can companies track physical goods within their own supply chain operations,but also upstream in the supply chains of their vendors.Dual value:As environmentally conscious consumers exert pressure on markets to ethically source products,organi
204、zations differentiate with verified proof of origin traceable with EO intelligence.Research shows that as much as a 10-15%price premium may be levied for sustainably sourced commodities.38,39 For example,Satellogic(among other providers)uses satellite data to help demonstrate“deforestation-free”coco
205、a harvested in West Africa.402.6 Supply chain and transportKey findingsFIGURE 16EOs value could grow from$14 billion in 2023 to$35 billion in 2030,driven by route optimization and supply chain monitoring.Using EO to improve freight routes could drive efficiency gains of$9 billion to the industry in
206、2030 alone.Optimising shipping routes could help reduce 15 Mt of GHG emissions per year.Amplifying the Global Value of Earth Observation27Example EO applications TABLE 10Use categoryExample applicationHow EO adds valueEnvironmental impact monitoringShipping emissions Detects pollutants emitted from
207、ships,such as airborne emissions that manifest in artificial clouds(ship tracks),helping to monitor and enforce emissions regulationsRoute optimization Ship route optimizationEnables dynamic route planning through the near real-time monitoring of water depth,winds,waves,currents and sea ice conditio
208、ns,allowing ships to shorten routesPlane route optimizationPredicts and monitors air conditions and hazards from weather and other events(e.g.volcanic eruptions),which enables near-real-time adjustments to routes Traffic congestion monitoringMonitors traffic conditions in real time and informs drive
209、rs of alternatives,thereby optimizing timeSupply chain monitoring Proof of originEnables accurate and verifiable tracing of globally traded goods,enhancing supply chain resilienceVulnerability analysis Seasonal weather informationForecasts adverse weather conditions to improve safety of all modes of
210、 transportIncluded in economic valuationIncluded in GHG valuationProductivity increaseCost avoidanceCross-industry uses of EO to amplify climate and nature impact3Harnessing the dual value of EO in three high-impact uses can accelerate market growth and drive measurable progress towards climate and
211、nature goals by 2030.Amplifying the Global Value of Earth Observation28Amplifying the Global Value of Earth Observation29As explored in chapters 1 and 2,EO can contribute to planetary well-being through a wide variety of applications.Activating the economic co-benefits of dual value applications is
212、a promising mechanism to capture yet untapped value.Among dual-value applications,those with the greatest potential to accelerate global impact are both feasible and scalable:Feasibility Technical feasibility:Enabling technologies,like specific sensors and analytics capabilities(e.g.AI and cloud com
213、puting),are mature and widely available or will be in the coming years.Operational feasibility:The implementing organization has the capability and direct influence to achieve its intended outcomes.Economic feasibility:Returns financial or otherwise outweigh incremental costs and are sufficient to c
214、lose the business case.Scalability Organizational scalability:The value proposition is not highly dependent on organization-specific capabilities or business models that would present barriers to entry.Cross-region scalability:Applications are extensible to different regions and geographic scales(i.
215、e.local,regional or global),and regional differences do not significantly hinder the adaptation of EO applications to new locations.Cross-industry scalability:The value proposition is relevant and attainable across multiple industries.When coupling these feasibility and scalability considerations wi
216、th the corresponding economic,climate and nature value modelled in this study,the following use categories stand out as highly promising:1.Environmental impact monitoring All identified industry groups have at least an emerging application for environmental impact monitoring,with over 50%having a de
217、monstrated application.A majority(over 80%)of identified potential GHG emissions reduction from the use of EO can be tied to EO-enabled environmental impact monitoring.2.Vulnerability analysisOver 60%of industry groups have a demonstrated application for vulnerability analysis in the market,with all
218、 industries having at least an emerging application.By 2030,EO-enabled vulnerability analysis could support$138 billion in economic value,and all modelled applications have the potential to create positive downstream environmental impacts.3.Supply chain monitoringOver 90%of industry groups have a ty
219、pe of supply chain monitoring application,with over 40%having a demonstrated application in the market today.The use of EO for supply chain monitoring could generate upwards of$60 billion in economic value in 2030,and all modelled applications have the potential to create positive downstream environ
220、mental impacts.A majority(over 80%)of identified potential GHG emissions reduction from the use of EO can be tied to EO-enabled environmental impact monitoring.Growing public awareness of climate change and environmental degradation has spurred a global push for monitoring and accountability.Environ
221、mental,social and governance(ESG)standards are rapidly evolving from elective to directive and varying in geographic applicability.A few of the recent and noteworthy actions influencing environmental impact monitoring and disclosure practices include:In the EU,the Corporate Sustainability Reporting
222、Directive(CSRD)mandates climate disclosures for companies listed on EU-regulated markets beginning in 2024.41 Separately,the EU Deforestation Regulation(EUDR)will take effect in December 2024 and will require reporting on the provenance of commodities.42 Regulation approved by the US Securities and
223、Exchange Commission(SEC)in March 2024 will require reporting of climate-related disclosures,including governance of climate-related risks,the impact of climate-related physical and transition risks,and scope 1 and 2 GHGs.43 Frameworks developed by the Task Force for Nature-Related Financial Disclosu
224、res(TNFD)and the Task Force for Climate-Related Financial Disclosures(TCFD)are intended to improve the alignment and interoperability of global standards.In 2023,the International Sustainability Standards Board(ISSB)incorporated TCFD recommendations into its first two standards,which it will use to
225、monitor companies progress.44 In addition to satisfying increasing reporting requirements,showcasing the impact of environmental initiatives can provide financial benefits in an increasingly environmentally conscious world.After all,over 85%of investors considered ESG factors in their investments in
226、 2020,45 and a 10%improvement in company-level ESG performance indicators correlates with an approximate 1.8 times higher market value(measured by EV/EBITDA46 multiple).47 This signals that environmentally sustainable business practices will not only reshape investment decisions but also tie to over
227、all business performance.As a result,over 40%of Standard and Poors(S&P)500 companies now voluntarily address some aspect of sustainability in financial filings.48 For both mandatory and voluntary disclosures,having ready access to objective,repeatable and near-real-time data is key.In principle,EO c
228、an provide just that.However,environmental standards and disclosure requirements like EUDR and TCFD typically focus more on what to measure than how to do so.As a result,there is still a need for collaboration across the EO industry to define shared standards fulfilling regional and global environme
229、ntal commitments and frameworks.Non-profit organizations,industry consortiums and intergovernmental bodies can all play a role in positioning EO to capitalize on these driving forces for growth.3.1 Environmental impact monitoring and disclosure Amplifying the Global Value of Earth Observation30Issue
230、As part of its commitment to carbon neutrality across its entire value chain by 2030,Apple launched the EO-enabled Restore Fund.This key initiative supports projects to restore and protect critical ecosystems and expand carbon removal solutions,helping to address residual emissions businesses cannot
231、 yet avoid.As the projects so far cover 250,000 acres of land,measuring and quantifying the impact on carbon removal would be challenging with traditional,on-the-ground measurement methods.49SolutionWith$400 million in funding to date,Apple addressed this issue using EO data,including high-resolutio
232、n satellite imagery from Maxar,to develop carbon maps of the projects.Additionally,Apple is looking to use iPhone light detection and ranging(LiDAR)sensors as a source of in-situ data to bolster existing satellite data.This allows Apple to accurately monitor each project,as well as quantify and veri
233、fy the carbon removal.Accurate quantification and measurement of the carbon removal impact of Restore Fund projects will help Apple better track and report its progress towards carbon neutrality in 2030.50ImpactBy implementing cutting-edge technology,Apple not only enhances its ability to track and
234、showcase the effectiveness of its carbon removal initiatives but also increases transparency in its data-driven strategy to address climate change.CASE STUDY 2Apple combines satellite and in-situ sources to track carbon removal progress There is still a need for collaboration across the EO industry
235、to define shared standards fulfilling regional and global environmental commitments and frameworks.Virtually any organization that manages or has an interest in physical assets can find applications for EO to support vulnerability analysis.The broad applicability of EO for vulnerability analysis is
236、rooted in the diversity of hazards across natural and human-made systems that can be observed.Changing environmental conditions pose wide-ranging hazards to built infrastructure,human health,biodiversity and more.By providing insights into these hazards,EO data helps organizations make data-driven d
237、ecisions and take a proactive rather than reactive mitigation approach.For example,the ability to monitor areas where vegetation is encroaching on power lines helps utility companies perform preventive maintenance that reduces the likelihood of fires starting.In turn,this helps avoid both ecosystem
238、and financial losses.In a preparedness context,modelling the size and distribution of human populations can enable organizations to develop data-driven strategies to mitigate disaster risk and improve response plans.For example,public health agencies can infuse EO data into models about where and wh
239、en diseases may spread to help mitigate severity.The EO4Health Initiative developed a dengue fever forecasting system using EO data to map high-risk areas and create an early warning system.51From a financial viewpoint,this typically translates to preventing or reducing losses,including through prot
240、ecting natural systems that businesses from tourism to agriculture depend on.After all,over half the worlds total GDP is moderately or highly dependent on nature.52 EO-enabled vulnerability analysis also facilitates market activities based on risk assessments in industries ranging from government to
241、 insurance and financial services.For example,monitoring the changing sea levels or the effects of beach erosion helps assess risks to coastal properties,thereby informing insurance coverage and premiums.3.2 Vulnerability analysisAmplifying the Global Value of Earth Observation31IssueInsurance provi
242、ders assess disasters from two sides:estimating the risk of an event(potential frequency and magnitude)and claims after an event.53 With the increasing frequency of disasters,private insurance company Tokio Marine sought a technology that would pre-emptively assess risk to set more accurate premiums
243、 and make insurance payments as quickly as possible.SolutionTokio Marine partnered with ICEYE Finland to implement ICEYEs synthetic-aperture radar(SAR)imaging capabilities,which provide near-real-time analysis to assess the extent of damage from events such as flooding,allowing them to calculate los
244、ses and process claims more quickly.54 Tokio Marine and ICEYE look to further their collaboration efforts,using EO to inform on the climate risk of a building and set premiums more accurately at the onset while better informing occupants of the risk.ImpactAn improved understanding of existing and fu
245、ture climate risks generates significant operational value for Tokio Marine by guarding against climate-driven premium losses and giving Tokio Marine a competitive advantage in claim response time.This approach also has impacts beyond the organization itself.By more accurately factoring climate risk
246、s into insurance pricing,Tokio Marine and other insurers can exert market pressure on developers to account for climate considerations in their construction projects so that insurance premiums remain at commercially viable rates.CASE STUDY THREETokio Marine and ICEYE partner to use EO for disaster i
247、nsurance EO-enabled vulnerability analysis facilitates market activities based on risk assessments in industries ranging from government to insurance and financial services.SAR data is used to help assess flood risks.Image credit:ICEYEAmplifying the Global Value of Earth Observation32Applications to
248、 track and optimize supply chain operations include supervising the movement of goods,assessing transport routes and ensuring ethical sourcing by providing visibility into upstream commodity suppliers.Organizations can deepen insight into weather conditions,traffic patterns,infrastructure conditions
249、 and hazards that impact the supply chain,identifying disruptions either in real time or through predictive analytics.Additionally,companies can use EO data to enhance their supply chain efficiency and monitoring by optimizing delivery routes to decrease travel time and transport costs and increase
250、accuracy.EO data also enables organizations to trace the origins of products and raw materials to promote accountability for illegal activities and unethical practices in companies supply chains.These insights enable organizations to assess the sustainability of resource use and reduce unsustainable
251、 activities,such as deforestation,throughout their value chains.3.3 Supply chain monitoringIssuePalm oil appears in about half of the products found at supermarkets today and is in high demand as a common ingredient due to its cost-competitiveness and versatility.Production tripled between 2000 and
252、2020,leading to significant deforestation and habitat loss from clearing land to cultivate oil palms.55 Nestl has been working for more than 10 years on reducing the risk of deforestation in its palm oil supply chain,using a combination of tools to map,monitor and inform interventions.SolutionIn 201
253、7,Nestl began working with Starling a collaborative venture between Airbus and the Earthworm Foundation to incorporate satellite data into its supply chain mapping and deforestation monitoring efforts.With optical and radar data from Starling,Nestl monitors over 9,000 farms.When deforestation is lin
254、ked to its suppliers,Nestl works with them to develop and implement collaborative remediation strategies.56 Satellites support ongoing monitoring of the palm supply chain and,more recently,are being piloted to add transparency to the companys reforestation projects.ImpactUsing Starling data has help
255、ed Nestl identify,understand and address the drivers for deforestation in its supply chain.The company reports that as of 2023,96%of its palm oil supply chain was assessed as deforestation-free,57 up from 70%in 2020.58 Further,through its reforestation efforts,the company aims to plant and grow 200
256、million trees in its sourcing landscapes by 2030.59 CASE STUDY FOURNestl uses satellite data to advance responsible sourcing of palm oil EO data also enables organizations to trace the origins of products and raw materials to promote accountability for illegal activities and unethical practices in c
257、ompanies supply chains.Amplifying the Global Value of Earth Observation33Strategies to activate EOs potential 4Maximizing the global impact of EO calls for collaborative action across the value chain.The EO ecosystemFIGURE 17Data acquisitionData processing and analyticsData useEO industryUpstream co
258、llection and provision of EO dataMidstream platforms and value-added products and servicesDownstream applications throughout industriesDownstream usersPrivate sectorGovernmentCivil societyAcademiaAmplifying the Global Value of Earth Observation34EO is an extraordinary tool for creating both economic
259、 value and positive environmental impact.Maximizing that value and impact depends on a dramatic increase in global adoption.The following sections offer strategies to advance EO uptake and the value derived from it.To succeed in these strategies,one underlying theme is clear:sustained multi-discipli
260、nary collaboration is essential.With near-endless applications for EO,each with its own unique technical requirements,industry dynamics,geographic and cultural nuances,user preferences,dependencies,and implementation models,a one-size-fits-all approach simply does not work.Instead,collective action
261、is needed from a vibrant ecosystem that spans the entire value chain,as shown in Figure 17.1.Open the aperture of end-user awarenessThe tide is shifting among many global executives,but awareness of EO is still limited.A lack of awareness of industry-specific and function-specific applications remai
262、ns a barrier to adoption.Addressing this barrier is largely a matter of educating end users,but it is not just the role of commercial EO providers.Governments play an important part in building awareness and can do so by continuing to share success stories from public investments,setting policy and
263、advocating for EOs use in applications that benefit society and the economy.Academia and civil society organizations can play a similar role and bring an independent,objective voice to complement and balance the marketing efforts of commercial EO providers.Acknowledging the gaps and limitations of E
264、O solutions can go a long way in building trust and avoiding unrealistic expectations from end users.Academic and research institutions can also contribute by helping to build the knowledge base around EO data.A focus on advancing critical thinking using Earth data,beyond the simple use of geospatia
265、l software,will ensure that students can develop more flexible and adaptable skills to address a wide variety of challenges using EO.Finally,industry leaders looking to find advantages by using EO can start by investing in building an EO-ready workforce.This includes having team members who are awar
266、e of the capabilities of EO measurements and the relevant applications within their industry,as well as encouraging the use of Acknowledging the gaps and limitations of EO solutions can go a long way in building trust and avoiding unrealistic expectations from end users.Amplifying the Global Value o
267、f Earth Observation35geospatial problem-solving.Resources from public sector EO programmes,such as NASAs Applied Remote Sensing Training(ARSET)programme,provide a valuable resource for training.2.Enable innovation with open standards,data and solutionsContinued innovation in services and business mo
268、dels is key to expanding the reach of EO to new end users,and access to EO data is a prerequisite for researchers and start-ups to explore new possibilities.However,expensive datasets that are hard to access can hold back the experimentation thats needed in early-stage research and development.Open
269、standards,data and solutions can help bridge the gap.According to Jed Sundwall,Executive Director of Radiant Earth,“Open data that uses widely adopted standards can support the creation of many more applications that can reach esoteric audiences of end users”.Standards like the SpatioTemporal Asset
270、Catalog(STAC)and Analysis Ready Data(ARD)aim to ensure interoperability and maximize the value of geospatial data.They are industry-driven,with input from the open-source community in coordination with groups such as the Cloud-Native Geospatial Foundation and the Committee on Earth Observation Satel
271、lites(CEOS).Despite significant uptake from major industry players,more work is needed across the EO ecosystem to establish consistent definitions,build consensus and increase the adoption of standards.Open data and solutions are also key ingredients for a robust ecosystem of value-added services si
272、nce they allow for low-risk experimentation and innovation among start-ups.60 Cloud platforms like Amazon Open Data,Google Earth Engine and others make EO data and analytics tools publicly available,supporting research,technology development as well as ultimately expanding the impact and application
273、s of these critical datasets.Providing free access to limited commercial datasets,as Umbra has done with SAR data,is another promising approach to support exploration.3.Continue investment to advance EO technologies Over the past decade,new satellites and sensors have dramatically expanded the quali
274、ty,coverage and range of EO data available.At the same time,advances in high-performance computing,cloud,edge processing and AI are helping unlock the rich insights buried in the vast quantity of EO data.Pushing the boundaries of these technologies is important to fuel innovative downstream applicat
275、ions,and investment from both the public and private sectors plays an important role.The private sector has driven a rapid cycle of remote sensing technology innovation,fuelled by internal research and development(R&D)investments and external capital raises.For example,venture capital firm DCVC,whic
276、h focuses on technology start-ups addressing challenges in the space and climate industries,provided early investment to Planet Labs,helping to establish the daily global imaging capability they are known for.Matt OConnell,Operating Partner at DCVC,said,“Venture capital is willing to lean forward en
277、ough to build out the capabilities that are necessary”.In the public sector,national programmes and international collaborations also play an important role in fielding next-generation EO capabilities.For example,NASA and the Indian Space Research Organization(ISRO)partnered to develop the NASA-ISRO
278、 Synthetic Aperture Radar(NISAR)satellite,which will use a first-of-its-kind technique designed to provide wide coverage and fine-resolution radar observations at the same time.61 Costing$1.5 billion and requiring a decade to develop,NISAR is a typical example of a major innovation made possible wit
279、h government backing.Government funding is also an important stimulus for innovation in the private sector and academia,such as the UK Space Agencys investments in early R&D of EO technology through the Earth Observation Technology Program.62 Over the past decade,new satellites and sensors have dram
280、atically expanded the quality,coverage and range of EO data available.NISAR Satellite.Image credit:NASA Jet Propulsion LaboratoryAmplifying the Global Value of Earth Observation364.Focus on equity in access to EO insights Based on modelled adoption rates,markets in the Global South particularly in A
281、frica stand to realize the greatest percentage growth in the value of EO from 2023 to 2030.Accelerating uptake can have a real impact on economic growth and help tackle issues from water scarcity to food security.Government agencies play a foundational role upstream,whereby programmes provide free a
282、ccess to thousands of datasets.Yet,broadening the utility of these datasets for end users can require shifting from data to insights and establishing cloud-native standards like STAC to facilitate use.In the US,the Inflation Reduction Act(IRA)provided the National Oceanic and Atmospheric Association
283、(NOAA)with over$3 billion to help the country build climate resilience.A significant portion of that funding is dedicated to improving services derived from Earth data for underserved communities.63 Non-profit and philanthropic organizations like Digital Earth Africa play a crucial role by translati
284、ng available EO data into useful information and services targeted to the unique challenges faced by different communities.64 5.Provide solutions,not pixels,to reach new customers Beyond technology improvements,business model innovation is critical to getting EO insights in the right hands.According
285、 to Euroconsult,37%of the$5.5 billion in cumulative funding raised in the EO industry between 2011 and 2022 flowed to value-added services.65 When compared to the 150-fold value increase enabled midstream and downstream in the EO value chain,that proportion seems imbalanced.Additional focus from inv
286、estors and EO providers on creating value-added services tailored to downstream applications is likely needed to extract the full value of new SAR,hyperspectral,LiDAR and other sensors that are coming online.Investment doesnt have be limited to the EO industry alone.For example,a mining company foun
287、ded in 2018,KoBold Metals,has now raised more than$400 million to capitalize on opportunities in AI-and geospatial-driven solutions to find deposits of copper,lithium and other minerals needed to support the energy transition.66 Luca Budello,Geospatial Lead for Innovate UK Business Connect,said,“If
288、we dont integrate EO-based outputs into the systems that end users actually use,it doesnt create the actionable intelligence they need to make decisions”.Consultancies and other intermediaries can help amplify the reach and uptake of EO data by translating capabilities into solutions that are tailor
289、ed to their clients unique challenges.In doing so,these intermediary players can lower barriers to adoption.Processed image of a river in Senegal showing the prevalence of water from 2013 to 2019 in false colour(blue=always water,green=sometimes water,red=never water).Image credit:DE Africa Non-prof
290、it and philanthropic organizations like Digital Earth Africa play a crucial role by translating available EO data into services that target unique community-level challenges.ConclusionAmplifying the Global Value of Earth Observation37Earth observations ability to inform valuable decisions across nea
291、rly all industries lends to a compelling value proposition.The technologys outlook is encouraging but not without challenges.Barriers,including limited awareness of EO applications,a shortage of specialized talent,fragmented standards and difficulty navigating the complex EO marketplace,are limiting
292、 uptake.Even applications that have demonstrated their feasibility in project-based environments need investment to mature into scalable solutions.However,there is optimism among EO industry professionals about the role that enabling technologies like AI can play in making EO accessible to non-exper
293、ts and lowering the demand-side barriers to entry.Exciting developments in satellite and sensor technology,advanced computing and a growing ecosystem of Earth intelligence providers are also pushing the envelope of what is possible with EO data.As the Chief Impact Officer of Planet Labs,Andrew Zolli
294、,commented,“The library science era of EO is about to end”.Between 2023 and 2030,Earth observation could add a cumulative$3.8 trillion to the global economy while eliminating more than 2 Gt of GHG emissions per year.These outcomes present a compelling case for greater adoption and collaborative acti
295、on from every player on the value chain is needed to make this future state of EO a reality.Prioritizing the implementation of dual-value EO applications is not only key to unlocking economic value and growing the EO industry,but it is also a vital strategy to advance climate-and nature-focused goal
296、s by 2030.Through a collective focus on stimulating demand,advancing the use of AI and other enabling technologies and establishing key standards needed to make Earth data ubiquitous,Earth observation can help shape a more sustainable and prosperous future for generations to come.AppendicesThis stud
297、y estimated the potential economic value generated not only by the Earth observation(EO)sector but also from the use of EO data across downstream industries.Economy-wide spillovers from the use of EO were not quantified but captured qualitatively.The growth path was modelled based on an increase in
298、the adoption of EO technology at the global level out to 2030.As noted by Sobhanmanesh et al,“the approach to technological transformation varies depending on location,industry,and organisation”.67 Key modelling parameters include:Scale and attribution of benefit across industries:In what ways,and b
299、y how much,do different industries benefit from the use of EO?Current and future adoption:What is the current adoption rate possible across the economy?How will this change in the future?Technology adoption profiles across industries:By how much does the propensity to adopt technology vary by indust
300、ry?Accounting for regionality:How will the adoption of EO technology be impacted by structural economic differences across regions?To capture these key aspects,this reports technology adoption model,used to estimate the economic and climate impact of EO on the global economy,was built following thes
301、e steps:Step 1:Estimate the current value of the EO sectorThe European Union Agency for the Space Programmes(EUSPA)68 EO and GNSS Market Report was used to inform the current value of the EO industry.EUSPA valued the EO industry through revenue estimates of data and value-added services sales.Notabl
302、y,this valuation is limited to commercial transactions and excludes most government and defence activities.Revenue figures were transformed into value-added figures using the value added-to-revenue ratio of the information,media and technology(IMT)sector,provided by the Global Trade Analysis Project
303、(GTAP)database.69 The IMT sector was chosen as a proxy for EO data and services providers as it encompasses the EO industry.Step 2:Estimate the current value of benefits derived by EO usersTo estimate the value added by EO use to the global economy,a“bottom-up”approach was taken to capture the margi
304、nal benefit of use across a range of sectoral applications.To inform this process,a catalogue of use cases was established,which was then narrowed into broader categories(see Figure 18).The criteria for prioritization in this study reflected the importance of having representative uses that reflect
305、the breadth of EO capability,geographic spread,applicability and examples of uptake across a broad range of sectors.Use case selectionFIGURE 18EO data has countless applications across nearly every industry.The following steps were applied to prioritize use cases for inclusion in the study:Site sele
306、ction Reviewed secondary sources(e.g.EUSPAs EO and GNSS Market Report)to identify the primary value propositions for EO by industry to identify prominent use cases Catalogued 110 distinct use cases to explore further Reviewed the use case catalog to identify similar applications across industries Co
307、nsolidated use cases into 26 functional categories that are industry agnostic where possible(e.g.site selection vs renewable energy site selection)Iteratively reviewed and down-selected use categories based on the below criteria:1)climate value,2)business value,3)feasibility,4)scalability,and 5)comm
308、ercial applicabilityAll EO use casesPrioritized use categoriesLiterature scanCategorization by functionPrioritization for study1Early warning2Vulnerability analysis3Consumer experience4Environmental impact monitoring5Precision agri/aquaculture6Post-event analysis 7Route optimization8Supply chain mon
309、itoring9A1 Methodology and approachAmplifying the Global Value of Earth Observation38Amplifying the Global Value of Earth Observation39Next,a literature review captured evidence of economic benefit directly attributable to applications of EO across industries.The following selection criteria were us
310、ed:Evidence of use:Evidence was found demonstrating current use in industry(pilot applications excluded).Quantified benefits:Marginal benefit to the user has been documented and verified(anecdotal evidence excluded).Attribution:Marginal benefit must be directly attributable to EO.The literature revi
311、ew established a series of industry-use pairs(i.e.examples of a specific use of EO in an industry).For each pair,research was undertaken to characterize the nature of the benefits,current and potential future users and primary beneficiaries.This process resulted in an understanding of the mechanisms
312、 by which value created by EO is transmitted through the economy and the identification of global marginal benefit parameters,which represent the incremental value added to the industry that can be attributed to the use of EO(typically a percentage,such as the percentage of additional output or redu
313、ction in losses).Table 11 lists the parameters used to model the value of EO in this study.Marginal benefit parameters for modelled applications of EOTABLE 11Use category#Industry (user)ApplicationDescription of parameter due to EODerived parameterPrecision agriculture1Agriculture(crops)Precision ag
314、riculture for cropping Additional crop output70,71Cotton:5.3%*Corn:4.5%*Wheat:7.5%*Soybeans:0.9%*Other:4.8%*2Agriculture(livestock)Grazing decisions and pasture managementAdditional livestock output72Cattle:13%*Pigs:8%*Dairy:13%*Chickens:8%*3Agriculture(forestry)Precision forestry,harvest optimizati
315、onForestry productivity increase73,74,7520%*4Agriculture(fisheries)Water quality(aquaculture,wild capture)Reduced damage from harmful algal blooms7630.6%Supply chain monitoring5GovernmentEfficient regulationReduction in foregone tax and environmental damage from reduction in illegal activity77,78Gol
316、d mining:10%Logging:20%6Financial servicesResponsible supply chain toolsContribution to tools market value-added7950%7Supply chainProof of origin and sustainable sourcing Price premium for verified proof of origin80,81,82,83,84Palm oil:$30 per tonne Cocoa:$70 per tonne Cotton:12.5%Sugar cane:13%Lith
317、ium:30%Cobalt:30%Rare earths:30%8Financial servicesMarket efficiencyIncreased return on assets under management85,865.24%*Early warning9Global capital stock(cross-industry)Wildfire detectionAvoided losses to capital stock due to early detection87,8816%10AgricultureWildfire detectionAvoided losses in
318、 agriculture89,9016%11Global capital stock(cross-industry)Flood extent mappingAvoided losses to capital stock91$2,266 per hectare*12Global capital stock(cross-industry)Landslide detectionReduced losses from landslide mitigation92,9313.2%Amplifying the Global Value of Earth Observation40Use category#
319、Industry (user)ApplicationDescription of parameter due to EODerived parameterSite selection13MiningResource explorationEfficiency from added exploration accuracy94,957.9%*14ElectricityOptimal location selection for clean energy assetsMarginal benefit to clean energy investment planning9633%15Profess
320、ional services,constructionUrban planningProductivity gain of global construction industry970.03%Post-event analysis16HealthEarthquake response managementReduction in mortality(value of a statistical life)9820%17Government,emergency servicesEarthquake response managementReduced response costs during
321、 a disaster9912%18Government,emergency servicesVolcano eruption response managementReduced costs to affected industries100 12%19InsuranceFlood event mapping(post event)Efficiency gains to insurers during a disaster10190%Vulnerability analysis20Government,public servicesImproved information for road
322、planning,surveying and maintenanceCost savings as a proportion of investment and maintenance spend102,1030.10%*21UtilitiesGas and water pipeline monitoringEfficiency gains from improved gas and water pipeline monitoring104$619 per kilometre of pipeline*22AgricultureValue of weather forecastsValue-ad
323、ded per hectare of seasonal weather forecasts.105,106Livestock:$2.9 per hectare Crops:$30.4 per hectare23Financial services Value of weather forecastsAdditional output from improved productivity107,108 0.08%*24Mining0.14%*25Manufacturing0.08%*26Transport0.04%*27Information and media0.05%*28Utilities
324、0.07%*29Construction0.05%*30Supply chain0.02%*31Tourism0.03%*32Insurance0.08%*33Professional services0.08%*34Health0.12%*Consumer experience35HealthAir quality alert appsReduced morbidity1090.01%Route optimization36TransportShippingFuel saved1102.98%37TransportUrban traffic congestionReduced congest
325、ion costs1111.6%*Adjusted from the original source to include industry weighting,regionalization of the parameter or a combination of sources to capture the most robust benefit parameter suitable for this modelling exercise.How the economic value of EO applications is estimatedFIGURE 19Step 2aStep 2
326、bAdditional benefit from EO(%)Value of the broad industryShare of industry relevant to application(%)Maximum potential annual value of EOGlobal marginal benefit parameterThe global size of the relevant industry,generally using a measure of gross value-addedValue added of EOX=XAmplifying the Global V
327、alue of Earth Observation41The maximum potential annual value of EO was determined by applying the marginal benefit parameter to the global size of the relevant industry,generally using gross value add(GVA).A stylized overview of this process is shown in Figure 19.Each regions potential value was al
328、so split out using its relative GVA.The result of this equation is the maximum potential annual value of EO.It represents the value of an EO application if an entire industry were to adopt it.To estimate the actual potential value of EO,the maximum potential value was scaled to account for adoption
329、dynamics within industries,as explained in step 3 below.Step 3:Parameterize and modelTo project adoption rates,the Bass Model,a specialized tool for assessing technology diffusion,was employed with custom parameters to capture heterogeneity in EO adoption between industries and regions.The Bass Mode
330、l was identified as best suited to project adoption of EO as it is supported by empirical evidence and can be adapted in a variety of circumstances using available data and,as such,is used widely for modelling technology adoption.112Adoption reflects the share of industry using EO,measured by GVA.Th
331、is is a non-standard assumption for Bass model analysis,which typically uses the number of people or businesses using a technology to represent adoption.This assumption was required due to an absence of global data on the number of businesses in each industry.Box 6 shows a stylized version of the mo
332、del output.Amplifying the Global Value of Earth Observation42Linking the adoption model and the valuationBOX 6The adoption model generates a curve that traces out a percentage of adoption over time.This adoption curve is then multiplied against the total potential value that could be realised by usi
333、ng EO in each sector,giving a total potential use value of EO over time.To account for differences in economic growth by industry and region,each regions industry shares were drawn from GTAP and regional-level economic growth forecasts were taken from the International Monetary Fund(IMF).IMF economic growth forecasts account for expected inflation by region.A global survey of industry experts(most