Climate change already poses one of the most significant systemic risks to the global economy. With the global average surface temperature rising by 1.1 degrees Celsius (°C) compared to the preindustrial average, the frequency and severity of climate shocks have intensified across the world (Figure 1), and these extreme weather events are projected to worsen as the global annual mean temperatures increase by as much as 4°C over the next century (IPCC, 2007; IPCC, 2014; IPCC, 2021; Stern, 2007).2 The socioeconomic consequences of climate change will be felt across the world, but potential vulnerability to weather anomalies depends on the size and composition of economies, the resilience of institutions and physical infrastructure, and the capacity for climate change mitigation and adaption.