Climate change is the defining challenge of our time with complex and evolving dynamics.2 The global annual average surface temperature has already increased by about 1.1 degrees Celsius (°C) compared with the preindustrial average during 1850–1900, amplifying the frequency and severity of climate shocks across the world. These extreme weather events are projected to intensify over the next century, as the global mean temperature increase by as much as 4°C over the next century (IPCC 2007, 2014, 2019; 2021; Stern 2007). The economic consequences of climate change—ranging from financial and fiscal stability to long-run growth prospects and income distribution—will be felt across the world, but the extent of potential vulnerability depends on the size and composition of economies, the resilience of institutions and physical infrastructure, and the capacity for mitigation and adaption to climate change.