This paper argues that climate change poses significant economic risks to businesses, including physical, business, and investment uncertainties, but that climate action also presents substantial investment opportunities. The author emphasize New Zealand's vulnerability to climate change impacts despite its relatively small contribution to global emissions, arguing that a proactive approach is not only environmentally responsible but also economically beneficial. 

The paper explores the financial risks associated with climate change inaction, such as disruptions to supply chains and increased costs from extreme weather events, while highlighting the potential for innovation and economic growth through investments in clean technologies and sustainable practices. The author calls for policy measures that reduce barriers to investment and incentivise private investment in climate solutions.

Key findings

• The global projected investment requirement for climate action is around US$6.3–$6.7 trillion per year by 2030, from a combination of private and public sources.
• Investors bear the risks, but the benefits are shared; as a consequence, investors may be reluctant to act.
• New Zealand's business environment generally supports investment, with strong institutions, low corruption, and a relatively easy process for starting businesses. However, specific challenges exist that inhibit climate action investment.
• Small businesses in New Zealand face particular difficulties in navigating climate-related risks and opportunities due to limited resources and capacity.

Key recommendations

• The government should establish enduring policies that provide clear signals and incentives for businesses to invest in a low-carbon economy.
• Businesses should take proactive steps to assess climate opportunities, integrate climate change leadership into their governance structures, and communicate their climate action strategies to stakeholders. 
• New Zealand should act to achieve its commitments under the Paris Agreement and encourage other countries to take action as well.
• Businesses, households, and governments in New Zealand must recognise that some level of climate change is more
  likely than not, and consider the risks and opportunities associated with inaction as well as those associated with investment.