Climate risk is becoming a structural element for Italian competitiveness, with direct climate change damage to the country's infrastructure potentially reaching €5 billion per year by 2050. Depending on the intensity of the economic impacts, a progressive reduction in GDP of between 1.6% and 6% could occur by 2050. However, only 14% of Italian SMEs have taken precautions to ensure business continuity in the case of extreme events, and only 10% have implemented adaptation measures aimed at infrastructure and physical assets. These are some of the key findings from consulting firm Deloitte's report "Climate Risk in Italy: From Scenarios to Intervention Proposals", which examines the impact of climate risk on the Italian economic and financial context, as well as the maturity of small and medium-sized enterprises in addressing its challenges. The study was created in partnership with researchers from the Polytechnic University of Milan, Ca' Foscari University of Venice, the Climate team of the Florence School of Regulation (European University Institute), and the Ipsos-Doxa research institute. This economic loss tends to accumulate in a nonlinear fashion and gradually accelerates over time. In particular, climate risk is transferred from the actual economy of the country to the financial sector through a variety of mechanisms, including the compression of fiscal space, increased public debt, and refinancing costs.