To tackle the challenges of climate change, more investment needs to be mobilised in low-carbon technologies and capital assets. But what implications are there for firms as they diversify into the green marketplace? This report examines whether environmental policy and economic performance are complementary or contradictory, how environmental innovation affects the bottom line and how financial markets respond to more stringent environmental regulations. It also provides important insights into the potential role of climate policy within COVID-19 stimulus packages, linking COVID crisis economic support for firms to policies ensuring a green recovery.