Sectors such as tourism, agriculture, fisheries, forestry and energy production are all sensitive to the adverse effects of climate change. The negative impacts of climate change on these sectors are of concern to all countries, especially for those whose economies are primarily driven by climate sensitive sectors. In this context it is imperative for all countries to diversify their economies either by expanding climate sensitive sectors or by promoting adaptation measures that increase resilience within the sector. Economic diversification is one component of economic resilience and is also a key component of sustainable development as it will assist countries in reducing poverty and generate employment in the long run.
In order to eradicate extreme poverty, there needs to be an economic transformation towards sustainable development. This transformation needs to be supported institutions, incentives and investments and is an essential factor in adapting to changing conditions.
UNDP’s support in pursuing economic diversification strategies have been employed in a wide range of sectors. Tourism, agriculture and energy are a few examples. These efforts are about shifting strategies to respond to emerging climate changes and to develop systems that are resilient yet sufficiently flexible that they enable people to respond to change.