6 May 2016: In preparation for the 44th sessions of the Subsidiary Body for Implementation (SBI 44) and of the Subsidiary Body for Scientific and Technological Advice (SBSTA 44), the UNFCCC Secretariat has released a technical paper, titled ‘The concept of economic diversification in the context of response measures’ (FCCC/TP/2016/3). The paper provides an overview of the work undertaken under the Convention on economic diversification initiatives in the context of the impacts of the implementation of response measures, general concepts of economic diversification and guidance on how to approach economic diversification at the national level.

Issued in response to the mandate from the Conference of the Parties (COP) to prepare technical materials to assist developing countries in their economic diversification initiatives, the technical paper draws upon, among others: research publications; technical inputs provided by experts and practitioners during discussions under the forum on the impact of the implementation of response measures; relevant submissions by Parties; as well as the work of the forum.

The paper consists of five main sections. The first section provides background information, including on the mandate; objective, scope and approach of the paper; its structure; and possible action by the Subsidiary Bodies (SBs). The second section contains an overview of work undertaken on economic diversification under the Convention. The third section addresses economic diversification, including its objective, drivers, and tools and methods for its measurement. The fourth section is dedicated to a discussion of economic diversification as a means to address the adverse impacts of response measures, and focuses on: sectoral vulnerability and economic diversification strategy; and policy options for accelerating economic diversification. The way forward is presented in the fifth section, which outlines key messages and possible elements of the work programme of the improved forum on the impact of the implementation of response measures.

Economic diversification is a strategy to transform the economy from using a single source to multiple sources of income spread over primary, secondary and tertiary sectors, involving large sections of the population with the objective of improving economic performance for achieving sustainable growth.

At SB 44, Parties are expected to discuss the modalities, work programme and the terms of reference for the ad-hoc technical expert groups in order to start the work of the forum on the impact of the implementation of response measures as soon as possible. Parties are also expected to initiate the discussion on “the modalities, work programme and functions of the forum on the impact of the implementation of response measures to address the effects of the implementation of response measures under the Agreement by enhancing cooperation amongst Parties on understanding the impacts of mitigation actions under the Agreement and the exchange of information, experiences, and best practices amongst Parties to raise their resilience to these impacts,” as mandated by the decision adopting the Paris Agreement. [Publication: The Concept of Economic Diversification in the Context of Response Measures] [Decision Adopting the Paris Agreement] [SBI 44 Provisional Annotated Agenda] [SBSTA 44 Provisional Annotated Agenda] [UNFCCC Response Measures Webpage] [IISD RS Story on Guidance to Assist Developing Country Parties to Assess the Impact of the Implementation of Response Measures]