This report highlights pathways to economic diversification in commodity-dependent developing countries in an environment where decarbonization of the global economy has become the overarching objective of climate change mitigation. The report argues that inclusive and green diversification is possible if the right to development of commodity-dependent developing countries the need to address climate change and existing inequalities are addressed in a common and balanced way. In this regard green industrial policy can help to promote inclusive structural transformation in commodity-dependent developing countries. Furthermore strong political commitment both in commodity-dependent developing countries and their development partners is needed to achieve just diversification pathways.

This report explores key aspects of the two-way relationship between commodities and climate change discusses the concept of natural resource conversion and explores its application to renewable and non-renewable resources. In addition it analyses the challenges and opportunities posed by climate change and the Paris Agreement to commodity-dependent developing countries and discusses commodity-sector strategies in a changing climate. The report concludes with policy recommendations.

Smallholder farmers constitute the largest contingent of the poor and yet they produce more than 80 per cent of the world's food in value terms. Though there are marked differences by country and region in the average size of small farms it is estimated that more than 90 per cent of the 570 million farms worldwide are managed by an individual or a family and that mostly they rely on family labour. Estimates further show that about 2.5 billion people depend on agricultural production systems for their livelihoods. The report highlights the range of constraints that smallholder farmers face in developing economies and specifically provides new analyses of the state of their integration into the global economy. It underlines that smallholder farmers are both victims of climate change and key actors in the achievement of a more inclusive and environmentally friendly development path. The report argues for specific measures at the national regional and global levels including in international trade and investment agreements for unleashing the full business potential of smallholders. It showcases good policy practices including the role of strong political leadership in reversing the policy neglect that small farmers have suffered from. "Business as usual" is not an option if the 2030 Agenda for Sustainable Development is to be achieved. In light of this the report calls for greater resources to be devoted to supporting smallholders. Finally the report also urges for the establishment of an accountability mechanism for monitoring progress on key commitments related to smallholders on trade investment finance and technology.