Economic diversification is generally taken as the process in which a growing range of economic outputs is produced. It can also refer to the diversification of markets for exports or the diversification of income sources away from domestic economic activities (i.e. income from overseas investment).

Economic diversification in its standard usage, either in terms of the diversity of economic activities or markets, is a significant issue for many developing countries, as their economies are generally characterized by the lack of it. They have traditionally relied heavily on the production of primary commodities that are predominantly vulnerable to climate variability and change.

Activities and deliverables under the second phase (2008–2010) include:

• Submissions (availale in document FCCC/SBSTA/2009/MISC.6) by Parties and relevant organizations on additional information on examples of measures, methodologies and tools on increasing economic resilience to climate change and reducing reliance on vulnerable economic sectors, including through economic diversification (by 20 March 2009).
• Technical workshop on increasing economic resilience to climate change and reducing reliance on vulnerable economic sectors, including through economic diversification (requested by the SBSTA before its thirtieth session, June 2009)

Activities and deliverables under the first phase (up to June 2008) included:

• Submissions by Parties and relevant organizations
• Synthesis report based on the information contained in the submissions

1. Exchange experiences and opportunities on the development and dissemination of measures, methodologies and tools aimed at increasing economic resilience;
2. Exchange experiences and lessons learned in economic diversification, including ways to develop institutional capacity, and improve understanding on how economic diversification can be integrated into sustainable development plans, especially those that promote sustainable economic growth and eradication of poverty.