Economic diversification is the process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets. Traditionally, it has been applied as a strategy to encourage positive economic growth and development. In the context of climate change adaptation, it takes on a new relevance as a strategy to diversify away from vulnerable products, markets, and jobs toward income sources that are low-emission and more climate resilient.

The NWP aims to promote the understanding of economic diversification as well as the development and dissemination of related knowledge resources to assist all Parties, and in particular developing countries, to take informed adaptation action (FCCC/CP/2005/5/Add.1 paragraph 3(b)(v) ).

Work in the area of economic diversification can contribute to efforts by Parties and organizations to:

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 the eradication of poverty.