This podcast highlights how both the impacts of climate change and our responses to climate change affect climate change risk of structural economic transformation.
examines Structural Economic Transformation (SET) in a world impacted by climate change, asserting its continued importance for poverty reduction and resilience. It highlights how climate change necessitates adaptations in development strategies, from diversifying production away from vulnerable sectors to capitalising on green economy opportunities, which are also influenced by geopolitics. The authors investigate how climate change and global responses affect national SET efforts and cross-border economic transformation, using case studies from Ethiopia, Jamaica, Kenya, Bangladesh, and Kazakhstan to illustrate diverse national experiences. The paper identifies a "green squeeze" through trade and finance policies by major industrial powers, but also proposes a "green ease" through reformed trade measures, R&D in green technologies, and supportive financial systems. Ultimately, it argues that advancing SET, alongside climate adaptation, is critical for all countries, with existing development initiatives now also serving to build climate resilience and competitiveness in a low-carbon economy. It is based on work from ODI Global and the Climate Risk Lab: Securing structural economic transformation in a climate-changed world. ODI Global Working paper. London: ODI Global, www.odi.org/publications/securing-structural-economic-transformation-in-a-climate-changed-world
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