Interactions between commodities and climate change

Commodity sectors affect the climate, and are also highly vulnerable to it. The prospection, production, processing, consumption and disposal of fuels, agricultural raw materials, food, and minerals, ores and metals are among the main sources of anthropogenic GHG emissions (see figure 1.2). On the other hand, climate change causes major shocks to commodity sectors, posing dire social and economic risks to people and countries dependent on commodities. This chapter argues that climate change and global efforts to limit its effects have created a new environment that calls for changing the ways in which natural resources are managed. Indeed, considering that, so far, development in CDDCs has been a process of natural resource conversion, measures adopted for climate change mitigation and adaptation will affect the demand, supply and relative prices of some key commodities, which will have an impact on the economies that depend on them. Owing to the strong association between climate change and commodities, CDDCs will need to adapt their economies to this reality.

Sustainable Development Goals:

No Poverty

Decent Work and Economic Growth

Climate Action