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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.