Ambitious Climate Action will Reap Large Dividends for Cabo Verde

Building resilience and accelerating a low-carbon transition are central to Cabo Verde’s sustainable development strategy, according to the newly launched Country Climate and Development Report (CCDR).

As a Small Island Developing State (SIDS) in the Atlantic Ocean, Cabo Verde is particularly vulnerable to climate change and natural disasters, including droughts, floods, ocean warming, and sea level rise. These vulnerabilities are further compounded by economic challenges, such as heavy reliance on tourism, imported fuel and goods that account for 80% of domestic food consumption, as well as high public debt. Climate change threatens to exacerbate these issues, with projections showing potential GDP losses of up to 3.6% by 2050 without effective adaptation measures.

The CCDR provides a roadmap to align Cabo Verde’s development aspirations with climate action by investing in measures that mitigate climate risks while also unlocking new opportunities for sustainable and inclusive growth. The report emphasizes the need for an integrated approach to address Cabo Verde’s vulnerabilities. Immediate priorities include:

• Promoting integrated land and water management: Increasing food security through efficient irrigation, drought-resistant crops, and landscape restoration.
• Fostering a climate-resilient blue economy: Diversifying the tourism sector, improving sustainable fisheries management, and protecting coastal ecosystems.
• Upgrading infrastructure systems: Integrating climate risks into urban and transport planning to safeguard critical infrastructure and improve inter-island connectivity.
• Accelerating the low-carbon energy transition: Expanding renewable energy capacity and improving grid efficiency to reduce dependency on imported fossil fuels and lower energy costs.
• Enhancing social resilience: Strengthening social protection systems and investing in education and skills development to support vulnerable groups and leverage new job opportunities in green sectors.

The CCDR estimates that ambitious climate action would require investments of approximately $140 million annually from 2024 to 2030 and beyond, but the economic and social benefits would outweigh these costs. Mobilizing finance at this scale will require strong partnership with the private sector and international stakeholders and leveraging innovative financial instruments. By 2050, climate action could result in a 2.5% increase in GDP compared to a baseline scenario.

“Climate action is not just a necessity; it’s an opportunity for Cabo Verde to chart a more sustainable and prosperous future. With strong governance, innovative financing, and community engagement, Cabo Verde can lead the way in resilience and low-carbon development,” said Indira Campos, World Bank Group Resident Representative for Cabo Verde.

For more information, read and download the full report here.

Distributed by APO Group on behalf of The World Bank Group.