The World Bank warns that Cabo Verde must take urgent climate adaptation measures or risk a 3.6% GDP contraction by 2050. The tourism sector could suffer significant revenue loss, exacerbating poverty. The report suggests transitioning to sustainable tourism models and outlines the need for $140 million annually to address climate challenges, alongside a new climate law to streamline regulatory measures.
The World Bank has issued a critical warning regarding Cabo Verde’s need for urgent climate adaptation to prevent a significant decline in its economy. Indira Campos, the World Bank representative in Cabo Verde, stated that without immediate actions, the nation’s gross domestic product could decrease by 3.6% by 2050. The report also highlights that poverty could rise by 6.4%, affecting one in five citizens due to climate impacts.
The tourism industry is anticipated to suffer the most, with a projected 10% drop in revenue from this sector, which is vital to Cabo Verde’s economy. The World Bank advocates for a shift away from the traditional “sun-and-sea” tourism model towards more sustainable alternatives, such as ecotourism, cultural tourism, and sport fishing, thereby diversifying the economic offerings primarily concentrated on the islands of Sal and Boa Vista.
Cabo Verde faces several environmental threats, including prolonged droughts, desertification, and extreme weather events that lead to flash floods, especially in urban areas. Issues like rising sea levels, coastal erosion, and the deterioration of biodiversity particularly endanger beaches and coastal ecosystems, essential for the sustainability of tourism in the region.
The Country Climate and Development Report (CCDR) serves as a crucial public policy tool, indicating that Cabo Verde has the potential to convert these challenges into growth opportunities. It emphasizes the need for investments in renewable energy and resilient agricultural practices to combat climate change and achieve development goals, with an estimated requirement of $140 million annually, approximately 6% of GDP over the next decade.
Moreover, innovative partnerships and the establishment of a conducive business environment are necessary to attract private investments. Campos emphasized that proactive climate actions might contribute an additional 0.4 to 1.0 percentage point to the GDP by 2050 while enhancing food security, social protection, and quality employment.
In conjunction with these efforts, Cabo Verde’s Minister of Agriculture, Gilberto Silva, revealed plans to introduce a climate law focused on enhancing the regulatory framework surrounding climate resilience. He acknowledged the need for increased resources and innovative funding mechanisms to stimulate investment, citing a public debt exchange agreement with Portugal as an example.
The World Bank’s CCDRs are designed to engage governments, the private sector, and civil society in climate discussions, providing a framework for high-impact actions that could draw funding. Portugal has committed to supporting Cabo Verde’s climate fund, contributing €12 million for renewable energy projects this year.
Furthermore, the International Monetary Fund is allocating $31.7 million under its Resilience and Sustainability Facility (RSF) to assist Cabo Verde in addressing climate challenges. Prime Minister Ulisses Correia e Silva is advocating for new funding strategies tailored for small island states, including the development of a Multidimensional Vulnerability Index to facilitate access to resources that reflect the unique realities of Small Island Developing States (SIDS).
Cabo Verde is facing significant threats from climate change that could severely impact its economic stability and increase poverty levels. The World Bank has outlined the urgent need for adaptive measures to avoid a contraction in GDP and mitigate negative impacts primarily on the tourism sector. This situation necessitates a transition to sustainable economic models and the introduction of regulatory frameworks that bolster climate resilience. Collaborative efforts among government, private sectors, and international partners are vital to capturing investment opportunities and strengthening climate action in the archipelago.
In summary, Cabo Verde must urgently adapt to climate change to safeguard its economy from projected declines in GDP and rising poverty rates. The tourism sector, central to the nation’s economy, is particularly vulnerable, necessitating a diversification towards sustainable practices. Government initiatives, international support, and innovative funding mechanisms will be essential to fostering a resilient economic landscape and ensuring the country’s climate resilience priorities are met.
Original Source: clubofmozambique.com
