Cabo Verde’s Climate and Development Report highlights the country’s vulnerabilities due to geographic factors and economic reliance on tourism. Despite economic growth and poverty reduction, challenges persist, including high public debt and reliance on imports. The report outlines strategies to build climate resilience, promote green transitions, and enhance the private sector’s ability to adapt to climate shocks, ultimately fostering sustainable development in the region.
Cabo Verde’s geographic positioning makes it susceptible to climate change, exacerbating the nation’s economic vulnerabilities. Despite notable economic growth since the early 1990s and a marked decline in poverty, recent years have witnessed continued volatility that has impeded growth. The tourism sector remains the primary driver of the economy, constituting 25% of GDP, over half of exports, and a significant portion of foreign investment. Additionally, Cabo Verde’s reliance on imports for essential goods such as fuel and food heightens its susceptibility to external shocks.
High remittances and concessional international financing help alleviate Cabo Verde’s external financing challenges, yet they also introduce further vulnerabilities. The country has seen a recovery from COVID-19’s impacts, but ongoing structural challenges remain, including fiscal deficits and public debt that exceed 100% of GDP. The pandemic exposed these vulnerabilities through a drastic drop in tourism and an increase in import costs.
The Country Climate and Development Report (CCDR) offers an in-depth analysis aimed at enhancing climate resilience and promoting sustainable development in Cabo Verde. Chapter 1 estimates the potential economic and social impacts of climate change. Subsequent chapters explore the institutional and legal framework relevant to climate action, propose strategies for achieving climate-resilient development through sustainable management of water-land resources and infrastructure, and outline transitions to greener practices across various sectors, including energy and transportation.
Moreover, the report emphasizes essential actions to bolster private sector resilience and societal protections against climate shocks. It highlights the necessary skills and enhancements required for the health system to support these initiatives. The final chapter consolidates the recommendations, assessing their associated costs, benefits, and overall economic effects.
Cabo Verde, an archipelago characterized by its unique geography, faces significant challenges due to climate change and economic vulnerabilities. The nation has historically relied on tourism as its economic backbone while simultaneously depending on imported goods, particularly fuel and food. While the country has made strides in reducing poverty, recent economic volatility exacerbates its fragility in the face of external shocks, such as those experienced during the COVID-19 pandemic.
In conclusion, Cabo Verde’s path towards climate resilience and sustainable development hinges on addressing its economic vulnerabilities heightened by climate exposure. By leveraging its natural resources responsibly, strengthening institutional frameworks, and transitioning to greener sectors, the country can enhance its overall economic and social stability. The Country Climate and Development Report provides a comprehensive roadmap for accomplishing these objectives while outlining necessary interventions and their anticipated impacts.
Original Source: reliefweb.int
