Cabo Verde, an archipelago off West Africa, faces climate challenges. The World Bank’s recent report marks the urgent need for investment to tackle these issues. Released on January 15, 2025, the Country Climate and Development Report (CCDR) estimates that Cabo Verde will require $842 million from 2024 to 2030. This translates to an annual investment of $140 million. The stakes are high as the nation contends with extreme weather events and economic vulnerabilities.
Vulnerability to Climate Events
Cabo Verde is classified as a small island developing state (SIDS). It is particularly susceptible to extreme climate phenomena such as floods, droughts, and tropical storms. The islands face additional threats from coastal erosion and rising sea levels. Rapid rural-urban migration and land degradation worsen these vulnerabilities. The economic reliance on tourism and imported goods further complicates the situation.
Economic Implications of Climate Change
The report warns of potential GDP losses of up to 3.6 per cent by 2050 if adaptation measures are not implemented. Cabo Verde’s economy relies heavily on tourism, which contributes to a quarter of its GDP. The high public debt and dependence on imported food exacerbate the economic challenges posed by climate change.
Strategies for Climate Resilience
To enhance climate resilience, the report recommends an integrated approach to water and land management. Improving irrigation systems and diversifying agriculture are crucial for food security. The introduction of drought-resistant crops will also be beneficial.
Utilising Blue Natural Capital
Cabo Verde’s blue natural capital is vital for national development. The tourism sector, accounting for 45 per cent of formal jobs, must be sustainably managed. Cross-sector coordination is essential for effectively using marine resources.
Infrastructure Investment Needs
The report marks that severe flooding could impact half of the road networks on five of the ten islands. Rising sea levels threaten critical infrastructure, including hospitals and schools. Annual average losses from climate-related risks are estimated at nearly 1 per cent of GDP, equating to $18.2 million.
Decarbonisation and Renewable Energy Goals
Despite contributing less than 0.002 per cent to global emissions, Cabo Verde aims to decarbonise its energy sector. The Nationally Determined Contribution (NDC) targets 100 per cent renewable energy by 2040. This requires public investment in grid upgrades and private capital attraction through financial reforms.
Economic Benefits of Climate Action
The report asserts that climate action could drive economic growth. The proposed investment of $842 million would yield benefits such as increased agricultural productivity and reduced fuel imports. Effective climate strategies can also lower air pollution.
Key Enablers for Development
The report identifies several key enablers for climate resilience and low-carbon development. These include macroeconomic stability, fiscal policy, finance, and institutional frameworks. Strengthening these areas will support sustainable growth.
Questions for UPSC:
- Critically discuss the implications of climate change on small island developing states like Cabo Verde.
- Examine the role of tourism in Cabo Verde’s economy and its vulnerability to climate change.
- What is the significance of integrated water management in enhancing food security? How can it be implemented in Cabo Verde?
- Analyse the potential economic benefits of transitioning to renewable energy in Cabo Verde. What challenges might arise during this transition?
Answer Hints:
1. Critically discuss the implications of climate change on small island developing states like Cabo Verde.
- Small island developing states (SIDS) are highly vulnerable to extreme climate events such as floods, droughts, and rising sea levels.
- Climate change threatens food security and economic stability, with potential GDP losses projected at 3.6% by 2050 for Cabo Verde.
- Structural issues like rapid urban migration and land degradation further compound vulnerabilities.
- Dependence on tourism and imported goods makes SIDS economically fragile in the face of climate challenges.
- Effective adaptation measures are critical to mitigate these risks and enhance resilience.
2. Examine the role of tourism in Cabo Verde’s economy and its vulnerability to climate change.
- Tourism accounts for 25% of Cabo Verde’s GDP and 45% of formal sector jobs, making it a key economic driver.
- The sector is highly susceptible to climate impacts, including extreme weather and rising sea levels affecting infrastructure.
- Tourism relies on natural resources, which are threatened by climate change, impacting sustainability.
- Economic reliance on tourism creates vulnerabilities, as downturns from climate events can lead to job losses.
- Cross-sector coordination is needed to ensure sustainable tourism practices that can withstand climate challenges.
3. What is the significance of integrated water management in enhancing food security? How can it be implemented in Cabo Verde?
- Integrated water management enhances food security by improving irrigation efficiency and water resource allocation.
- It supports diversification in agriculture, allowing for the cultivation of drought-resistant crops and horticulture.
- Effective water management helps mitigate the impacts of climate change on agricultural productivity.
- Implementation can involve investing in irrigation infrastructure and training farmers in sustainable practices.
- Collaboration between government, local communities, and stakeholders is essential for successful integration.
4. Analyse the potential economic benefits of transitioning to renewable energy in Cabo Verde. What challenges might arise during this transition?
- Transitioning to renewable energy could reduce reliance on imported fuels, lowering energy costs and enhancing energy security.
- It has the potential to create jobs in the renewable sector and boost local economic development.
- Renewable energy can help mitigate climate risks, improving resilience in the face of extreme weather events.
- Challenges include the need for upfront investment, technological barriers, and attracting private capital.
- Infrastructure upgrades and regulatory frameworks need to be addressed to facilitate a smooth transition to renewables.
