The World Bank warns that Cabo Verde’s GDP may decline by 3.6% by 2050 without urgent climate adaptation. Poverty may rise by 6.4%, with tourism expected to suffer a 10% revenue drop. The report suggests diversifying tourism and investing in renewable energy to combat climate threats, requiring $140 million annually for effective adaptation and development.
The World Bank highlighted that Cabo Verde must urgently adapt to climate change to prevent a contraction in its gross domestic product over the next 25 years. Indira Campos, the World Bank’s representative in Cabo Verde, indicated that without immediate action, GDP could fall by 3.6% by 2050.
The alarming forecasts predict a 6.4% increase in poverty, leaving one out of every five citizens vulnerable to climate change’s adverse impacts. A significant portion of this economic harm is expected to stem from the tourism industry, with potential revenue dropping by 10% from its current level.
The report advocates for diversifying Cabo Verde’s tourism model, progressing from traditional sun-and-sea tourism to eco-tourism and cultural tourism, which are less affected by climate threats. Current challenges include extreme droughts, desertification, and unpredictable rainfall, which endanger urban areas and tourism.
Rising sea levels and coastal erosion threaten biodiversity and ecosystems, particularly in beach areas, undermining the sustainability of Cabo Verde’s tourism. The Country Climate and Development Report (CCDR) serves as a crucial policy tool, with Campos asserting that Cabo Verde can convert challenges into prospects, given its strong commitment to energy transition goals.
The report outlines a strategy needing $140 million annually—approximately 6% of GDP—over the next decade to address climate and development pressures. Campos emphasized that innovative partnerships and a supportive business climate are vital to draw in private investments.
The climate initiatives could potentially enhance GDP by 0.4% to 1.0% by 2050, while also improving food security, social welfare, and job quality. Agriculture Minister Gilberto Silva announced the forthcoming climate law aimed at strengthening regulatory frameworks for climate concerns.
Silva reiterated the necessity for increased resources for investments and mentioned innovative approaches like debt swaps for climate funding. The CCDRs produced by the World Bank aid in aligning government action with private sector engagement on climate issues.
Portugal has already pledged €12 million to Cabo Verde’s climate fund in 2023, focusing on renewable energy projects. Furthermore, the International Monetary Fund is offering $31.7 million to support the nation through its Resilience and Sustainability Facility.
Cabo Verde is facing escalating threats due to climate change, demanding immediate and strategic adaptation efforts. The World Bank’s analysis suggests that without intervention, there will be significant adverse effects on the nation’s economy and social framework. The tourism industry, vital to Cabo Verde’s economy, stands to be severely impacted, prompting calls for a diversification of the tourism sector to mitigate these risks. The region’s unique vulnerabilities necessitate tailored financial solutions and robust policymaking to combat climate-induced challenges effectively.
In summary, the World Bank warns that Cabo Verde’s economy could shrink due to climate change unless decisive adaptation measures are implemented. The upcoming climate law and strategic investments in renewable energy and eco-friendly tourism are crucial for securing the nation’s economic stability and sustainability. Collaborative efforts between the government and private sector, alongside international financial support, are essential for navigating these climate challenges and fostering resilience.
Original Source: clubofmozambique.com
