Cabo Verde, a small island nation in the Atlantic Ocean, is at a critical crossroads while facing climate change. The Cabo Verde Country Climate and Development Report (CCDR) reveals a dual reality on the one hand, stark vulnerabilities, and on the other, opportunities for innovation and sustainability. The report charts a bold and necessary course for the country to not only survive but thrive in the face of transformation.
A Growing Threat
Cabo Verde’s geography makes it uniquely vulnerable. Rising sea levels threaten its stunning coastlines, upon which much of the nation’s tourism industry depends. As an absolute water scarce country, more frequent and intense droughts and saline intrusion jeopardize its agriculture, a key source of income and food security for rural communities. Warming oceans and overfishing threaten the fishery sector, which accounted for 72% of exports in 2021. At the same time, its dependence on imported fossil fuels and food leaves it exposed to fluctuating international markets. These vulnerabilities paint a sobering picture: without action, climate change could shrink the country’s GDP by up to 3.6% in 2050. Tourism revenues alone could fall by as much as 10%, striking a major blow to the backbone of the economy.
Yet, the CCDR argues that, with decisive action, the nation can turn this crisis into an opportunity to reimagine its development pathway.
A Vision for Transformation
The message of the CCDR is clear: resilience and sustainability must define Cabo Verde’s future. The country has set an ambitious goal to achieve 100% renewable energy penetration by 2040, a shift that will decrease dependence on expensive imported fuels, reducing the cost of electricity and generating savings on fuel imports for $1.8 billion (discounted) between now and 2050. Investments in solar, wind, and other renewables offer multiple dividends, enhancing energy security, unlocking opportunities for e-mobility, low-carbon desalination and becoming a hub for digital services, while creating jobs in emerging green sectors.
Energy is only part of the solution. Tourism must evolve to become more resilient and diversified. The CCDR stresses the importance of moving beyond "sun-and-beach" tourism by investing in eco-tourism, creative and cultural tourism, yachting and sport fishing, which are less vulnerable to climate risks and offer opportunities to expand beyond current geographic concentration in Sal and Boa Vista. This diversification is key to maintaining Cabo Verde’s competitiveness in the global market while protecting its fragile ecosystems.
The blue economy also holds immense potential. Cabo Verde can leverage its vast ocean resources through sustainable fisheries, aquaculture, and coastal protection measures. An integrated water and land management approach will be crucial to strengthening food security and increase food production, to reduce food imports, which accounts for 80% of domestic food consumption. Investments in low-carbon desalination technologies can help address the pressing issue of water scarcity, ensuring that communities, farmers and industries alike have access to this critical resource.
Resilient infrastructure is another cornerstone of the strategy. Roads, ports, airports and urban infrastructure must be planned and upgraded where needed to withstand the increasing frequency and magnitude of extreme events. By embedding climate risk into infrastructure planning and operations, Cabo Verde can ensure that its economy and communities remain connected and secure, even in the face of climate shocks. Increase and assure inter-island connectivity will be crucial to provide services to its sparse population and foster logistics and value chains.
Mobilizing Resources for Climate Action
Realizing this vision requires substantial resources. The CCDR estimates that Cabo Verde will need to invest approximately $140 million annually—about 6% of its GDP—through 2030 to address its climate and development challenges. This level of investment demands a coordinated effort between the public and private sectors, as well as support from the international community.
Innovative financing mechanisms will play a critical role. Cabo Verde can leverage carbon markets, and concessional financing to attract the necessary funds. Debt for development swaps is promising and when borrowing constraints ease, Cabo Verde could consider issuing sustainability-linked bonds. Public-private partnerships will also be key, particularly in sectors like energy, waste management, and transport. However, finance alone is not enough. Strong governance and an enabling legal framework are essential to ensure that resources are used effectively and that climate goals are integrated into national planning. The country has already taken significant steps in this direction with the adoption of its 2024 Climate Change Law, which prioritizes adaptation and resilience across all sectors.
A Future Built on Opportunity and A Call for Collective Action
While the challenges are immense, the CCDR highlights that prompt and ambitious climate action can reap large dividends for Cabo Verde. By investing in green energy, sustainable tourism, integrated water and land management and the blue economy, Cabo Verde can offset the negative effects of climate change and stimulate growth and innovation. These efforts will also improve the nation’s external resilience by reducing its dependence on fuel and food imports and create new job opportunities.
The report also emphasizes the importance of inclusivity. Climate action must leave no one behind, particularly vulnerable groups like youth, women and rural communities. Social protection programs, education, and skills training can ensure that all Cabo Verdeans benefit from the transition.
The Cabo Verde CCDR is not just a report—it is a call to action. It urges the government, private sector, civil society, and international development partners to join forces in building a more resilient and sustainable future. The stakes are high, but so are the rewards. With the right investments and policies, Cabo Verde can transform its vulnerabilities into strengths and become a global model for sustainability.
This is not just about adapting to a changing world. It is about shaping a future where Cabo Verde’s people and environment thrive together. In doing so, the nation can inspire other small island states to follow its lead, proving that even in the face of adversity, bold action and collective vision can turn challenges into opportunities.