The World Bank Group’s Climate and Country Development Report (CCDR) was launched in Praia on January 15, 2025. In this document, based on economic models for key economic sectors for the country’s development, such as tourism, energy, water and others, it is shown that the damage caused to the Gross Domestic Product (GDP) is greater than the investment needed to increase its resilience.

In the World Bank’s press release on the subject, it can be read that the report “provides a roadmap for aligning Cape Verde’s development aspirations with climate action, investing in measures that mitigate climate risks while unlocking new opportunities for sustainable and inclusive growth. The report emphasizes the need for an integrated approach to address Cape Verde’s vulnerabilities. Immediate priorities include:

• Promoting integrated land and water management: Increasing food security through efficient irrigation, drought-resistant crops and landscape restoration
  
• Promoting a blue economy resilient to climate change: Diversifying the tourism sector, improving sustainable fisheries management and protecting coastal ecosystems
  
• Modernize infrastructure systems: Integrate climate risks into urban and transport planning to safeguard critical infrastructure and improve connectivity between islands
  
• Accelerate the low-carbon energy transition: Expand renewable energy capacity and improve grid efficiency to reduce dependence on imported fossil fuels and lower energy costs.
  
• Increase social resilience: Strengthen social protection systems and invest in education and skills development to support vulnerable groups and boost new job opportunities in green sectors.

The CCDR estimates that ambitious climate action would require investments of around 140 million US dollars a year, from 2024 to 2030 and beyond. But the economic and social benefits would outweigh these costs. Mobilizing finance on this scale will require a strong partnership with the private sector and international stakeholders, and the use of innovative financial instruments.

Source: CCDR, World Bank Group, 2025

By 2050, climate action could result in a 2.5% increase in GDP compared to the baseline scenario.

Source: CCDR, World Bank Group, 2025

According to Indira Campos, World Bank Group Resident Representative for Cape Verde: “Climate action is not just a necessity; it is an opportunity for Cape Verde to chart a more sustainable and prosperous future. With strong governance, innovative financing and community involvement, Cape Verde can lead the way to resilience and low-carbon development.”