Cabo Verde: Climate Policy Assessment

Cabo Verde faces development challenges from multiple structural factors, including insularity, territorial discontinuity, fragility of ecosystems, and scarcity of natural resources, namely water and arable land. Climate change implications are amplifying these challenges.
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Volume/Issue: Volume 2024 Issue 013
Publication date: April 2024
ISBN: 9798400273841
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Money and Monetary Policy , Taxation - General , International - Economics , Environmental Economics , Public Policy- Environmental Policy , Cabo Verde , Climate , Energy , Water , Adaptation , energy-water-climate nexus , climate change implication , climate policy assessment , Sahel zone , climate policy diagnostic , Climate policy , Climate change , Renewable energy , Tariffs , Global

Summary

Cabo Verde faces development challenges from multiple structural factors, including insularity, territorial discontinuity, fragility of ecosystems, and scarcity of natural resources, namely water and arable land. Climate change implications are amplifying these challenges. As an island extension of the arid Sahel zone, Cabo Verde faces severe water shortage, which the country addresses more and more through energy intensive desalination, using electricity produced largely by thermal power plants, which depend entirely on imported fossil fuels. The resulting high energy prices directly impact the cost of water production. In conjunction with climate change induced aridity, the energy-water-climate nexus presents the core development challenge for the country.