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This report highlights that climate change will compound Cabo Verde’s economic and climate vulnerabilities. The country has experienced robust economic growth since the early 1990s and achieved a substantial reduction in poverty, but growth has been volatile and has slowed in recent years. The COVID-19 pandemic put Cabo Verde's external vulnerabilities on display, causing a steep decline in tourism revenue and a surge in the food and fuel import bill before the economy returned to pre-pandemic conditions in 2023. This Country Climate and Development Report (CCDR) analyzes how Cabo Verde can build climate resilience and stimulate low carbon development, while identifying key enablers.

The CCDR finds that climate action would more than offset the negative effects of climate change on GDP and boost growth with benefits primarily coming from higher tourism, higher agricultural output, and high aggregate investment. The CCDR proposes policy reforms and investments in several prime sectors to realize this future. In the context of current fiscal constraints, ambitious and cross-cutting climate action policies will need to be complemented by a multifaceted public and private financing strategy. The CCDR also finds that Cabo Verde’s private sector has a central role to play in mobilizing climate finance.