Mauritius Country Climate and Development Report (CCDR)

Mauritius stands at a pivotal moment. Once a low-income sugar producer, the country has transformed into an upper-middle-income economy with a diversified base. Yet, its state-led development model has reached its limits, and climate change poses mounting risks to its people, economy, and environment. The Mauritius Country Climate and Development Report (CCDR) offers a roadmap for how the country can achieve sustained development while responding to climate change. Challenges can be transformed into opportunities, engines of job creation and inclusive growth. Decisive action to address the risks can transform the challenges into engines of job creation and inclusive growth. The report notes that by investing in renewable energy and the sustainable use of ocean resources for economic growth and improved livelihoods, while preserving the health of the ocean ecosystems, Mauritius could generate up to 32,000 jobs by 2030.

Mauritius is one of Africa's most successful development stories. But as a Small Island Developing State (SIDS), it faces outsized climate risks, from rising sea levels and heatwaves to flash floods and cyclones. These threats jeopardize key job sectors like tourism and fisheries, and expose one-third of the population living in coastal areas.

The CCDR provides a comprehensive analysis of Mauritius' climate vulnerabilities and development challenges, and outlines how climate action can unlock new growth pathways, create jobs, and build resilience.

Key Findings

• Climate change is a cross-cutting risk: It amplifies natural disasters, disrupts agriculture, and threatens biodiversity and infrastructure.
• Mauritius faces high adaptation costs due to its high exposure to sudden and slow onset climate hazards, despite contributing only 0.01% to global emissions. Water scarcity is a central challenge, with competing demands from tourism, agriculture, and households.
• Climate-smart investments can yield large economic dividends: Adaptation and low-carbon measures offer co-benefits for growth, jobs, and energy security.

Conceptual framework for development and climate change actions in Mauritius. Source: World Bank

Opportunities for Action

The CCDR identifies three interlinked priorities to guide Mauritius toward resilient development:

1. Reinforce macro-fiscal and institutional foundations

• Implement growth-sensitive fiscal reforms and rebuild fiscal buffers.
• Strengthen climate governance and coordination.
• Close the green skills gap through targeted education and labor market programs.
• Mobilize private climate finance through roadmaps and de-risking strategies.

2. Reorientate key sectors

• Promote sustainable tourism by diversifying inland offerings and enforcing climate-resilient licensing.
• Enhance the blue economy through marine spatial planning and legal reforms to support sustainable fishing and ocean conservation actions.
• Accelerate the renewable energy transition with updated electricity plans and tariff reforms.

3. Reduce exposure and vulnerability

• Invest in coastal protection, climate-proof Port Louis, and upgrade public transport.
• Strengthen disaster risk reduction systems and expand inclusive social protection.
• Reform water management and pricing to ensure long-term sustainability.

The CCDR outlines ten high-impact policy recommendations, from fiscal reform and climate finance to coastal protection and water sector transformation.

Delivering on the CCDR's recommendations will require $5.6 billion in additional investment over the next 25 years (in net present value terms). With an estimated annual gap of $213 million, public finances must play a catalytic role in mobilizing private capital. Domestic banks, insurers, pension funds, and payments for ecosystem services can help close the gap, provided the public sector leads in de-risking investments.