Mauritius Faces $5.6 Billion Climate Investment Challenge to Unlock 32,000 New Jobs

Mauritius must mobilise an additional $5.6 billion in investment over the next 25 years to survive mounting climate threats and transition to a resilient economy, according to a landmark report.

The Mauritius Country Climate and Development Report (CCDR) reveals that while the island nation faces “outsized” risks from rising sea levels and cyclones, decisive action could transform these challenges into a massive economic engine, potentially creating 32,000 jobs by 2030 through renewable energy and the “blue economy.”

The Price of Resilience

The report, authored by the World Bank, identifies a significant funding gap, noting that an additional $213 million is required annually to meet climate goals.

While the state-led development model that propelled Mauritius to upper-middle-income status has reached its limits, the CCDR argues that public finances must now act as a catalyst to unlock private capital from domestic banks, insurers, and pension funds.

Key Economic Risks

• Sector Vulnerability: Tourism and fisheries—the backbone of the economy—are under immediate threat.
• Coastal Exposure: One-third of the population lives in coastal areas, directly in the path of flash floods and sea-level rise.
• Water Scarcity: Increasing competition for water between households, agriculture, and the tourism sector.

A Roadmap for Transformation

Despite contributing just 0.01% to global emissions, Mauritius faces high adaptation costs. The CCDR outlines three interlinked priorities to safeguard the nation’s prosperity:

1. Strengthening Foundations

The report calls for “growth-sensitive” fiscal reforms to rebuild buffers and the urgent closure of a “green skills gap” through targeted education to prepare the workforce for new industries.

2. Reorienting Key Sectors

A shift toward sustainable tourism and the “blue economy” is recommended. This includes:

• Diversifying tourism offerings inland.
• Marine spatial planning to protect ocean ecosystems.
• Accelerating the renewable energy transition through tariff reforms.

3. Reducing Vulnerability

Critical infrastructure projects are required to “climate-proof” Port Louis and upgrade public transport.

The report also highlights the need for urgent reform in water management and pricing to ensure long-term sustainability.

From Risk to Opportunity

The transition is described not merely as a cost, but as a “pivotal moment” for the nation.

By investing in the sustainable use of ocean resources and renewable power, the report suggests Mauritius can achieve inclusive growth and energy security.

Success, however, hinges on the government’s ability to lead in “de-risking” these massive investments to attract the necessary private finance.

Source: World Bank