The dire prospect of climate change and its impacts loom large, and we are being actively challenged like never before to pursue economic development and societal progress in ways that are resilient and sustainable in the long term.
Mauritius remains largely vulnerable to the effects of climate change.
In fact, we are listed among the islands the most exposed to natural hazards:- flash floods, stronger cyclonic conditions, unstable temperatures, prolonged drought, rise in sea levels, beach erosion, etc. The financial implications involved in the bid to protect, preserve, repair and restore our natural and built environments from the effects of these natural disasters are considerable.
Each year, the country faces an accelerated sea level rise of 4.7 mm with accentuated beach erosion in the regions of Albion, Bel Ombre and Mont Choisy with loss of more than 20 meters of beaches over the last decade. Marine capture has declined by 11%. There has been a loss between 2% to 56% of the remaining live coral cover in certain lagoons. These environmental challenges not only have a significant cost, potentially amounting to 50M USD of loss of value in the next twenty years but also exacerbate the negative impact of bad weather conditions on tourism revenue.
Agricultural farms situated on coastal zones are facing saltwater intrusion. Heat stress is causing more and more investment on irrigation and water conservation practices. According to forecasts, water usable will be down by 13% by 2050, with agricultural production down by 30% causing serious concern regarding the future of food production. And we have not yet touched the subject of quantifying the cost impact of Human-induced greenhouse effect through the burning of fossil fuels in vehicles and manufacturing.
Concerns around the climate change and its impact on the world economy has brought an international call to action from leaders of world governments, businesses, and civil society, with organisations such as OECD, the World Bank and the International Monetary Fund, calling for a radical change to encourage low-carbon and climate resilient infrastructure. The government of Mauritius has also been quick and united in its pledge and commitment to call for climate finance and make use of clean technology. Climate finance gap currently stands at USD 5.8 trillion for developing countries.
Mauritius has also taken steps to address climate change through policies, initiatives, and international cooperation. Our country is fully committed to combat climate change under the Paris Agreement and has in place a full set of policies and measures on both adaptation and mitigation. To fulfil this commitment, the country’s Nationally Determined Contributions (NDCs) are estimated at USD 6.5 billion with USD 2 billion for mitigation and USD 4.5 billion for adaptation related actions. Government has already deployed resources representing nearly 5% of GDP. Opportunities therefore exist for entrepreneurs and investors to explore and contribute to the country’s efforts to transform Mauritius into an environmentally sustainable, inclusive, green economy.
The Financial sector is also becoming increasingly involved in financing sustainable projects. In the banking sector, for instance, Mauritius has embraced the ‘Equator Principles’, a set of voluntary guidelines to ensure that large scale development or construction consider the associated potential impacts on the natural environment as well as on the different communities. Likewise, the Stock Exchange of Mauritius (SEM) launched the SEM Sustainability Index (SEMSI) in 2015 which outlines the ESG reporting requirements for listed companies. It is noteworthy that this paved the way towards the launch of the first green bond in 2022.
The EDB is working in close collaboration with public and private sector stakeholders as well as with academia and recently organised a workshop together with the Mauritius Institute of Biotechnology (MIBL), featuring Dr Mandar Godge, an expert from Singapore, highlighting the prospects of controlled environment agriculture to boost food security in Mauritius.
Through its role as a strategic enabler in shaping the economic orientation of the country, EDB wants to inculcate and provide opportunities for a culture of entrepreneurship based on ESG principles.
A tenet of this, is the wide roles of small entrepreneurs in the socio-economic responsibilities and targets of larger groups in shifting towards sustainability in their operations and designs.
There are also encouraging signs that the public, particularly the younger generation, is embracing sustainability, and is prepared to make choices towards the greater good, although they may still need support to translate their aspirations into consistent action.
This edition of our newsletter delves into the inspiring stories of individuals and organisations who are putting sustainability into action, translating environmental responsibility into tangible progress, and into the real-world application of sustainability principles across diverse segments.
On a last note, recent data release by the Bank of Mauritius on Foreign Direct Investment (FDI) for the year 2023, provided a preliminary estimate of Rs 37 billion.
This sets a new all-time benchmark, surpassing last year’s record of Rs 33 billion. This remarkable feat is the result of incessant and indefatigable promotion of Mauritius’s jurisdiction and facilitation of investment projects by the EDB team, which will continue to spur our country’s socio-economic progress.
