Mauritius faces urgent $5.6 billion climate financing need

Mauritius must mobilize $5.6 billion over the next 25 years to address climate threats while sustaining economic growth, according to a February 18, 2026, World Bank report. The funding includes $4.2 billion for climate mitigation and adaptation, and $1.4 billion earmarked for economic reforms. 

This equates to roughly 2.3% of GDP annually through 2030 and 0.9% per year over the following two decades. Without action, Mauritius risks losing up to 4% of GDP by 2050, costing the economy billions in damages.

Vulnerable communities and key risks
Mauritius, responsible for just 0.01% of global greenhouse gas emissions, remains highly exposed to rising sea levels, heatwaves, droughts, and cyclones. 

Coastal populations, one-third of residents, face the highest risks, while the economy heavily relies on tourism and fisheries. Urgent investments in resilient infrastructure, disaster management, and water systems could mitigate these threats.

Structural reforms and economic opportunities
The World Bank highlights structural reforms as crucial, including coastal protection, expanded social safety nets, improved water sustainability, and disaster risk reduction. 

Currently, aging infrastructure captures only 8% of rainfall; 61% is lost as non-revenue water. By 2030, water scarcity could become severe without reform. 

Growth opportunities lie in sustainable tourism, inland diversification, responsible fishing, and renewable energy, with $373 million more needed by 2030 to achieve a 60% renewable electricity target.

Bridging the financing gap
Public debt at 88.5% of GDP means private sector participation is essential. The report estimates a $213 million annual financing gap, emphasizing public funds’ catalytic role. Local banks, insurers, pension funds, and ecosystem payments can help close the gap if policymakers reduce investment risks. Strategic investment today can secure long-term climate resilience and sustainable development for Mauritius.

Comparison of potential GDP loss
Without intervention, the World Bank warns of a GDP loss of up to 4% by 2050, equivalent to billions in economic damages. By contrast, timely investment could safeguard economic stability while unlocking climate-adapted growth opportunities.