Portugal and Cape Verde have reached a debt settlement. Portugal will invest in the Cape Verdean fund for climate and energy transition by repaying Cape Verde's debt.
Portugal reaches debt settlement with Cape Verde
Portuguese Prime Minister Antonio Costa (R) gives a press conference with his Cape Verdean counterpart Ulisses Correia e Silva after their meeting at Sao Bento Palace
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The Portuguese-speaking country owes Portugal around 600 million euros. The agreement signed states that each time a part of the debt is paid off, the amount will be reinvested in the country in its entirety. This investment could reach 12 million euros by 2025.
"It is a way of converting what is a debt into what becomes Cape Verde's capacity to invest in the energy transition and in combating climate change. We are doing this together. Climate change is surely the greatest challenge facing humanity today, but this challenge is on a global scale and no country will be sustainable if all countries are not," said António Costa, Portuguese PM.
Cape Verde's goals in terms of sustainable development targets energy transition. The country hopes that, by 2030, more than 54% of energy production will result from renewable energies.
Currently, the island nation imports about 80% of the fuels it consumes. Portugal has exceeded this target and hopes to reach 80 percent by 2026.