Mauritius is currently formulating its third-generation Nationally Determined Contribution (NDC 3.0) under the Paris Agreement, with updated emission reduction targets and adaptation measures, aiming to make the country more climate-resilient and low-carbon.
The announcement was made, yesterday, by the Junior Minister of Finance, Mr Dhaneshwar Damry, during a fireside chat on "Financing for a Sustainable Mauritius", organised by Spaanda and the Economic Development Board (EDB) in Ebène.
The new NDC will align with Government's five-year programme and strengthen Mauritius' transition towards a low-emission economy. While NDC 1.0 had set a target of reducing greenhouse gas emissions by 40% by 2030, the Government has extended the deadline to 2035, given the implementation challenges and financing constraints, said Mr Damry.
He recalled that Mauritius no longer qualifies for concessional finance from Development Finance Institutions due to its Gross Domestic Product per capita, underscoring the need for private sector engagement. "It is imperative to work closely with the private sector, which can invest in climate-related projects," he said, adding that Government has explored financing instruments such as green and blue bonds.
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Mr Damry also announced that a Climate Finance Unit (CFU) will soon be established within the Ministry of Finance, in collaboration with the UK Government. The Unit will focus on derisking projects, ensuring bankability, and mobilising funds for climate initiatives in such as water, renewable energy, solid waste treatment, coastal erosion, and electrification of transport.
He further emphasised the importance of green tagging, which allows better allocation of capital, noting that six Ministries and two special funds have already embarked on the exercise. The Junior Minister also stressed the need for green skilling, to equip Mauritians with the knowledge and expertise required to thrive in a sustainable, resource-efficient economy.
Speaking at the event, the Chief Executive Officer of Spaanda, Mrs Manjula Basant Rai, underlined the country's vulnerability to climate change and the necessity of reinforcing sustainable finance. She called for stronger regulatory frameworks, deeper Government-private sector collaboration, and resilient financial systems.
Similarly, the Director of Financial Services at the EDB, Mr Vinay Guddye, highlighted the importance of aligning Mauritius' financial systems with sustainable development goals and greening the domestic financial system.
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The event also comprised a panel discussion with representatives from ABSA Bank; State Bank of Mauritius; MauBank; Bank of Mauritius; and Mauritius Commercial Bank. It focused on the opportunities and challenges of green finance. Panellists stressed that climate change poses systemic risks to the economy, highlighting the urgency of issuing green bonds, enhancing financial frameworks, promoting green skills, and supporting SMEs in developing sustainable strategies. According to the panellists, most SMEs lack awareness and access to information on sustainability and called for advisory services on adaptation, risk assessment, and accessing climate funds.
On the same occasion, Spaanda launched its "Mobilising Finance for Low-Carbon Transition" workshop series to explore the strategic requirements and financial tools needed for Mauritius' decarbonisation journey. The first series will be on the Real Estate and Construction sectors and will be held on 23 and 24 September 2025 at the Hennessy Park Hotel in Ebène.
