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Table Executive Summary 2 Introduction 7 Cabo Verde’s background 9 1.1 Cabo Verde Tourism Context 9 Circular Economy Gap Analysis 11 2.1 Infrastructure Systems: Materials and Waste 11 2.2 Infrastructure Systems: Energy 14 2.3 Infrastructure Systems: Water 17 2.4 Linkages Between Resource and Infrastructure Systems 20 Circular Economy Initiative Shortlisting 23 Tourism Gap Analysis and Market Sizing 26 4.1 Interview Audit and Online Survey Findings 26 4.2 Waste Management and reduction 27 4.2.1 Main barriers to implementation and investment 28 4.3 Energy 29 4.3.1 Main barriers to implementation and investment 30 4.4 Water 31 4.5 Food and Beverage (audits only) 32 4.6 General Barriers and Enablers 32 4.7 Investment Opportunities for a More Circular Tourism Sector 33 Circular Economy Business Cases 36 5.1 Integrated Waste Management Facility in Sal Island 36 5.1.1 Project objectives 36 5.1.2 Supporting assumptions 37 5.1.3 Feasibility Results 37 5.1.4 Policy enablers 39 5.2 Reverse Logistics for Plastics 39 5.2.1 Project objectives 39 5.2.2 Supporting assumptions 40 5.2.3 Feasibility Results 40 5.2.4 Policy enablers 41 Roadmap for proposed circular economy initiatives 43 Institutional and Regulatory Analysis 47 7.1 Establishing a Circular Economy Governance Framework in Cabo Verde 47 7.2. Enabling regulatory and institutional reforms for a circular economy in Cabo Verde 48 7.3 Prioritizing the most relevant regulatory reforms for circular economy and tourism 51 Conclusions and Next steps 55 References 58 ACKNOWLEDGMENTS List List ACRONYMS Executive Summary Executive Summary Introduction Introduction Section 1 Cabo Verde’s background 1.1 Cabo Verde Tourism Context 1 2 3 4 5 6 Section 2 Circular Economy Gap Analysis 2.1 Infrastructure Systems: Materials and Waste Figure 1: Municipal waste generation (per year and per person) 70,000 1.4 Waste generation (Kg) 60,000 1.2 50,000 1.0 Waste generation per capita 40,000 0.8 30,000 0.6 20,000 0.4 10,000 0.2 0 0.0 Santiago São Sal (2017) Boa Vista Maio Brava Fogo Santo São (2020) Vicente (2020) (2018) (2017) (2017) Antão Nicolau (2017) (2017) (2018) Baseline total annual waste generation (t/a) Per person waste generation (kg/capita/day) Table 1: Waste Generation Scenario Projections for all Cabo Verde islands7 7 8 Figure 2: Solid Waste Composition by Weight Paper/Cardboard 2% 1% Glass Bottles 7% Other Glass and Porcelain 19% 9% TetraPak® Composites 2% 5% 0% Fine Other Composites 1% 4% plastics 1% 10% Textiles and Footwear PET 2% 2% Hygienic Consumables 1% Other 8% 10% 3% Cans 2% plastics 6% Other Metals 12% Plastic waste 2% Woods 1% 1% Hazardous Waste 2.2 Infrastructure Systems: Energy 9 10 Figure 3: Total Energy Supply by Source Figure 4: Total Energy Supply by Renewable Energy 14% 16% 1% 84% 85% Wind Solar Bioenergy Oil Gas Nuclear Coal and others Renewables Figure 5: Electricity Production by Island (percentage) 1% 4% 3% Santo Antão 17% São Vicente São Nicolau 2% Sal Boa Vista Maio 14% Santiago 54% Fogo 4% Brava 1% 11 12 Figure 6: Cabo Verde Energy Tube Map Figure 7: Renewable Energy Potential in Cabo Verde 13 2.3 Infrastructure Systems: Water Figure 8: Cabo Verde Whole Country Water Balance (Annual) 14 15 16 17 2.4 Linkages Between Resource and Infrastructure Systems Figure 9: DPSIR Analysis for Cabo Verde 18 Section 3 Circular Economy Initiative Shortlisting 19 20 21 22 23 Section 4 Tourism Gap Analysis and Market Sizing 4.1 Interview Audit and Online Survey Findings Figure 10: Location of survey respondents (usable sample) Boa Vista 1 Brava 8 Fogo 11 2 Maio 3 3 Sal Santiago (outside of Praia) Santiago (Praia) 17 19 Santo Antāo Sāo Nicolau 4 3 Sāo Vicente 24 Figure 11: Main sustainability interventions by tourism stakeholders Procurement of plastic alternatives 26 24 On-site renewable energy generation 19 17 Company policies to address resource use and… 15 14 Support local community initiatives 13 13 New sustainable products and services 12 11 Recyclable packaging 11 11 Conservation and habitat restoration initiatives 9 9 Improved drinking water quality 7 6 Local food sourcing 6 4 Purchase of electric and hybrid vehicles 3 2 Green transportation 2 0 5 10 15 20 25 30 4.2 Waste Management and reduction Figure 12: Current actions and investment interest Community recycling schemes 5 33 33 Already doing Separation of textiles 9 28 34 this Separation of e-waste 14 25 32 Separation of metals 11 28 32 We would like to do this in the next 5 years Separation of plastics 19 28 24 Separation of glass 17 24 30 Don't know/Not applicable Anaerobic digestion 5 20 46 Composting 16 29 26 0% 20% 40% 60% 80% 100% Figure 13: Current plastic reduction and investment interest Refillable bottles for toiletries 36 10 25 Large dispensers for toiletries 15 31 25 Reduced consumption of cling film 17 21 33 Substitutes for cling film 28 11 32 Products in refillable containers 30 13 28 Dispense food from large containers 11 24 36 Cooking oil in large containers 22 16 33 Cooking oil in non-plastic containers 16 14 41 Compostable cutlery and straws 21 12 38 Alternatives to disposable cutlery and straws 32 17 22 Reused or recycled packaging for soft and alcoholic drinks 13 22 36 Refillable bottles for soft and alcoholic drinks 14 30 27 Dispense soft and alcoholic drinks in larger containers 12 26 33 Refillable water bottles in restaurants 10 35 26 Refillable water bottles in hotels 13 34 24 0% 20% 40% 60% 80% 100% Figure 14: Willingness to pay for SUP alternatives Plastic waste bags 4 12 24 18 Bathroom toiletries 4 12 24 17 Cling film wrap 4 12 26 16 Plastic food containers 4 12 26 16 Plastic cooking oil containers 4 12 28 13 Disposable cups, plates, bowls and takeaway food trays 4 1 3 25 15 Cutlery and drinking straws 4 1 4 25 14 Plastic bottles of soft and alcoholic drinks 4 1 3 24 16 Plastic water bottles 4 12 25 15 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No more than double the price No more than 75% more expensive No more than 50% more expensive 4.2.1 Main barriers to implementation and investment Figure 15: Main firm-level barriers Figure 16: Main economic-level barriers 4.3 Energy 25 Figure 17: Current actions and investment interest Energy certifications 2 52 LED lighting 52 2 Staff awareness 40 14 Signage encouraging saving energy 20 34 Electricity activated by key card 16 38 Lighting with sensors 28 26 Insulation 7 47 Fans 21 33 Natural ventilation 37 17 Double glazing 14 40 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Already invested Have not already invested Figure 18: Energy measures investment interest Electric vehicles 5 11 10 28 EV charging 11 7 9 27 Battery storage 5 11 10 8 20 Micro-hydro 1 15 38 Heat pumps 1 1 16 36 Biomass 1 22 31 Wind 1 4 14 35 Solar powered A/C 2 7 6 16 23 Solar water heating 21 22 5 1 5 Solar PV 25 21 4 1 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Already Invested High Likelihood Medium Likelihood Low Likelihood 4.3.1 Main barriers to implementation and investment 19 Figure 19: Main firm-level barriers Figure 20: Main economic-level barriers Unclear benefits for the business Lack of support from government Lack of incentives from Availability of skills and training electricity supplier Current cost of battery storage Lack of information/knowledge on options Regulatory barriers Cost of financing and payment Level of business commitment to terms sustainability Cost of investment 0% 10% 20% 30% 40% 50% 0% 50% 100% Restaurant/Cafe/Bar/Club Tour Operator/Activity Provider Restaurant/Cafe/Bar/Club Tour Operator/Activity Provider Accommodation Accommodation 4.4 Water Figure 21: Current actions and investment interest On-site desalination 1 4 7 8 27 On-site WWTP 8 4 8 27 Septic tank 13 3 4 3 22 Recycling greywater 9 11 4 4 11 Reduce frequency of laundry 22 6 3 4 Signage 16 15 1 1 4 Aerator taps 11 13 7 2 4 Staff training 14 12 3 1 5 Rainwater harvesting 5 6 5 9 20 Groundwater system 4 3 3 10 26 Water filtering systems 5 9 9 6 9 0% 10% 20% 30% 40% 50% 60% 70% Already Invested High Likelihood Medium Likelihood Low Likelihood Figure 22: Main driver/blockers for implementation Tariff reform 28% Improved quality 26% Improved reliability of supply 11% Staff training 22% Financial assistance 39%, 21 Tax incentives 31% Support to establish business case 22% Information on options and cost 19% Connection to sewer network or septic tank 13% Piped connection to local water supply 22% 0 5 10 15 20 25 4.5 Food and Beverage (audits only) 4.6 General Barriers and Enablers 4.7 Investment Opportunities for a More Circular Tourism Sector 26 Section 5 Circular Economy Business Cases 5.1 Integrated Waste Management Facility in Sal Island 5.1.1 Project objectives i) ii) iii) iv) v) 5.1.2 Supporting assumptions • • • • • • • • • • • • • • Figure 23: Net present value in central scenario - Integrated Waste Management Facility 3,000,000 Net Present Value (2022 USD) 2,000,000 1,000,000 0 -1,000,000 -2,000,000 -3,000,000 -4,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Year CAPEX OPEX Revenues Cumulative Cashflow 5.1.3 Feasibility Results Table 2: Scenario overview for ROI and IRR in the integrated waste management facility for Sal business case • • • • • • • 5.1.4 Policy enablers • • • • 5.2 Reverse Logistics for Plastics 5.2.1 Project objectives 27 5.2.2 Supporting assumptions • • • • • • 5.2.3 Feasibility Results Figure 24: Net present value in central scenario - Plastics alternatives 5,000,000 Net Present Value (2022 USD) 4,000,000 3,000,000 2,000,000 1,000,000 - -1,000,000 -2,000,000 -3,000,000 -4,000,000 -5,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Year CAPEX OPEX Revenues Cumulative Cashflow 28 Table 3: Scenario overview for ROI and IRR in the Cabo Verde plastics alternatives business case 5.2.4 Policy enablers • • • • • Section 6 Roadmap for proposed circular economy initiatives Table 4: Shortlist of Circular Economy Investment Projects in Cabo Verde • • • • • • • • • Section 7 Institutional and Regulatory Analysis 7.1 Establishing a Circular Economy Governance Framework in Cabo Verde • • 7.2. Enabling regulatory and institutional reforms for a circular economy in Cabo Verde Figure 25: Regulatory and Institutional Initiatives in Cabo Verde Table 5: Proposed regulatory and institutional initiatives 29 7.3 Prioritizing the most relevant regulatory reforms for circular economy and tourism Table 6: Priority Regulatory Initiatives - - - - - 30 31 - - - - - Table 7: Priority Regulatory Initiatives - - - - - - - - - - - - Section 8 Conclusions and Next steps Table 8: Next steps to support actions in the circular economy and tourism gaps found in this report References References Basel Convention focuses on the Control of Transboundary Movements of Hazardous Wastes (1999) Cape Verde https://www.basel.int/Countries/StatusofRatifications/PartiesSignatories/tabid/4499/Default.aspx Cape Verde Power Grid Code, Decree-Law no. 31/2019. Electric Sector Masterplan and Energy Efficiency Code https://www.aler-renovaveis.org/en/communication/news/recent-developments- in-cape-verde-legislation/ FAO (2019) Climate Smart Agriculture in Cabo Verde https://www.fao.org/documents/card/fr/c/ca5405en/ INE Cabo Verde (2015) Conta Satélite de Turismo de Cabo Verde, 2011-2014 https://ine.cv/wp- content/uploads/2016/10/Publicacao-CST.pdf INE Cabo Verde (2022) Censos 2021: População residente segundo o meio de residência e sexo por grupos etários INE Cabo Verde (2022) Censos 2021: População residente segundo o meio de residência e sexo por grupos etários. https://ine.cv/wp-content/plugins/ine-download-attachments- by-zing-developers/includes/download.php?id=16148 INE Cabo Verde (2022) PIB e Componentes (Trimestrais) – 1° Trimestre 2007 a 1° Trimestre 2022 https://ine.cv/pib-e-componentes-trimestral-2/ IRENA (2022) Energy Profile – Cabo Verde https://www.irena.org/- /media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Africa/Cabo- Verde_Africa_RE_SP.pdf?rev=dddc2dd4003d4e14a8b464177850e049 National Water and Sanitation Agency - ANAS (2016) Decree-Law No. 32/2016 approving the National Strategic Plan for Waste Management (PENGeR) for the period 2015-2030. https://faolex.fao.org/docs/pdf/cvi155273.pdf Plano Estratégico de Desenvolvimento Sustentável (PEDS) 2017/2021 https://caboverde.un.org/pt/33731-plano-estrat%C3%A9gico-de-desenvolvimento- sustent%C3%A1vel Republic of Cape Verde - Strategic National Plan for the Prevention and Management of Waste (PENGeR) Decree-Law no. 32/2016 https://knowledge-hub.circle- economy.com/article/17683?n=Republic-of-Cape-Verde---Strategic-National-Plan-for-the- Prevention-and-Management-of-Waste-(PENGeR)-Decree-Law-no.-3... Sistema de Gestão de Informação Energética de Cabo Verde (2022) Estatística. https://www.portalenergia.cv/estatistica United Nations Climate Change COP21 (2015) Paris Agreement. https://unfccc.int/process-and- meetings/the-paris-agreement