TOGO Climate Policy Diagnostic September2025 Prepared ByChristine Richmond,Aurelien Billot, Katja Funke, Michal Pietrkiewicz, Alpa Shah ©2025 International Monetary Fund [HLS/25/046] High-LevelSummary Technical Assistance Report Fiscal Affairs Department Togo: Climate Policy Diagnostic Prepared by Christine Richmond, Aurelien Billot, Katja Funke, Michal Pietkiewicz, Alpa Shah TheHigh-LevelSummary Technical Assistance Reportseries provides high-level summaries of theassistance provided to IMF capacity development recipients, describing the high-level objectives, ABSTRACT: Togo aspires to attain middle-income status by 2030, anchored in social inclusion, jobcreation, and modernization. However, the country faces important development challenges. Thisincludes dealing with the impacts of climate changesuch asrising temperatures, more frequent extremehot days, and increasingly erratic rainfall patterns, with intensified single-day precipitationevents. This is JEL Classification Numbers H3, H23, H5, L1, L5 The contents of this document constitute a high-level summary of technical advice provided by the staff ofthe International Monetary Fund (IMF) to the authorities of a member country or international agency (the"CD recipient") in response to their request for capacity development. Unless the CD recipient specifically International Monetary Fund, IMF PublicationsP.O. Box 92780, Washington, DC 20090, U.S.A.T. +(1) 202.623.7430 • F. +(1) 202.623.7201publications@IMF.org Background The Government of Togo aims to achieve middle-income status by 2030 through (i) strengthening socialinclusion and peace; (ii) boosting job creation; and (iii) modernizing the country. Recent progress includesimproved access to electricity, drinking water, and health centers, along with efforts to prevent coastalerosion. However, maintaining momentum and ensuring inclusive growthand developmentwill require Togo is already among the hottest countries globally, and even moderate warming poses significant risks.Yet extreme temperature and intense precipitation events are becoming more frequent, which poses Summary of Findingsand Recommendations Expanding Energy Provision While Containing Emissions Togo’s electricity sector faces structural, financial, and regulatory challenges that hinder reliable andaffordable power supply. The sector is governed by a complex institutional framework with overlappingroles between the Ministry of Energy and the regulator (ARSE), and relies heavily on expensive importedelectricity and gas, contributing to high supply costs. Tariffswere adjusted upwards for the first time since2011 in May 2025. This represents important progress towards adjusting rates to reachcost-recoverylevels,an issue that has beenplacingconsiderablefinancial strain on SOEs—particularly CEET, whichoperates under persistent losses. Investment in infrastructure has been limited, and expansion depends Climate Sensitive Management of Water Resources Togo faces growing pressure on its water resources due to climate change, rising demand, andinadequate infrastructure. Although the country is relatively well endowed with water, evaporation,pollution, and deforestation are degrading both surface and groundwater supplies. Urban wastewater islargely untreated, exacerbating water quality issues. Groundwater, which supplies most of the population, weakening service provision. Although the framework allows for private sector participation, investorinterest is constrained by high offtaker risk and insufficient returns. Addressing these challenges willrequire improved enforcement of the Water Code, increased infrastructure investmentand targeted tariff Aligning Land Use with Forestry and Agriculture Togo’s land management and land-use planning systems play a central role in supporting climateadaptation, protecting natural resources, and guiding sustainable development. While the legal andinstitutional frameworkis broadly aligned with good practice, implementation remains at an early stage.Land-use planning has only been initiated in a small share of municipalities, and limited mapping data,weak institutional capacity at the local level, and lack of public access to plans hinder coordination andtransparency. Land titling remains low, especially in rural areas, due to unresolved disputes and limited BuildingResilience to Climate Change Togo faces high disaster and climate risk due to its vulnerability, low coping capacity, and limitedinstitutional coordination, despite relatively low exposure to severe natural hazards. Disaster riskmanagement (DRM) efforts have largely focused on emergency response, anchored in the National CivilProtection Agency (ANPC), but with limited investment in prevention, mitigation, and resilience-building.Fragmented mandates, inadequate data sharing, and weak integration across ministries hinder themainstreaming of DRM into development planning. Construction standards do not yet reflect climate risks,and