Decree N° 2023-034/PR of 15/3/2023 on carbon mechanisms
This Decree establishes the foundational legal framework for carbon markets in Togo. It institutes three primary governance bodies: a National Carbon Management Authority (Autorité Nationale de Gestion des mécanismes de carbone), a National Approval Committee (Comité National d’Homologation), and a Technical Secretariat.
Functions of the National Carbon Management Authority
- Issuing Letters of Authorization (LoAs) and Letters of No Objection to project developers.
- Approving mitigation outcomes.
- Establishing and maintaining a national registry for developed carbon projects.
- Representing the State in engagements with entities and promoters of greenhouse gas (GHG) mitigation projects and adaptation projects with mitigation co-benefits.
- Managing the authorization process for the use of Internationally Transferred Mitigation Outcomes (ITMOs) and the application of Corresponding Adjustments.
- Receiving, managing, and resolving grievances and appeals.
Functions of the National Approval Committee
- Ensuring project implementation aligns with national legislation, sustainable development objectives, and Togo's NDC.
- Verifying project baselines and additionality.
- Providing technical guidance on applications for the approval of GHG mitigation projects and programs.
Functions of the Technical Secretariat
- Receiving carbon project registrations from project promoters.
- Evaluating mitigation projects and programs.
- Monitoring the implementation of projects and programs.
- Organizing meetings for the National Approval Committee.
- Preparing national reports.
- Managing information regarding socio-environmental safeguards.
- Receiving grievances and appeals.
- Managing the national registry of projects and programs.
Other Key Provisions
- The Decree establishes the rights of natural or legal persons to generate and transfer mitigation outcomes in the form of carbon credits, emission reduction units, and results-based payments.
- The Decree mandates the establishment of a national registry for GHG mitigation projects and programs, maintained and managed by the Technical Secretariat.
REDD+ Payments: Stipulates that results-based payments linked to the REDD+ mechanism must be deposited into the National Environment Fund.
Implementing Ministerial Orders
Three Ministerial Orders (N° 038, N° 039, and N° 040) have been issued to operationalize the Decree.
Ministerial Order N° 038: Defining Priority Sectors and Eligible Activities for Carbon Mechanisms
- Priority sectors for carbon market mechanisms are aligned with those defined in Togo's NDC.
- The Ministry of Environment and Forest Resources is mandated to publish an annual, indicative list of eligible activities for each sector identified in the NDC.
Ministerial Order N° 039: Management of the National Registry of GHG Mitigation Activities, Projects, and Programs
- Establishes the national registry as an interactive database featuring informational, operational, and transactional functions.
- Permits the registry to link with other recognized registries (though specific recognized registries are not detailed in the Order).
To guarantee environmental integrity, the registry will, among other functions:
- Indicate a project's approval status.
- Specify approval pathways (e.g., Article 6.2 or Article 6.4 of the Paris Agreement).
- Assign unique approval numbers.
- Disclose all transactions related to listed projects.
- Designates the National Carbon Mechanism Management Authority (Autorité Nationale de Gestion des Mécanismes de Carbone) as the registry administrator, making it responsible for developing the functionalities required for the registry's implementation.
Ministerial Order N° 040: Defining the Approval Procedure for Project and Programmes Eligible for Carbon Mechanisms
1) Pathway for Article 6.2
This pathway applies to projects intending to use ITMOs toward another country's NDC or other international mitigation purposes.
Phase 1: Preliminary Evaluation
- The developer submits a Project Idea Note (PIN) electronically via the ministry's single window and pays an initial administrative fee.
- The National Approval Committee evaluates the PIN against basic eligibility criteria.
- If favorable, the National Carbon Mechanism Management Authority issues a decision of no objection to proceed.
Phase 2: In-Depth Evaluation
- The developer submits a full Project Design Document (PDD) with supporting documentation demonstrating compliance with national laws and safeguards, along with a secondary fee.
- The relevant sectoral ministry provides an opinion on technical feasibility and sectoral NDC alignment within 15 days.
- The developer must have the application file validated by an independent expert, who produces a report confirming the project meets all Article 6.2 conditions.
- The Committee issues a final opinion, and the Authority formally adopts and issues a Letter of Authorization (LoA).
2) Pathway for Article 6.4
This pathway applies to projects seeking to register under the centralized UNFCCC Article 6.4 mechanism.
Phase 1: Preliminary Evaluation
- Similar to Article 6.2, the developer submits a PIN via the single window and pays the initial fee.
- The Committee evaluates the PIN, and the Authority issues a no objection decision to proceed.
Phase 2: In-Depth Evaluation
- The developer submits the PDD and secondary fee.
- The sectoral ministry provides its technical opinion within 15 days.
- An independent expert must validate the application, specifically confirming the project meets Article 6.4 requirements (such as baseline setting and crediting periods). If the developer also wants the resulting A6.4ERs to be authorized as ITMOs, the expert must validate the project against both 6.2 and 6.4 conditions.
- The Committee issues its opinion, and the Authority (acting as Togo's National Designated Authority) formally adopts and issues a Letter of Approval to submit the project to the Article 6.4 Supervisory Body.
3) Pathway for the Voluntary Carbon Market (VCM)
This pathway applies to projects generating credits under independent standards (e.g., Gold Standard, Verra). The procedure branches depending on the developer's intent regarding Article 6.
Option A: VCM Projects Opting into Article 6
If a VCM project explicitly requests authorization under Article 6.2 or approval under Article 6.4, it must complete the respective full, two-phase procedures detailed in the pathways above.
Option B: Standard VCM Projects (No Article 6 Authorization)
If a VCM developer does not request Article 6 authorization, they must still legally obtain approval before starting the activity:
- The developer submits a specific request model/PIN via the single window.
- The National Approval Committee conducts a preliminary evaluation of the PIN. For projects falling under this specific VCM track, a favorable decision immediately takes the form of a Letter of No Objection, which serves as the final official approval. They are not required to undergo the full in-depth PDD phase or independent expert validation.
Registration of the PD or project with the national registry for VCM and Article 6:
According to the decree, registration with the national registry is a mandatory requirement for both the Voluntary Carbon Market (VCM) and Article 6 (transfers at the international level).
