News

Togo has introduced a new Environmental Compensation Fee (DCE) as part of the country’s updated environmental legislation. The measure applies to a number of sectors, including maritime transport, and is intended to support Togo’s climate commitments and the implementation of its Nationally Determined Contributions (NDCs).

The legislative reform was formalised by Law No. 2026-007 of 23 March 2026, which amended and supplemented Togo’s Framework Law on the Environment. An Interministerial Decree No. 105/MERPCCC/MFB/2026, dated 7 August 2026, subsequently established the procedures for determining, assessing and collecting the DCE.

Application to maritime transport

The DCE applies to maritime transport to and from Togo. The accompanying pricing schedule covers imports, exports, transit and maritime transhipment operations where the fee is calculated on the basis of the carbon footprint of the route.

For an import, transit or transhipment operation, the reference route is the journey between the country of commercial origin and Togo. For an export, it is the journey between Togo and the country of commercial destination.

The total carbon footprint of the relevant route is calculated by the independent verification body appointed by the Togolese authorities. The calculation takes into account, among other factors, the mode of transport, distance, type of vessel and, where available, actual fuel consumption.

Only 50% of the total carbon footprint is attributed to Togo and used as the taxable base for the DCE.

For maritime transhipment operations and tramp vessels, an additional 50% reduction applies, unless an inter-registry agreement with Togo provides otherwise. In such cases, the amount subject to the DCE is therefore effectively 25% of the total carbon footprint of the relevant route.

Rate

The DCE is set at €15 per tonne of CO₂ equivalent of the attributable taxable base, plus applicable tax.

The amount due is calculated on the basis of the carbon footprint report and is specified in a DCE assessment notice.

Payment and implementation

Payment of the DCE results in the issuance of a digital receipt and DCE certificate. The certificate is a mandatory document for the formalities of vessels operating within Togolese territory.

While the legal framework and procedures have now been established, Budd Togo reports that implementation of the DCE for vessels is expected later in September 2026.

Based on the information currently available, the practical payment formalities for vessels are expected to be handled through the vessel’s local ship agent. Shipowners and operators calling at Lomé should therefore liaise with their agents in advance regarding the applicable amount and payment procedure.

The DCE assessment is payable within 30 calendar days of the date of the assessment notice. Failure to pay within this period gives rise to a 3% lump-sum penalty and late-payment interest of 5% per month.

Non-compliance may also result in administrative sanctions, including a prohibition on the docking and/or operation of a vessel or the revocation of the relevant operating licence or authorisation.

Exemptions

The DCE Pricing Grid provides for a number of exemptions in the maritime sector. These include:

• vessels of the national navy;
• scientific research vessels;
• rescue and salvage vessels;
• maritime patrol boats;
• small artisanal fishing vessels;
• vessels carrying out humanitarian or public-service missions;
• vessels of less than 500 GT;
• bulk carriers, oil tankers, chemical tankers, Ro-Ro vessels, breakbulk and general cargo vessels, liquefied gas tankers, other liquid tankers and refrigerated bulk carriers of less than 3,000 DWT; and
• container ships with a maximum capacity of less than 300 TEU.

Where an exemption is applicable, the required exemption request and certificate procedures must be followed.

What shipowners should be aware of

Shipowners and operators calling at Lomé should take the forthcoming implementation of the DCE into account when planning their port calls. In particular, they should liaise with their local ship agent to establish whether the vessel is subject to the fee, the amount payable and the practical arrangements for obtaining the DCE certificate.

Budd will continue to monitor the implementation of the new system and will provide further information as the practical arrangements become clearer.

Information provided by Budd Togo (budd.togo@budd-pni.com)