São Tomé and Príncipe faces a pivotal moment to address its critical power sector challenges. Taking advantage of this, there is window of time to take swift and decisive climate-related actions that could reshape its development trajectory while strengthening the country’s resilience to the long-term implications of climate change, including changing rainfall patterns and sea level rise. Important development needs competing over limited resources and development partner support require a more strategic and integrated approach to mainstreaming climate change into comprehensive and realistic policy planning at the sectoral and the national level. Climate change related challenges call for cross sectoral coordination for land policy, water management, energy access, forest protection, and disaster risk prevention. The mission reviewed the current fiscal policies supporting climate action and provided recommendations to support the long-term climate resilience in São Tomé and Principe, while aligning with its overall development objectives.