[News article] Audit Guide for Energy Transition Presented at COP29

From 11 to 22 November 2024, Brazil’s Federal Court of Accounts (Tribunal de Contas da União – TCU) took part in the United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan. During the event, the Court contributed to global discussions on energy transition by launching the Practical Audit Guide for Supreme Audit Institutions (SAIs).

Developed from the TCU’s own audit on Brazil’s energy transition, the guide was presented by the Court’s Vice President, Minister Vital do Rêgo. Its purpose is to strengthen climate audit methodologies and to promote fair, effective, and sustainable energy transitions worldwide.

The TCU’s participation at COP29 reflects not only Brazil’s strong commitment to climate action but also the country’s leadership in developing audit frameworks that help ensure the effectiveness and equity of energy transition policies. Through this initiative, the TCU supports Supreme Audit Institutions globaly in enhancing their capacity to monitor and evaluate public policies related to the shift toward cleaner energy systems.

In 2024, the TCU conducted a global survey in collaboration with the Working Group on Audit of Extractive Industries (WGEI) of the International Organization of Supreme Audit Institutions (INTOSAI). The study revealed that audit institutions are eager to expand their knowledge and share experiences related to energy transition audits.

Building on this expertise, the TCU developed the guide to disseminate lessons learned and support other audit institutions in assessing their countries’ progress toward low-carbon economies. The publication aims to help improve public policies on energy transition and to contribute to the achievement of international climate commitments.

Core Pillars for a Just Transition

The Practical Audit Guide for Energy Transition is structured around four key pillars:

• Governance: assesses the regulatory framework, institutional arrangements, and strategic planning for energy transition.

• Just and inclusive transition: focuses on eradicating energy poverty, including vulnerable communities, and promoting social and economic development.

• Financing: examines investment needs, financial flows, and transparency in the use of funds.

• Energy transition themes: explores specific topics such as renewable energy, energy efficiency, carbon pricing, and electric mobility.

Together, these four pillars provide a solid foundation for Supreme Audit Institutions and other oversight bodies to conduct more comprehensive and effective audits of energy transition policies. They also help ensure that investments in this sector are properly monitored and aligned with principles of social justice and sustainability.

Between 2023 and 2024, the TCU carried out a pioneering audit to assess the Brazilian government’s preparedness for the transition to a low-carbon economy. The findings of that audit were instrumental in shaping the structure of the guide, which was presented at COP29 as a reference for other countries.

Click here to download the Practical Audit Guide for Energy Transition.

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News article showcasing the Brazilian Federal Court of Accounts’ (TCU) contribution to COP29 discussions through the launch of its new Audit Guide for Energy Transition. Originally published on the TCU’s official website.