Brazilian Federal Court of Accounts Shares Its Approach with Supreme Audit Institutions
Por Secom
On November 27, the Brazilian Federal Court of Accounts (TCU) launched the Energy Transition Audit Guide, tool aimed at strengthening the role of Supreme Audit Institutions (SAIs) in overseeing public policies related to energy transition. This initiative is part of the global effort to promote fair, sustainable, and inclusive energy transitions in line with international climate commitments.
The guide draws on TCU’s practical experience in conducting a pioneering audit between 2023 and 2024, which assessed Brazil’s preparedness to address the challenges of the energy transition. The audit focused on governance, financing, social inclusion, and the effectiveness of public policies to facilitate the transition. The lessons learned from this process are now being shared with SAIs worldwide, enabling them to adapt and apply the model to their national contexts. The document also incorporates insights from key organizations engaged in the national and international energy transition dialogue.
The guide's development was based on the findings of a study conducted by the TCU in collaboration with the International Organization of Supreme Audit Institutions Working Group on Extractive Industries (INTOSAI - WGEI). The study revealed understanding gaps among SAIs on how to effectively audit energy transition policies, emphasizing the need for clear and well-defined guidelines.
“In addition to addressing WGEI's demands, the guide serves as a valuable resource for the Organization of Latin American and Caribbean Supreme Audit Institutions (OLACEFS), particularly for the newly established Infrastructure and Energy Transitions Commission (COINFRA), which has great potential to regionalize the methodology starting next year,” emphasized Minister Bruno Dantas, President of the TCU.
Simultaneously, the TCU led an international benchmarking effort involving 15 countries and the European Union. This initiative highlighted best practices, methodologies, and global strategies for auditing energy transitions, many of which were incorporated into the guide. SAIs emphasized the use of big data, energy forecasting, and stakeholder analysis as key methodologies for auditing energy transition efforts.
“According to the feedback we've received so far, the guide is expected to be an invaluable tool for managing energy transitions in various settings," stated Dantas.
The guide provides a practical, replicable, and adaptable framework for SAIs to evaluate energy transitions in their respective national contexts. It addresses critical topics such as governance, social and economic impacts, and the alignment of government actions with global climate mitigation and adaptation goals, with a particular focus on prioritizing vulnerable communities during the transition.
Presentation at COP29 and Expanding Impact
During COP29, held in Baku, Azerbaijan, Minister Vital do Rêgo presented the guide as a strategic resource to enhance the transparency and effectiveness of global climate policies.
“The presentation of the guide at COP29 underscores our commitment to promoting audit practices that support the effective implementation of climate policies worldwide,” stated the minister. “We hope this material will serve as a reference for other institutions and contribute to a more transparent and equitable global energy transition,” he added.
At the event, Minister Vital do Rêgo highlighted the importance of turning climate commitments into concrete, measurable actions and emphasized the essential role of SAIs in overseeing these initiatives.
A Legacy for the Future of Auditing
The launch of the guide reaffirms TCU's commitment to transparency and international collaboration. A dedicated webpage on energy transition has been created to enable governments, international organizations, and citizens to access the full content of the document and the methodologies developed for auditing energy transition policies.
To access the Energy Transition Audit Guide and learn more, visit the TCU Energy Transition webpage.