“Greening” public finance and the role of the Supreme Audit Institution: International Experiences and Recommendations for Vietnam

Abstract

This paper explores the relationship between green public financial management and climate-responsive public sector auditing. It highlights the increasing fiscal exposure of governments due to climate-induced disasters and argues for a systemic shift in how public resources are allocated and audited. Green PFM integrates climate considerations into budgeting, procurement and expenditure tracking, while green auditing ensures transparency, accountability, and policy effectiveness. The paper reviews international tools such as PEFA-Climate, ISAM (IDI’s SDG Audit Model) and ClimateScanner, showing how they help Supreme Audit Institutions monitor climate action and assess government readiness. For Vietnam, the paper recommends adopting international frameworks, developing specialized audit capacities, and enhancing inter-agency collaboration to green national budgeting and oversight systems. The State Audit Office of Vietnam is urged to lead in climate auditing and governance reform.