Voluntary carbon markets (VCMs) have the potential to advance climate action by providing an avenue for organizations to offset their hard-to-abate greenhouse gas (GHG) emissions to meet their targets. However, VCMs face ongoing challenges and controversies that undermine their credibility and effectiveness.

Climate change affects everyone, transcending borders and economic boundaries. Rapid progress to mitigate climate change requires public sector action, and effective action requires the quality information only sustainability reporting standards specific to the sector’s needs can provide.

To meet the public sector’s unique reporting needs, the International Public Sector Accounting Standards Board^® (IPSASB^®) is developing the world’s first climate-related disclosure standard for governments around the world, with support from The World Bank. The draft of this inaugural Sustainability Reporting Standard (IPSASB SRS ^TM) is being issued today for public comment.

Ian Carruthers, IPSASB Chair, said: "The rapid progress needed to address climate change requires public sector action. The scale of the investment involved and the need for coordinated action across all sectors of the economy mean that only governments are equipped to lead the changes required. Using policy tools, such as taxation, regulation, and subsidies, governments can influence behaviors across entire economies.

“Public sector finances are already stretched following the pandemic, so while stronger public financial management can release some of the resources required, the capital markets will need to fill the gap. With sovereign bonds already making up almost 40% of the $100 trillion global bond market in 2022, IPSASB’s proposed standard on climate-related disclosures will be help governments provide consistent, comparable, and verifiable information and will ultimately help them maintain access to capital markets.”

To promote global consistency and comparability, IPSASB SRS ED 1, Climate-related Disclosures proposes public sector specific guidance which builds on the International Sustainability Standards Board (ISSB) global baseline. In doing so, IPSASB SRS ED 1 proposes principles for the more limited group of public sector entities that have responsibility for climate-related public policy programs and their outcomes.

Sue Lloyd, ISSB Vice-Chair, said: "The public sector is a major component of global capital markets so ensuring public sector organisations disclose high quality, comparable sustainability information is important to meet the information needs of investors. By building on the ISSB’s global baseline ꟷ which is being adopted by jurisdictions around the world ꟷ IPSASB is bringing the public sector into the global sustainability reporting ecosystem. Consistency in disclosure requirements will help support comparability across sectors and is essential to driving an efficient corporate reporting system, reducing complexity and fragmentation that could undermine the usefulness of sustainability information in investor decision-making.”

The IPSASB urges public sector stakeholders, including preparers of public sector climate-related and other sustainability reports, regional and national sustainability reporting standard setters, professional accountants, sustainability assurance providers, and interested members of the public including indigenous peoples to share their comments on the proposed standard and other matters raised in IPSASB SRS ED 1 by February 28, 2025. Feedback received on IPSASB SRS ED 1 will shape the final standard which will assist governments and other public sectors around the world in being accountable for their actions to address climate change.

To discuss the proposals outlined in the draft standard, the importance of public sector leadership in climate reporting, and how the standard aligns with global sustainability efforts, the IPSASB is hosting an online launch event for IPSASB SRS ED 1 featuring an insightful discussion between Ian Carruthers, IPSASB Chair, Sue Lloyd, Vice-Chair of the International Sustainability Standards Board (ISSB), and Lee White, Chief Executive Officer of IFAC, moderated by Owen Mapley, Chief Executive Officer of CIPFA. Register here to join virtually on November 13, 14:00 UTC.

How to Access
Access the IPSASB SRS ED 1, Climate-related Disclosures, its summary At-a-Glance document, and submit a comment. Comments on the Exposure Draft are requested by February 28, 2025. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®), IPSASB Sustainability Reporting Standards™ (IPSASB SRS™) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and IPSASB SRS and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development.  The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The International Federation of Accountants (IFAC) in partnership with the Emirates Association for Accountants & Auditors (EAAA) and under the patronage of H.E. Abdulla bin Touq Al Marri, Minister of Economy, this week convened regional and global leaders representing finance, accountancy, securities and audit regulators, the investment community, and the standard setting community with the aim of advancing sustainability reporting, assurance, and capacity building in the Middle East North Africa region (MENA).

The event, IFAC Connects MENA, is the third in a series of IFAC Connects events created by IFAC around the world to encourage broad, solutions-oriented dialogue about key regional issues with global impact. IFAC recently held similar events in Singapore and in Bogota, Colombia, and in each of these cases collaborated with local professional accountancy organizations as well as the Forum of Firms -- an association of international networks of accounting firms that promotes consistent and high-quality standards of financial reporting and auditing practices worldwide.

Lee White, IFAC Chief Executive Officer, said, “Connected learning, innovation, a strong collective voice and commitment to the public interest are central characteristics of IFAC’s members, and critical to driving positive momentum. Moreover, in order to respond meaningfully to global challenges related to climate and sustainability matters, we need alignment and cooperation between governments, regulators, standard setters, and the accountancy profession.”

His Excellency Saif Al-Muheiri, Chairman of the Emirates Association for Accountants and Auditors (EAAA), said: “The accountancy profession that EAAA represents in the UAE is critical to how corporate reporting evolves to incorporate sustainability-related information, especially for use in capital allocation and investment decisions. Our skills with data, systems, processes and analysis are critical to this transformation which will create an ongoing dialogue with important regulatory bodies such as the Ministry of Economy.”

IFAC recently released its latest report, Beyond the G20: The State of Play in Sustainability Disclosure & Assurance, which provides a focal point for discussions between accounting, regulatory, and policy leaders and has a specific focus on the unique challenges and opportunities faced by six representative jurisdictions from MENA.

To advance the sustainability transformation or for more information about this conference or IFAC Connects events, please contact the office of Chief Executive Officer Lee White at Communications@IFAC.org.

About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The International Public Sector Accounting Standards Board^® (IPSASB^®) has issued Exposure Draft (ED) 92, Tangible Natural Resources for public comment.

“Tangible natural resources represent a significant proportion of economic resources in many jurisdictions,” said IPSASB Chair Ian Carruthers. “The proposed guidance fills an important gap in the IPSASB’s literature and will improve not only financial reporting but also encourage better public financial management and policy decisions for many governments.”

Tangible natural resources encompass all naturally occurring items with physical substance which embody service potential or the capability to generate future economic benefits. However, no International Public Sector Accounting Standard^® (IPSAS^®) guidance currently exists on the accounting for tangible natural resources, and as a result, many governments lack information on the extent and value of tangible natural resources.

ED 92 proposes recognition, measurement, presentation and disclosure guidance to address this gap.

The IPSASB welcomes the views of respondents on the proposed standard and other matters raised for comment in the ED. Comments received will help shape the final IPSAS related to Tangible Natural Resources.

How to Access
Access Exposure Draft 92, Tangible Natural Resources, its summary At-a-Glance document, or to submit a comment. Comments on the Exposure Draft are requested by February 28, 2025. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

The global search for the next International Public Sector Accounting Standards Board (IPSASB) Chair is underway, led by the independent Search Committee (Search Committee) established by the Public Interest Committee and the International Federation of Accountants (IFAC). Interested candidates with a background in public sector financial and/or sustainability reporting and strong leadership skills are encouraged to apply.

The IPSASB Chair is a full-time executive position, appointed for an initial three-year term, commencing January 1, 2026, with the possibility of re-appointment for a total tenure of up to nine years. While relocation is not required for this role, regular interaction with IPSASB staff located in Toronto, Canada, and geographically dispersed Board members is expected. Additionally, extensive international travel is needed to ensure effective collaboration with all key stakeholders and to promote the adoption and implementation of the International Public Sector Accounting Standards (IPSAS) and the forthcoming IPSASB Sustainability Reporting Standards (IPSASB SRS).

As the IPSASB enters a new phase with an increased focus on the maintenance and application of the IPSAS suite of standards along with the development of sustainability reporting standards, the Search Committee is seeking a visionary leader capable of guiding the Board and the IPSASB staff through the evolving challenges of financial and sustainability reporting in the public sector. Given the pace of change in both technical areas and the broader public sector environment, the next Chair must be adept at navigating these challenges and leading the Board’s technical standard setting program successfully.

“We seek candidates with significant, and senior-level experience, who are well-recognized within the professional global community,” said Vinod Rai, Chair of the Search Committee. “It is equally important that candidates have a strong understanding of the public sector and a commitment to the IPSASB’s public interest mandate. Strategic leadership and communication skills are essential, and relevant standard-setting experience is also key for success in this important global role.”

A complete job description, along with application instructions, is included in the Call for Applications. Applications are due January 26, 2025 (midnight UTC).

About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

About the IPSASB
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards™ (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.