Policy Workshop on Climate-Responsive Public Financial Management in ASEAN Countries
Finance and treasury leaders, policymakers, and climate experts gathered at the ASEAN Treasury Forum to exchange knowledge and advance climate-responsive public financial management across ASEAN. Photo credit: ADB.
A focused dialogue advancing practical solutions for integrating climate risks into treasury operations and public financial management across ASEAN
The Policy Workshop on Climate-Responsive Public Financial Management was convened as a side event to the ASEAN Treasury Forum (ATF) in Putrajaya, Malaysia on 6 to 8 August 2025. The workshop brought together more than 60 finance and treasury officials, policymakers, and climate finance experts from Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, the Philippines, Thailand, Timor-Leste, and Viet Nam.
The workshop complemented the ATF agenda by focusing on the growing importance of integrating climate considerations into treasury practices and public financial management systems. Through expert presentations, case studies, and peer exchange, participants explored practical approaches to addressing climate-related fiscal risks, improving environmental spending efficiency, and advancing green public procurement.
Discussions underscored the significant and compounding fiscal risks posed by climate change in the region—including infrastructure damage, economic disruption, and increasing pressure on public budgets. Participants highlighted the need for Ministries of Finance to strengthen their capacity to assess both physical and transition risks, and to implement sequenced public financial management reforms.
Key areas of focus included
- integrating climate risks into fiscal risk assessment and reporting,
- enhancing budget planning and execution to support climate objectives, and
- strengthening fiscal strategies for disaster preparedness, response, and recovery.
The workshop also identified key capacity and knowledge gaps and emphasized the importance of regional cooperation in addressing shared challenges. Building on these discussions, a set of short-term actions was proposed for ASEAN Treasury Forum 2026 to sustain momentum and further embed climate considerations into treasury functions across ASEAN.
The discussions reinforced the importance of integrating climate risks into treasury functions and highlighted the value of continued regional cooperation to advance climate-responsive public financial management across ASEAN.
