Ahmedabad Municipal Corporation (AMC) Pioneers India’s First Climate-Focused Urban Budget

 

 

1. Ahmedabad Municipal Corporation (AMC) became India’s first urban local body to include a dedicated climate chapter, "Sustainable and Climate Budget," in its budget for FY 2025-26.
2. AMC allocated ₹5,619.58 crore (over one-third of its ₹15,502 crore budget) for climate action.
3. This budget supports a net-zero, climate-resilient city plan aligned with India’s 2070 net-zero target.
    

What is Climate Budgeting?
 

Climate Budgeting is a financial planning approach that integrates climate action into government budgets. It ensures that public funds are allocated to address climate change mitigation and adaptation.
 

Key Components of Climate Budgeting:
 

1. Climate Tagging: Identifying and categorizing budgetary allocations based on their climate impact.
2. Mitigation Measures: Investments in renewable energy, energy efficiency, and emission reductions.
3. Adaptation Initiatives: Funding for disaster resilience, water conservation, and green infrastructure.
4. Monitoring & Evaluation: Tracking climate-related expenditures and assessing impact.
5. Policy Integration: Aligning climate goals with urban planning and governance.
6. Stakeholder Engagement: Involving citizens, NGOs, and private players in climate action.
    

Climate Budgeting in Indian Cities:
 

Apart from AMC, the Brihanmumbai Municipal Corporation (BMC) has also engaged in climate budgeting:
 

1. In June 2024, BMC published its inaugural Climate Budget Report for FY 2024-25.
2. It allocated ₹10,224.24 crore, accounting for 32.18% of its total capital expenditure budget, to climate-related initiatives.
3. The budget primarily focuses on urban flood management, water resource conservation, and waste management.
    

Global Examples of Climate Budgeting Oslo, Norway: Pioneered climate budgeting in 2017 as a tool to systematically track and reduce carbon emissions. Sets annual emission reduction targets alongside financial allocations. E.g., Oslo’s budget funds electric public transport, low-emission construction sites, and urban green spaces to reach net-zero by 2030. New York City, USA: Introduced climate budgeting in 2021, integrating sustainability into financial planning. Focuses on climate resilience, renewable energy, and emissions reduction. E.g., NYC’s $4 billion Green Bond program funds clean energy, flood protection, and energy-efficient public housing. London, UK: London’s climate budget aligns with its goal of becoming a net-zero city by 2030. Invests in clean transport, energy efficiency, and climate adaptation projects. E.g., the Ultra-Low Emission Zone (ULEZ) policy is funded through climate budgeting to reduce vehicle emissions.

 

What other roles are played by local bodies India to promote climate action?
 

1. Localised Climate Strategies: Climate impacts vary based on geography and socio-economic conditions, making local interventions more effective.
   • E.g., Chennai Corporation launched a flood-resilient urban planning initiative after the severe 2021 floods.
2. Disaster Preparedness & Response: Local bodies act as first responders to extreme weather events like heatwaves, cyclones, and droughts.

• E.g., Odisha’s Panchayati Raj institutions played a crucial role in the Cyclone Fani evacuation (2019), which helped in minimising casualties.

3. Sustainable Urban Planning: Municipal bodies integrate climate resilience into infrastructure and zoning regulations.

• E.g., Surat Municipal Corporation implemented climate-proofing for housing in flood-prone areas.

4. Promotion of Green Energy & Mobility: Cities encourage renewable energy adoption and eco-friendly transport solutions.

• E.g., Delhi’s EV policy promotes electric buses and charging infrastructure to reduce emissions.

5. Use of Indigenous Knowledge for Adaptation: Local governance leverages traditional climate-resilient practices.

• E.g., Zabo farming in Nagaland conserves water and enhances soil fertility in hilly terrain.
   

Enhancing Climate Action Among Local Bodies:
 

1. Strengthen Climate Finance Mechanisms: Local bodies need dedicated funds for climate resilience and mitigation.

• E.g., In the USA, New York City’s Green Bond Program raises funds for sustainable infrastructure projects.

2. Integrate Climate Action into Urban Planning: Climate considerations should be embedded in zoning laws, building codes, and transportation plans.

• E.g., Amsterdam mandates climate-resilient infrastructure, including flood-proof buildings and water-absorbing pavements.

3. Capacity Building & Data-Driven Policies: Training officials and using data analytics can improve climate responses.

• E.g., London’s Climate Action Plan uses AI to predict urban heat islands and guide tree-planting efforts.

4. Community Participation & Local Innovation: Engaging citizens and leveraging local solutions enhances effectiveness.

• E.g., Tokyo’s “Green Curtain” initiative encourages residents to grow vertical gardens, reducing urban heat.

5. Public-Private Partnerships (PPP) for Sustainability: Collaboration with industries and NGOs can accelerate climate projects.

• E.g., Stockholm’s PPP-led smart grid project integrates renewable energy into the city’s power supply.
   

Climate budgeting is a crucial step toward sustainable urban governance. While AMC and BMC have taken significant initiatives, more Indian cities must institutionalize climate action in their financial planning. Learning from global best practices can further enhance the effectiveness of local climate policies in India.