For chapter titled ‘Sustainable and climate budget’, AMC has earmarked one-third of its budget for Climate Action for 2025-26 focusing on implementing Net-zero Climate Resilient City Action Plan  aligned with India’s 2070 target.

• Earlier, unlike AMC, Brihanmumbai Municipal Corporation (BMC) unveiled Climate Budget consisting 33% capital expenditure for climate-related projects. 

About Climate Budgeting

• It is a governance system mainstreaming climate commitments into decision-making on policies, actions and budget. 
• This means integrating climate targets from city’s Climate Action Plan into city’s budgeting process and assigning responsibility for implementation and monitoring across city government.

Importance of Climate Budgeting for Cities

• Foster climate-resilient development; curb emissions and aid in achieving global and national climate targets.
• Aids in estimating climate finance gap by analysing expenditures and promote innovative financial models mobilising climate finance. 

Role of Local Administration in Climate Action

• Varied localized climate action: Impact of climate change is geographically and socio-economically varied, making local actions more effective.
  • E.g. In 2024-25, Mumbai (BMC) allocated ~30% of its capital budget to tackle urban flooding.
• First Responder to climate change induced extreme weather events. E.g. Landslides
• Access to local and traditional knowledge for climate adaptation and mitigation. E.g. Kundi rainwater harvesting in Rajasthan.