Ahmedabad Municipal Corporation (AMC) Becomes the First Urban Local Body to Include a Separate Climate Chapter in Its Budget

Ahmedabad Municipal Corporation (AMC) Becomes the First Urban Local Body to Include a Separate Climate Chapter in Its Budget

The Ahmedabad Municipal Corporation (AMC) has introduced a dedicated climate chapter in its budget for the first time, titled "Sustainable and Climate Budget." For the 2025-26 fiscal year, AMC has allocated one-third of its budget to climate action, focusing on implementing the Net-zero Climate Resilient City Action Plan, which aligns with India’s 2070 climate target.

In contrast, the Brihanmumbai Municipal Corporation (BMC) earlier unveiled a climate budget that allocated 33% of its capital expenditure to climate-related projects.

About Climate Budgeting
Climate budgeting is a governance system that integrates climate commitments into the decision-making processes related to policies, actions, and budgets. It involves incorporating climate targets from a city’s Climate Action Plan into the budgeting process and assigning responsibilities for implementation and monitoring across the local government.

Importance of Climate Budgeting for Cities

• Promotes climate-resilient development, reduces emissions, and supports the achievement of global and national climate targets.
• Helps estimate the climate finance gap by analyzing expenditures and encourages innovative financial models to mobilize climate finance.

Role of Local Administration in Climate Action

• Localized Climate Action: Climate change impacts are geographically and socio-economically varied, making localized actions more effective.
  • For example, in 2024-25, Mumbai’s BMC allocated around 30% of its capital budget to address urban flooding.
• First Responders to Climate Change: Local governments are often the first to respond to extreme weather events induced by climate change, such as landslides.
• Access to Local Knowledge: Local and traditional knowledge can be crucial for climate adaptation and mitigation.
• An example of this is the use of Kundi rainwater harvesting in Rajasthan.

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