BMC allocates Rs 20,730 crore for climate action in FY27, climate spending rises to 43 per cent

BMC said its has achieved 77.91 per cent financial progress on its FY 2025-26 climate budget. FILE PIC

The Brihanmumbai Municipal Corporation (BMC) has allocated more than Rs 20,730 crore towards climate-aligned initiatives in its budget for the financial year 2026-27. This marks the third consecutive year of Mumbai's pioneering climate budgeting exercise, making BMC the first urban local body in India to institutionalise a dedicated climate budget.

According to the Climate Budget Report FY 2026-27, Rs 20,730.04 crore of the BMC's total capital expenditure budget of Rs 48,164.28 crore has been identified as climate-aligned, accounting for 43.04 per cent of the total capital outlay. This is a significant increase from the previous year when climate-aligned expenditure stood at Rs 16,321.33 crore (37.81 per cent of the capital budget).

The overall climate budget for Mumbai, including allocations by the BMC and the Brihanmumbai Electric Supply and Transport (BEST) Undertaking, stands at Rs 20,731.04 crore in capital expenditure and Rs 4,632.70 crore in revenue expenditure for FY 2026-27.

The climate budgeting process integrates 24 action tracks across six priority sectors of the Mumbai Climate Action Plan (MCAP) - Energy and Buildings, Integrated Mobility, Sustainable Waste Management, Urban Greening and Biodiversity, Air Quality, and Urban Flooding and Water Resource Management. The MCAP, released in March 2022, aims to transform Mumbai into a net-zero and climate-resilient city by 2050.

Ward-level climate budgeting pilot launched in four Mumbai wards

Key focus areas this year include strengthening urban flooding and water resource management, sustainable waste management (including biomining and waste-to-energy projects at Deonar and Mulund dumping grounds), renewable energy adoption, electric mobility through expansion of electric buses, and urban greening initiatives. Several infrastructure projects related to flood resilience, water supply augmentation, and decentralised waste processing have been prioritised.

In a first-of-its-kind initiative, the BMC has launched a ward-level climate budgeting pilot across four wards in Zone 2 - G-North, G-South, F-North, and F-South. Sensitisation sessions were conducted with ward officials to identify local climate vulnerabilities such as flooding hotspots, heat-prone areas, and infrastructure gaps, and to align proposed interventions with MCAP goals.

The report also highlighted strong implementation progress, with BMC achieving 77.91 per cent financial progress on its FY 2025-26 climate budget.