MAYOR ADAMS CELEBRATES LAUNCH OF NEW YORK CITY’S FIRST CLIMATE BUDGETING PROCESS

 

New York City is First Big City in U.S. to Adopt Climate Budgeting, Joins Elite Group of Global Cities, Including London, Oslo, and Mumbai 

 

Climate Budgeting Will Permanently Embed Climate Considerations Into Budgeting Decisions, Helping to Reach Climate Goals 

New York City Mayor Eric Adams introduced the city’s first-ever climate budgeting publication through the city’s Fiscal Year (FY) 2025 Executive Budget. Climate budgeting is a process that incorporates science-based climate considerations into the city’s budget decision-making process by evaluating how actions and spending today contribute to meeting longer-term climate targets and needs. The process will allow New York City to understand the climate impact of the dollars New York City spends, identify where more effort is needed to tackle climate change, and champion forward-looking investments.  

 

New York City is the first big city in the United States to adopt climate budgeting, joining other elite global cities, such as London, Oslo, and Mumbai, to utilize the process. Now, for the first time ever, climate will be formally integrated into the City of New York’s decision-making to ensure climate considerations are prioritized in all relevant investment decisions. Climate budgeting is a new tool in the city’s arsenal to achieve its stated goal of getting to net-zero emissions by 2050 and bolster its resiliency to extreme heat and flooding.  

 

“Big problems require big solutions, and few problems are as massive as climate change,” said Mayor Adams. “By embedding climate into our budget decision-making, we are changing the very calculus of government spending going forward and acknowledging that climate must be at the forefront of what we do. From this day on, we will have the tools to evaluate the impact of city projects and programs on achieving the city’s climate-related goals. By weighing these impacts — both positive and negative — in the critical early stages of the budgeting process, we will know how each dollar the city spends affects citywide sustainability and resiliency. I look forward to continuing this process and ensuring New York City is a leader in the fight to tackle climate change.” 

 

Starting this year, the New York City Mayor’s Office of Management and Budget (OMB) has embedded new management practices into the city budgeting process. OMB assessed progress toward climate goals and needs, including through the development of the first annual forecasts of citywide and city government emissions through 2050, and first assessment of projects in the city’s capital commitment plan for alignment with net-zero emissions and flood and extreme heat resiliency goals. The process also initiates a requirement that climate data be provided for capital projects and alongside all relevant agency funding requests, and, moving forward, all proposed sustainability and resiliency investments will be centrally reviewed to prioritize for impact and cost-effectiveness. 

 

“I am proud that New York City is prioritizing sustainability and our environment,” said First Deputy Mayor Sheena Wright. “By considering climate in our financial planning, we are not only investing in a greener future for our community but also ensuring that our fiscal decisions align with our environmental goals. This first-in-the-nation approach reflects our commitment to combating climate change and building a resilient, sustainable city for future New Yorkers.” 

 

“Excessive heat, rain, tides, and pollution threaten the foundational strength of New York City, a foundation critically necessary for strong housing, strong schools, and a strong economy,” said Deputy Mayor for Operations Meera Joshi. “Climate budgeting is the most effective and focused way to meet the moment, by mainstreaming climate action into New York City’s daily operations through targeted, considered investments. Through this daily discipline, we will meet our climate goals and, more importantly, ensure the bright New York City future that our children and grandchildren deserve.” 

 

“Climate budgeting is monumental for New York City, a tool that will help to ensure we understand and fully account for the climate impacts of city spending and make investments that advance resilience, accelerate a just transition away from fossil fuels, and progress the city's overall climate goals,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “With this novel, precedent-setting approach, New York City is furthering its position as a global leader in the green economy by leveraging the city's purchasing power to confront climate change, generate economic value, and reach our goal of 400,000 ‘green-collar’ jobs by 2040." 

 

“Climate change is an existential threat to the city’s fiscal stability and infrastructure, and increasingly frequent extreme weather events cause injury and damage and disrupt critical city services. We must be proactive and do our part to take on one of the greatest challenges the city has faced.” said OMB Director Jacques Jiha, Ph.D. “Now, for the first time, through the climate budgeting process, our budget decision-making will include an evaluation of how our investments impact the ability to meet the city’s long-term, ambitious climate goals. Using this data to help make smart and informed choices that reduce our greenhouse gas emissions and strengthen our resiliency will benefit New Yorkers now and for generations to come. I want to thank Mayor Adams for his leadership in making climate budgeting a permanent part of the city’s budget process.” 

 

“There is an old line that says, ‘show me your budget and I’ll show you your values.’ This is a great first step towards a day when our budget fully reflects our commitment to climate action,” said New York City Chief Climate Officer and New York City Department of Environmental Protection Commissioner Rohit T. Aggarwala. “When fully implemented, climate budgeting will ensure that each budget decision incorporates climate as a key aspect of fiscal responsibility.” 

 

“Our climate and our health are interconnected,” said New York City Department of Health and Mental Hygiene Commissioner Dr. Ashwin Vasan. “Addressing climate change will require innovation, ingenuity, and intention. It will also require courageous pragmatism to consistently evaluate what works and pivot based on what is most effective. Climate budgeting promises that the resources we commit have the greatest possible impact.” 

 

 “The climate budget illustrates the critical role a budget office plays in climate planning,” said Mayor’s Office of Climate & Environmental Justice (MOCEJ) Executive Director Elijah Hutchinson. “We cannot phase out our spending on fossil fuels, prioritize investments along with our climate and environmental justice priorities, or identify where we need to target interventions without a climate budget. This first-of-its-kind accounting exercise is a critical first step.” 

 

“Integrating climate budgeting into the city's budget process will lead to better decision-making, both from a cost effectiveness and carbon reduction standpoint,” said New York City Chief Decarbonization Officer and Deputy Commissioner of Energy Management Sana Barakat. “As the city continues to implement decarbonization projects across city government operations, this new approach will be critical in maximizing investments that will further support us achieving LL97 mandates. This is why climate budgeting is transformative and the Department of Citywide Administrative Services is proud to be a partner to OMB on this first-in-the-nation initiative.” 

 

Key findings from the first climate budgeting cycle include: 

 

• The ambitious climate actions the city is taking today puts it on track to achieve science-based emissions targets in 2030, with additional effort required to achieve net-zero emissions by 2050.  
• Private building emissions limits through Local Law 97 are the most impactful action the city is taking, followed by the Green Rides program to electrify for-hire vehicles.  
• New York City government is on track to meet and exceed its own Local Law 97 targets in 2030 through planned investments in energy efficiency, building and fleet electrification, and a commitment to procure 100 percent renewable electricity for its operations.  
• City action, supported by state commitments to transition to a 100 percent clean electric grid and away from gas-powered vehicles, is key to achieving long-term goals. 
• Capital projects that include funding for fossil fuel-powered generators, vehicles, and heating and hot water systems, present key opportunities for the city to continuously evaluate the feasibility of greener alternatives, such as electrification, battery storage, and electric vehicles. 

 

New investments and reallocations in the FY25 Executive Budget and the Capital Commitment Plan act on key initial climate budgeting findings and advance the city’s sustainability and resiliency efforts. To help ensure the success of Local Law 97, the budget allocates $4 million and 36 full-time positions to the New York City Department of Buildings to implement and enforce the law, and $1.27 million per year to continue the Property Assessed Clean Energy Financing program to help building owners make buildings more efficient.  

 

The FY25 Executive Budget also supports reducing greenhouse gas emissions from city facilities by accelerating $1.06 billion into the FY24-FY28 Capital Commitment Plan and supporting a strategic electrification plan for city-owned and -operated facilities to advance the city’s commitment to phase out capital spending on new fossil fuel equipment and infrastructure.  

 

To support the transition to a renewable electric grid by transforming the South Brooklyn Marine Terminal into a leading offshore wind hub, the city has committed to allocating up to $85 million in additional capital to this project.   

 

Climate budgeting analysis will evolve over the coming years to further support strategic investment decisions that bolster resiliency and advance city actions equitably, incorporating new insights gained from efforts funded in the FY25 Executive Budget. Nearly $27 million over the next four fiscal years will enable smart sewer sensors and citywide modeling will inform future targeted flood resiliency investments. MOCEJ will build upon the findings of its recent report and mapping tool to create a plan that details actionable steps to meaningfully address environmental concerns and provide recommendations on how city agencies can design and administer initiatives to support the ability of communities to thrive.  

 

The FY25 Executive Budget also supports additional efforts to make the city more sustainable and resilient, including through investments in sewer siphon cleaning, catch basin replacement, and pumping station upgrades to enable water to better flow through the sewer system (FY24-28, $70.5 million Capital; FY25, $5.9 million Expense); funding to begin work on a Climate Innovation Hub at the Brooklyn Army Terminal (FY25, $10 million Capital); emissions upgrades for NYC Ferries and an electric rapid charging station for the Governor’s Island Ferry (FY24-25, $15.3 million Capital); and purchasing renewable diesel for medium-and heavy-duty vehicles and the Staten Island Ferry (FY25, $22.6 million Expense). 

 

These new investments and reallocations continue the city’s substantial ongoing investments in climate action. Climate highlights of the city’s FY24-FY28 Capital Commitment Plan include:   

• $5.8 billion to reduce greenhouse gas emissions at city facilities; 
• $2.9 billion for coastal resiliency projects; 
• $923 million for green infrastructure to help mitigate inland flooding; 
• $292 million for electric vehicle, ferry, truck, and school bus purchases; and 
• $139 million for tree canopy preservation and expansion. 

 

Leveraging the climate budgeting process, the city will regularly assess available options to achieve the city’s net-zero goal while managing costs and preserving affordability for New Yorkers. 

 

The Adams administration has a proven track record of securing federal funds to advance climate goals. This includes taking full advantage of federal funding opportunities from the Inflation Reduction Act and Bipartisan Infrastructure Law. Since the start of the Adams administration, New York City has secured more than $1.6 billion in federal infrastructure funds and nearly $700 million in competitive infrastructure grant funds from Inflation Reduction Act and Bipartisan Infrastructure Law programs, including the recently-awarded Environmental Protection Agency Greenhouse Gas Reduction Fund announcement, directing nearly $250 million for state and city programs for solar energy.  

 

Last year, New York City published “PlaNYC: Getting Sustainability Done,” the city’s fifth long-term sustainability plan, and MOCEJ recently detailed the city's progress one year into the plan. PlaNYC builds on the prior four plans and focuses on implementing the necessary actions to reduce greenhouse gas emissions, improve quality of life, build a greener economy, and protect New Yorkers — especially the most vulnerable New Yorkers — from climate threats. As part of PlaNYC, New York City is introducing climate budgeting, a new process managed by OMB in collaboration with MOCEJ that permanently incorporates science-based climate considerations into the city’s budget decision-making process, including by evaluating how actions and spending today contribute to meeting long-term climate targets and continuously seeking to align resources with sustainability and resiliency needs.