New York City, New York, USA
A Data-Driven Process to Reach Net Zero Emissions: Climate Budgeting
Project Type:
Health and Wellbeing, High-Performing Government, Youth Development
At a Glance
100% of City agencies have already submitted emissions impact data with all capital project budget requests
April 2024: When NYC will publish its first Climate Budget.
$4 billion: Amount the City will invest in a school electrification plan, which will contribute a 3% reduction in greenhouse gas emissions from government operations.
Climate Budgeting to Help Reach Zero Net Emissions
New York City has a goal to reach net-zero emissions citywide by 2050.
To reach that goal, city leaders must put data at the heart of day-to-day operations. One way the City is doing this is through a new municipal climate budget. As part of the climate budget, the City bolstered requirements for capital project budget requests to include projected emissions data, which are now being met by 100 percent of city agencies, contributing to a 27 percent reduction in greenhouse gas emissions from government operations.
“Climate budgeting is a significant shift in how we think about the value of tax dollars and their potential to power change. It’s the only way to use every budgeting decision to bring our climate ambitions to life. There’s no time to waste.”
Climate budgeting is a governance system that mainstreams climate targets and considerations into decision-making through the budget process and aligns the City’s resources with its climate goals. It is a paradigm shift from the traditional budget process to a holistic approach that considers the impact of every dollar the City spends on meeting its climate goals.
NYC’s climate budgeting is a core component of the City’s strategic climate plan announced in 2023 and is being led by New York City’s Office of Management and Budget, in partnership with the Mayor’s Office of Climate and Environmental Justice (MOCEJ).
An early example of climate budgeting can be seen in the “Leading the Charge” initiative, a $4 billion plan now in motion, to ensure newly constructed schools will be all-electric and 100 existing schools will begin to phase out fossil fuel heating systems. The initiative will prioritize schools in low-income as well as predominantly Black and Brown communities which are particularly vulnerable to environmental injustices such as elevated rates of childhood asthma. The electrification plan illustrates how NYC is using emissions data to combat climate change and disaggregated demographic data to promote equitable health outcomes.
How else has NYC become a more data-driven government?
- Created a centralized Chief Efficiency Office with Chief Performance Officers embedded in city agencies.
- Launched NYC Speaks to increase resident engagement and secure more qualitative data.
- Developed an AI Action Plan to evaluate tools, risks, and the responsible implementation of new technologies.
- Released a digital version of the Mayor’s Management Report (MMR) and a Capital Projects Dashboard to increase transparency and access to up-to-date metrics on city performance.
As one of the first big cities in the U.S. to adopt climate budgeting, New York City is showing how new decision-making processes can deliver urgently needed change.
In 2024, it will implement a formal climate budgeting intake form for agency budget requests and publish its first Climate Budget alongside the Executive Budget. The Climate Budget will include a citywide greenhouse gas emissions forecast showing progress toward the 2050 net-zero goal, as well as data that shows how capital project plans could affect climate goals such as air quality and heat and flooding resilience. The 100% compliance rate across departments is a positive sign for standardizing climate budget processes and understanding the City’s emissions.
Does climate budgeting make funding decisions more complex? Yes. But the initiative is worth it. It allows New York City to understand the climate impact of dollars spent and then rally around forward-looking projects aligned to must-reach goals.
“By using a data-driven decision approach, our administration is delivering results for New Yorkers in the most efficient and equitable way possible. Data is more than just a spreadsheet — it is a tool to help government better improve services that impact the daily lives of residents. I’m proud that New York City is recognized as an international leader in operations and look forward to continuing to use data to improve the lives of New Yorkers.”