Institutionalising Climate Action: Coimbatore Launches Climate Budget 2026–27
Coimbatore formally introduced its Climate Budget (2026–27) on 17 February 2026, becoming the second city in Tamil Nadu, after Chennai, to take this significant step. Through this budget, Coimbatore City Municipal Corporation has incorporated a dedicated chapter on climate-related allocations within its annual municipal budget, marking a critical milestone in institutionalising climate-responsive governance at the city level.
Under the guidance of the Directorate of Municipal Administration (DMA), and through the Swiss Agency for Development and Cooperation-funded CapaCITIES project, Coimbatore has also operationalised a City Climate Action Cell, embedding climate governance within the Corporation’s institutional framework.
The Climate Budget integrates climate-related projects across key sectors, including:
● Water resource management and revitalisation
● Urban greening and biodiversity enhancement
● Heat mitigation measures
The total climate-tagged allocation for FY 2026–27 stands at approximately ₹650 crore, accounting for approximately 13% of the Corporation’s overall budget.
This milestone demonstrates Coimbatore’s leadership in localising climate action and embedding climate resilience directly into municipal finance. It sets a strong precedent for cities across Tamil Nadu and beyond.
@ICLEISouthAsia is proud to have supported the strengthening of institutional mechanisms and processes that integrate climate budgeting into the city’s planning and financial systems.
Building on our experience supporting Ahmedabad when it introduced its climate budget last year, we are encouraged to see more cities institutionalising climate finance frameworks. ICLEI South Asia is committed to continue supporting cities in strengthening climate governance, advancing resilience, and mainstreaming climate action into urban planning and budgeting processes.
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