By connecting climate objectives with financial planning and decision-making, climate budgeting helps cities ensure that resources are directed towards actions that support emissions reductions and long-term sustainability goals. It also strengthens transparency and collaboration across municipal departments.
To support cities on this journey, in the autumn 2025 the UBC Sustainable Cities Commission launched the Climate Budget Training Course. Designed for decision-makers, climate and sustainability experts, and financial staff in local administrations, these series combine expert knowledge, practical city experiences, and hands-on learning opportunities.
- Bookmark this course and check the recordings of the four online modules! 132 participants from 27 different cities already joined the online modules.
Module 1: Getting started with climate budgeting
The first module introduced the fundamentals of climate budgeting and its role in supporting climate neutrality ambitions.
Cities are central actors in climate governance and climate budgeting should be seen not merely as a financial tool, but as part of a broader governance framework linking policies, actors, and decision-making processes. Practical examples from Espoo and Aarhus demonstrated how climate considerations can be integrated into municipal budgeting and planning. Participants also received their first introduction to the Climate Action Decision Support (CADS) Tool, which helps cities visualize emissions, compare action scenarios, and align investments with climate targets.
For cities wondering where to begin, this module provides a strong foundation and a clear understanding of the value climate budgeting can bring.
Module 2: Obtaining mandate and setting cooperation
Once the concept is understood, the next challenge is implementation. Module 2 focused on how cities can establish climate budgeting processes that reflect their own governance structures, resources, and local circumstances. This module opened with a presentation of the internationally recognised C40 Climate Budgeting Framework, which defines climate budgeting as a governance system that integrates climate targets into financial planning, implementation, monitoring, and reporting processes across city administrations.
There is no single model for climate budgeting, and cities can enter it at different levels. Cities can start with informal cooperation and dialogue or develop more formal structures embedded within existing budgeting processes. Examples from Tampere, Riga, and Vienna illustrated how internal collaboration, stakeholder engagement, and cross-departmental cooperation help turn climate ambitions into practical action.
Module 3: Climate actions portfolio and emissions data inventory
Effective climate budgeting relies on reliable data. Module 3 focused on emissions inventories, climate action portfolios, and the methods cities use to calculate and monitor progress.
Participants learned how emissions baselines, business-as-usual scenarios, and action-level calculations are developed in practice. Experts highlighted the importance of transparency, shared methodologies, and regular data updates, while also reassuring cities that they do not need to wait for a “perfect” model before getting started.
City examples from Aarhus, Östersund, Riga, and Bytom demonstrated how emissions data can directly support decision-making, with examples from climate action calculations and transport measures to renewable energy investments and the role of natural carbon sinks such as forests and wetlands.
Module 4: Analysing costs & benefits, building scenario and interpreting results
The last online module explored how to evaluate and prioritise climate actions when resources are limited.
Here, participants learn how to assess costs and benefits of different climate actions, compare alternative scenarios, and interpret results to support evidence-based decision-making. The module showcased how the CADS Tool can help cities estimate costs, project savings, compare the effectiveness of different measures, and visualize future emissions pathways.
Examples from Tampere, Aarhus, and Norderstedt demonstrated different approaches to evaluating climate investments including cost-effectiveness analysis, shadow pricing of emissions reductions, and scenario modelling for infrastructure investments such as LED street lighting.
Access available materials and join the upcoming workshop
These four modules provide a practical roadmap for cities interested in climate budgeting: from understanding the concept and building internal processes to working with emissions data and evaluating investment decisions. Is your city only starting its climate budgeting journey or are you looking to strengthen existing practices?
You also have a unique opportunity to apply this knowledge at the hands-on workshop this autumn!
At the city lab in Turku on 1-2 September 2026, cities from across the Baltic Sea Region will come together to share experiences, explore practical solutions, and test the open CADS (Climate Action Decision Support) Tool for climate scenario calculations. Don't miss this opportunity, register and join us!
Climate budgeting is not simply about accounting for emissions. It is about creating a clearer pathway from climate ambition to climate action and ensuring that every budget decision contributes to a more sustainable future.
