Climate readiness is integral to fiscal stability. Cities that prioritize climate readiness benefit from long-term cost savings and increased city desirability. To better understand how cities around the nation are tackling the costs of climate change, PICA conducted interviews with city officials about three innovative approaches to financing municipal climate investments: climate budgeting, climate taxes, and bonds for climate-related projects.
This new issue brief explores how varied approaches are setting municipal governments up for long-term success, what the City of Philadelphia is already doing to prepare for climate change, and what the City can learn from its peers. PICA offers some promising practices from municipalities leading in climate preparedness. These include utilizing a climate-related scoring matrix to the budget process and implementing it with a robust centralized or decentralized model, creating climate-focused revenue streams, maintaining an adequate fund balance as a safety net for unexpected climate-related costs, and issuing additional bonds for dedicated climate investments, when appropriate.