Mumbai & Cape Town: A hopeful tale of two coastal cities
ET CONTRIBUTORS November 21, 2025 04:00 AM
Synopsis

Mumbai and Cape Town, two major coastal cities, are facing rising climate risks and are pursuing long-term plans to strengthen resilience. Mumbai, which experiences frequent flooding and is highly exposed to rising sea levels, aims to be carbon neutral by 2050.

Rajeev Gopal

Rajeev Gopal

Mumbai is highly vulnerable to rising sea levels. Severe rainfall and flooding occur regularly, and Mumbai is routinely ranked high on lists of the world's cities most vulnerable to climate impacts. To help address these vulnerabilities, the city has set a goal to become carbon neutral by 2050, ahead of India's national goal by 20 yrs. This includes reducing emissions by 30% by 2030, and 44% by 2040 (from a 2019 baseline).

To achieve these goals, Mumbai launched the Mumbai Climate Action Plan in 2022. Brihanmumbai Municipal Corporation (BMC) has allocated ₹31,775 cr for capex in FY25, with about a third of funds earmarked for climate-relevant activities. About 95% of the money will be channelled towards flooding and water resource management.

The remainder has been allocated to climate-friendly activities such as use of LED streetlights, planting trees to increase the city's green cover, installing rooftop solar solutions to city-owned buildings and new sewage treatment plants. Mumbai has already taken steps like expanding protected mangrove areas, planting trees and investing in public transport electrification.


Now take Cape Town. The South African coastal city is also acutely vulnerable to impacts of extreme weather events and faces a complex set of challenges, including water scarcity, insufficient infrastructure, social equity and overall climate resilience. It has adopted a two-pronged approach: aiming for carbon neutrality by 2050, and outlining a strategy to implement large-scale adaptation measures, including a new water strategy focused on diversifying water sources (desalination, groundwater and water recycling).

Cape Town is drawing on various public and private sources to fund the plan, including green funding instruments such as the city's 2017 green bond and C40 Cities Finance Facility (CFF). International Finance Corporation (IFC) is also supporting the city with an 18-yr, $150 mn loan for infrastructure upgrades and replacements, including to electrical and transport infra, and to expand water, sanitation and wastewater management infrastructure.

Mumbai and Cape Town show that developing cities can make tangible measures towards climate resilience. But how can other developing cities follow their lead?

Awareness

Cities need to join the national dialogue on climate change and make climate a central element of city planning and budgeting. They also need to communicate to citizens the potential effects of extreme weather events, and emphasise the urgency of taking suitable action.

Action plan

Cities should assess their climate footprints and vulnerability, and then prepare action plans to address their mitigation and adaptation needs, with a focus on physical infra, water and electricity, transportation, green spaces and community needs. Action plans need to be aligned with the city's development plan, and must be inclusive by integrating inputs from citizens, government, businesses and academia. It should identify a pipeline of projects for implementation.

Align with national action

National governments should include city representatives when developing national, sectoral and thematic climate strategies, and provide funding and incentives for climate action, especially to smaller and poorer cities.

Build capacity

Cities should create a climate change cell or department, and allocate climate change responsibility within their governance structures. Cities can rely on their national governments for knowledge and resources, and can also benefit from best practices shared by local and global peers.

Allocate resources

Along with capacity building, cities also need to allocate human and financial resources for climate action plans. This can be a challenge, though national governments can support with grants and devolved funds. Cities can borrow domestically from banks and DFIs, issue bonds, turn to commercial lenders and philanthropies, or multilateral development banks and climate funds. Internal sources like municipal fees and fares, and savings from design and efficiency measures, can augment funding sources.

Policy and implementation coherence

The final step - the last, but perhaps the hardest - is long-term commitment. This requires substantial coordination within city agencies, but also with the national government. Implementation needs to be tracked and reported.

Two critical inputs to address the climate resilience challenge for cities are technical expertise and financing. Both are challenges. Cities need to embark on this journey sooner than later, if they are to provide a climate-secure future for their citizens.

The writer is former senior country officer, IFC, World Bank Group
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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