How Your Tax Dollars Fund Climate Solutions in Your City

Lower energy bills, neighborhoods protected from wildfire season, cleaner air, and infrastructure that can handle a hotter, more unpredictable future — our tax dollars are quietly paying for all of this. We just don't notice it every day.

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While many cities could stand to make climate adaptation and mitigation a more central use for the city budget, there are plenty of ways our dollars show up for our cities. We encourage you to look into your city’s budget and show up for city council meetings and elections to make your voice heard. 

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Here’s how your taxes may be making your city more livable.

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Making Cleantech More Affordable

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City taxes often fund rebates and incentives that help people switch to cleaner options without blowing up their budgets. In Boulder, Colorado, a small climate tax on electricity and natural gas helps pay for energy-efficient building upgrades, solar installations, and clean-technology programs for homes and businesses.

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Cutting Down Emissions

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Some cities use modest tax increases to create dedicated climate funds that can actually move the needle. In 2020, Denver voters approved a 0.25% sales tax that feeds into the city’s Climate Protection Fund, which supports renewable energy projects, electric vehicle charging, building electrification, and clean-energy job training.

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Helping Cities Prepare for Climate Risks

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As wildfires, heat waves, and other climate threats become more common, taxes are helping cities pay for prevention. 

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• In Oakland, California, a voter-approved parcel tax helps fund wildfire prevention work like vegetation management and fire-risk reduction in high-risk neighborhoods.
• NYC’s Cool Neighborhoods NYC program is funded through the city’s broader climate adaptation budget and focuses on heat island mitigation, expanding tree canopy, and cooling center access for vulnerable residents during heatwaves.
• In Marin County (North San Francisco Bay), a county-wide parcel tax funds coordinated wildfire prevention activities such as early detection, warning systems, defensible space creation, and vegetation management across jurisdictions.
• In New Orleans, city tax dollars are being used to finance flood mitigation projects such as upgraded drainage, rain gardens, bioswales, and other green infrastructure.

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Supporting Community-led Climate Projects

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Climate funding doesn’t have to be top-down. In Portland, Oregon, a 1% surcharge on large retailers' funds the Clean Energy Community Benefits Fund, which invests in things like home energy upgrades, rooftop solar, and green job training — especially in communities that have been hit hardest by climate change and rising energy costs.

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Building and Maintaining Community Gardens

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In many cities, parks and recreation budgets funded by local taxes help establish and maintain community gardens within public parkland.

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• The City of Sacramento, California, runs several community gardens through its Parks and Recreation Department, providing city-owned land, infrastructure support, and integration with broader park amenities so residents can grow food and connect with nature right in their neighborhoods.
• Cities like Kansas City, Missouri, also host community garden plots in parks such as Swope Park that are part of the municipal parks system. These gardens strengthen community ties and make productive use of public space funded by local tax revenues.