Carbon Budget and Accounting Framework

To avoid catastrophic, irreversible climate change and ecosystem losses the world collectively needs to keep global emissions within 400 giga tonnes of carbon dioxide equivalent in order to keep global warming within 1.5 C temperature increase*.

*Intergovernmental Panel on Climate Change (IPCC, 2021). Climate Change 2021 Th…

Hamilton’s Carbon Budget and Accounting Framework is currently a corporate-wide policy that once fully implemented will guide the City’s approach for calculating greenhouse gas emissions from all city-led projects. This standardized and systematic approach will be critical for the City to achieve its long-term climate goals of reaching net-zero emissions by 2050.

This framework was developed through technical calculations using the C40’s Convergence and Contraction Methodology based on a global “fair-share” approach.

Vision

To create a carbon budget framework that unites all of Hamilton in transparent, science-based climate action, empowering all sectors to reduce emissions, and build a sustainable future together.

Guiding Principles:

What is a Carbon Budget?

The definition of a carbon budget is the total net amount of carbon dioxide (CO₂) that can still be emitted by human activities while limiting global warming to a specific level. A carbon budget is like a regular budget—but instead of budgeting to a maximum amount of money, it focuses on the maximum amount of greenhouse gas pollution we can release into the air, with the intent to reduce greenhouse gas emissions over time in order to prevent catastrophic climate impacts.

Hamilton’s Carbon Budget is based the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report which highlights to have a 67% probability of keeping global warming within 1.5˚ C temperature increase the world collectively needs to keep global emissions to no more than 400 gigatonnes.

The global carbon budget is then broken down between:

A community-wide carbon budget which includes all sources of emissions from the community including major sector like Industry, Transportation, Buildings, Solid Waste, Wastewater and Agriculture.
A corporate-wide carbon budget as a function of the community carbon budget and includes corporate emissions from city-owned assets including buildings, fleet vehicles, wastewater treatment plants, and landfills.

Components of Hamilton’s Carbon Budget and Accounting Framework

Hamilton’s Carbon Budget and Accounting Framework is comprised of two corporate-wide policies, combined with detailed processes, tools, calculators, and reporting strategies in order to effectively implement.

Corporate Carbon Budget and Accounting Framework Policy
Outlines high-level responsibility of City staff, City leadership and Council, including the process for implementing the framework;
Corporate Carbon Offset and Credit Policy
Sets the direction and guidelines for how the City of Hamilton approaches corporate carbon offsets and credit trading to ensure consistency in financial and environmental accountability;
Level 1 Standard Operating Procedure
Establishes the corporate-wide standardized approach for implementing the framework including detailed roles and responsibilities, processes and timelines;
Climate and Equity Lens
Building on the Public Works Climate Lens (Version 8) this excel-based tool will provide a tool for staff across the City to qualitatively and quantitatively assess project impacts and considerations for climate mitigation and adaptation;
GHG Calculator for Municipal Projects
Updating existing calculators to include new modules for estimating energy and greenhouse gas emissions of typical municipal projects. Five new modules were developed for Hamilton based on staff feedback on gaps they identified in the existing version of the Calculator. *Note: Other Excel-based GHG calculators include many other existing modules that staff and the public can access.
Project Charter
Updating a standardized Project Charter template, building on Public Works existing updates to incorporate the Climate and Equity Lens into project charters.
Capital Detail Sheets
Updating existing templates to embed climate and equity lens information and scoring criteria as part of the existing prioritization scoring matrix.
Internal Resource Hub and Future External Dashboard
Creating an internal SharePoint and resource hub where templates, training and additional guidance materials will be located. A future external dashboard in consultation with IT and Engagement Team is proposed to enable open and transparent communication with the public on this complex topic.
Annual Reporting
Recommendation that two main reporting avenues be amended. This includes the annual Budget Book which would include a table of proposed projects, either within the Budget Book or as an attached Appendix, that includes project descriptions and associated climate and (future) equity information. The other annual report would be part of the annual Hamilton’s Climate Action Strategy Progress Update Report prepared by the Office of Climate Change Initiatives which includes the community and corporate greenhouse gas inventories and that would also include reporting on the established Key Performance Indicators for the Carbon Budget and Accounting Framework.

Proposed Implementation Timeline

2026-2027 Two-Division Pilot Phase Begin implementing Carbon Budget and Accounting Framework
Q2 2027 Staff Recommendation Report To recommend approach for scaling across the Corporation
2027-2028 Projects >$250,000 Begin with large new capital projects to implement Carbon Budget and Accounting Framework (if approved)
2028-2029 All Capital Projects All capital projects to implement Carbon Budget and Accounting Framework (if approved)
2029-2030 Capital and Operation Projects All new capital and operational projects to implement Carbon Budget and Accounting Framework (if approved).

Date modified

June 10, 2026