Finance Team

Do you have any follow-up questions on our decarbonization goals?

Present all relevant goals and reduction targets. Provide an opportunity for the CFO to ask follow-up questions to ensure they completely understand the campus’ decarbonization goals.

Do you have questions about the benefits of transitioning to a fully decarbonized campus?

Provide an opportunity for the CFO to ask follow-up questions on the inherent benefits.

Can I provide any more information on project scale and how phased implementation may work?

Provide an opportunity to ask questions on how the transition may be phased and how it will enable progressive funding and returns. Explain the importance of aligning decarbonization efforts with anticipated projects and needs.

Are there any previous projects—e.g., successes or failures—that can inform this transition? How were these projects funded?

Look for missed opportunities and lessons learned. What financing mechanism did the campus use to fund these projects?

Did you encounter any communication barriers during internal and external outreach for funding?

Identify and debunk campus mythologies (“we tried something like that, but it didn’t go so well”) by outlining how your proposed solutions are different.

What campus developments are in the pipeline? How are these projects being funded?

Look for opportunities to align with planned developments and ways to capitalize on existing financing mechanisms to maximize decarbonization opportunities.

What other priorities could conflict with budgeting for decarbonization in the next 10 years?

Are there other major developments in progress or close to implementation that could compete for funds and campus resources (staffing, internal funding, etc.)?

Do we have a debt limit or restriction that could slow down the campus’ decarbonization journey?

Are there any legal or regulatory restrictions on the amount of loans or debt the institution can take on?

How are the projects in the current deferred maintenance backlog being funded?

Come prepared with the current deferred maintenance backlog. Understanding how they are funded and prioritized will enable more effective phasing and implementation.

What are the best ways to understand and align with current capital planning efforts?

Explain how the campus will likely meet its emissions goals and how it may be more cost effective to align with anticipated projects (e.g., to avoid upgrading equipment after repairs or restoration).

What is the financial metrics/evaluation process used by the institution for approving funding for a project?

Examples include projects with a 15-year maximum payback, fixed rate of return, life-cycle cost analysis (LCCA) requirement, etc.

What are the assumptions needed for a life-cycle cost analysis?

Examples include interest rate, profits/overhead, internal rate of return, analysis period, etc.

If an emergency infrastructure problem arose, how would the project get funded?

Emergency projects can sometimes be costlier from a financing perspective. Equipment that could possibly be innovated or upgraded is simply replaced in kind to allow for continued operations. Aligning with decarbonization projects will instead cost less and potentially increase the asset value.

How far in advance do budget requests need to be made? How frequently do they need to be revised?

Know the timeline for requesting (or updating requests) for internal funding.

What financing mechanisms do we currently use to fund building upgrades, thermal and electrical infrastructure upgrades, and energy and carbon reduction efforts?

Are there any external financing mechanisms already being used towards other energy-efficiency projects?

Are living lab initiatives in place? Have researchers requested matching funds for campus projects? If so, can research programs be added to increase funding opportunities?

“Campus as a living lab” programming can invite opportunities for additional funding if it is integrated into the school curriculum or faculty/student research projects.

What are some ways to access campus donors and/ or engage new donors?

Discuss the potential for program development to attract donors and engage alumni who would be interested in funding decarbonization projects across campus. Be sure to partner with your development department as well.

Can the institution take on additional debt to fund these projects? Should we look for off-balance-sheet solutions?

Consider a self-funding energy savings performance contract to avoid accruing interest on financing via energy services companies (ESCOs) as well as associated asset liabilities . Consider public-private partnerships (PPP or P3) and/or energy as a service (EaaS) as an option.

Is the campus allowed to invest endowment capital in campus decarbonization projects that will promise higher operational savings (compared to business-as-usual cases)?

There may be restrictions on investing endowment funds towards campus building and infrastructure projects. Clarify your university’s requirements.

Is there an opportunity to use green revolving funds (if applicable) toward campus decarbonization?

Using green revolving funds towards decarbonization projects may create an opportunity for higher operational savings perpetuating long-term returns.

Are you involved with any peer groups (e.g., National Association of College and University Business Officers, or NACUBO) and are we able to solicit feedback or engage in discussions around funding mechanisms?

Leverage memberships and peer knowledge from other campuses that have already initiated decarbonization. They may have lessons learned from different stages of the transition.

How can phasing both inform and follow funding opportunities?

What are some ways decarbonization plan phasing (central plant, building distribution, building equipment, on-site renewables, storage) can align over a span of 10-20 years with funding opportunities and capital planning?

What decision-makers and stakeholders should we include and engage through the initial planning phase to ensure complete buy-in? At what stages should we include you and your team in these planning efforts?

Update your list of stakeholders to include decision-makers that will influence and approve financial decisions.