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Inbuilt analyses universities' sustainability spending

Inbuilt is working with Oakleigh Consulting to review and assess the success of a £30 million green fund that is being given to English universities and colleges.

The HEFCE (Higher Education Funding Council for England) launched its Revolving Green Fund last year with the Minister for Energy and Climate Change. During this time £30 million has been made available from HEFCE and Salix Finance Ltd to provide recoverable grants to higher education institutions to help them reduce their energy use and carbon emissions. To date, nearly half of all universities in England have received grants and will be repaying their funding through the utility savings they are making.

Inbuilt is drawing on its previous university sector experience for the review, gathering evidence to assess the performance of the initiative to date and considering the case for further funding as well as assessing the extent of unmet demand.

It is also looking at how best to share the learning and good practice of the fund to encourage other institutions to apply.

Jont Cole, associate at Inbuilt, says:

"This is a very significant project, reviewing what is nearly 10% of the entire English higher education sector's annual spend. Recoverable grants are a fantastic way of encouraging investment in achieving more sustainable buildings and sources of energy generation. We hope that our work in the review process will encourage more institutions to engage in this agenda and make an application to the fund if more funding is available in the future, as well as demonstrating the true value of what can be achieved to transform energy use in university estates."

Inbuilt and Oakleigh's report to the HEFCE is due for publication in April 2010 and is likely to be used to help assess options for the future funding at the next public spending review.

About the Revolving Green Fund

The total value of the Revolving Green Fund (RGF) is £30 million, with HEFCE contributing £20 million and Salix Finance Limited £10 million. The Fund has two strands:
• An institutional small projects (ISP) fund
• A transformational fund

The ISP fund will use Salix's traditional model where institutions receive ring-fenced money from the fund to be spent on carbon-saving projects. A key principle is that financial savings from funded projects are repaid into the ring-fenced fund held by the institution for re-investment in further projects. Once the original project investment is repaid to the fund, the institution is free to keep ongoing savings. The institution does not have to repay the money loaned while it continues to re-invest savings in eligible projects.

The transformational fund is for HEIs to tackle larger projects which will transform the institution's approach to managing its energy consumption and reducing its emissions. The University of East Anglia, Harper Adams University College and Lancaster University were awarded £10 million in total for large projects that will significantly reduce their carbon footprint and act as beacons of good practice.