Author: Robert Foley
Published: September 2011
Description: The Green Loan Fund (renamed the Green Revolving Fund) at Harvard University has been an active source of capital for energy efficiency and waste reduction projects for almost a decade. This case study examines the revolving fund’s history from its inception as a pilot project in the 1990s to its regeneration in the early 2000s to its current operations today. The green revolving fund has been a successful self-replenishing tool for encouraging Harvard’s schools and units to invest in projects that generate cost savings and reduce their environmental impacts.
Originally funded by the President’s Office at $1.5 million, the now $12 million revolving loan fund provides capital to Harvard for high performance campus design, operations, and maintenance projects. The fund’s low-interest loans have successfully financed projects that reduced the university’s expenses for electricity, natural gas, water, and waste disposal, along with lowering other operating costs.
The fund has achieved average annual returns of 30 percent, saved the university $4.8 million dollars annually, and reduced Harvard’s environmental footprint.