This is the first US city to begin work on a 100% decarbonization plan. It secured $100 million in private financing from private equity partner Alturus to support the effort, a move that may be more effective in tackling emissions than federal and state efforts. Ithaca’s energy efficiency partner BlocPower brought the investors on board to pay the upfront costs of the project. 

According to Ithaca’s sustainability director, Luis Aguirre-Torres, the strategy to fund these climate projects is to not rely on government money but to secure private investment and combine it with incentives from the government. This can reduce the cost of capital and interest rates for project finance. Torres said that Ithaca’s goal is to set the ratio at 1 to 20 for taxpayer versus private investment funding.

Ithaca’s plan will cover electrification projects for 1,000 residential buildings and 600 commercial buildings in the first phase of a total 6,000 building inventory. Buildings are the first target for the city because they represent 40% of its carbon emissions profile. 

Ithaca is currently looking to raise an additional $250 million for further climate projects, including transitioning Ithaca to electric vehicles.