Michigan has a goal to reach carbon neutrality by 2050. In April 2022, the MI Healthy Climate Plan (MHCP) was released, which laid out a pathway for Michigan to meet this goal. The MHCP is centered around six pillars: environmental justice, electricity, transportation, building decarbonization, industry, and natural and working lands. These pillars are the foundation for Michigan’s carbon-neutral future. 

As the plan has taken shape over the past four years, federal funding has become increasingly uncertain, and the question that remains is how the MHCP will be paid for. Four master’s students at the University of Michigan School for Environment and Sustainability (SEAS) provided guidance on where the funding could come from through their capstone project, Funding the Michigan Healthy Climate Plan. 

Marianna Coelho Uchoa (MS ’26), Anisa Farrell (MS ’26), Jonathan Rosales (MS ’26) and Maria Sandoval (MS ’26), along with their advisor Samuel Stolper, SEAS associate professor, worked with the Office of Climate and Energy under the Michigan Department of Environment, Great Lakes and Energy to develop funding strategies to implement the MHCP. 

Initially, the students focused on analyzing the costs that would be required for Michigan to achieve the MHCP. The team conducted a cost-benefit analysis of transportation, where they evaluated the contribution that reducing greenhouse gases would have towards the MHCP. However, the team had to be flexible and adapt to changes. “Funding being lost at the federal level meant we had to get creative,” says Farrell. 

The team pivoted from analyzing costs to identifying funding sources and mechanisms that the Office of Climate and Energy could use to fund the MHCP. “We tried to find as many sources of possible funding to fill in the gaps for the policy that’s listed out,” says Sandoval. The team’s final deliverables include a report for the Office of Climate and Energy that includes a funding strategy and policy recommendations for implementing the MHCP. 

The team utilized the shift in their project as an opportunity to expand their knowledge of Michigan’s climate finance systems through various stakeholder interviews. They spoke with green banks, transportation experts and state partners to gain more context. “Interviews were helpful for gaining insight and background knowledge,” says Coelho Uchoa. It was through these interviews that the students learned about green banks. Green banks are financial institutions that facilitate investment in low-carbon and climate-resilient projects that speed up the climate transition. 

Michigan Saves is a green bank the team identified as a potential asset for providing funding for the MHCP. “Michigan Saves has the potential to fund clean energy transportation efforts if it could shift its priorities to more sustainability efforts,” Rosales says. The students also investigated the potential for the Office of Climate and Energy to utilize green bonds or municipal bonds, which, according to the team, other states have utilized to fund clean energy projects.  

The team credits their advisor, Sam Stolper, for helping them navigate working with their client and keeping the project on track. “Sam really provided us a lot of guidance, and it has been good having an involved advisor,” says Coelho Uchoa. 

As Michigan works to fund carbon neutrality by 2050, the team hopes its work will contribute to making this ambitious goal a reality.