University of Cambridge to allow fossil fuel companies to donate if it’s ‘millions of pounds’

The University of Cambridge has rewritten its rules for accepting donations from the fossil fuel industry - meaning it can now accept one if it is for several million pounds.

It had placed a temporary ban on fossil fuel donations, under pressure from campaigners, while it considered its approach.

The University Council, the principal executive and policy-making body of the university, has now confirmed that it will not impose a blanket ban.

Instead it will only accept sums from the industry in “exceptional circumstances” - which include “for a large gift, or equivalent value for a research collaboration (usually several million pounds)”.

The new process ensures that the university will not accept research or philanthropic funding from fossil fuel companies whose business models do not align with net zero 2050 (NZ2050), “unless there are exceptional circumstances”.

The university said will adopt external benchmarks to determine whether a company is classified as a fossil fuel company, and whether its business model is aligned with NZ2050 targets.

The “exceptional circumstances” would be decided by the University’s Committee on Benefactions and Legal and External Affairs (CBELA). Any proposal would need to meet the following criteria:

- It is for a large gift, or equivalent value for a research collaboration (usually several million pounds) which could not be obtained elsewhere, and

- The proposal advances the university’s overall academic and institutional aims (for instance the visions of its Schools).

No fossil fuel company is currently understood to have a business model that aligns with NZ2050 targets. Under the new process, the university would not restrict academics’ non-funded collaborations with fossil fuel companies.

The University Council said it is is “aware that some staff and students wish the university to place a blanket ban on funding from all fossil fuel companies”.

However, it says, “a blanket ban may cause tension in relation to academic freedom and freedom of speech. It may also give rise to questions concerning the university’s obligations under charity law”.

Charity law governs the circumstances under which universities and other charities can reject funding: charity trustees may only refuse a donation exceptionally.

The university has been approached for clarification on what impact a complete ban on fossil fuel industry donations would have on academic freedom and freedom of speech.

The university adopted a moratorium on 18 March on new funding from the fossil fuel industry, following a campaign from students and academics, while a review was carried out by Nigel Topping, UN Climate Change High Level Champion for COP26.

The university said it made the decision with "regard to its commitment to address climate change through a transition to a zero carbon world."

The Topping Study considered the impact on the university if it were to end sponsorship and collaboration with fossil fuel companies.

It found about 5.1 per cent of all research and philanthropy funding came from industrial partners, averaging £3.3million per year over the last six years.

Funding from fossil fuel companies made up 0.4 per cent of research and philanthropy funding and 0.1 per cent of the university’s total income, the study said.

The report recommended that the university clarify the existing CBELA process, maintaining discretion but largely relying on simpler tests and third-party analysis. It advised adopting the Science Based Targets initiative definition of ‘fossil fuel company’ to cover companies substantially involved in fossil fuel extraction (but not wholly or partially owned subsidiaries focused on clean technology solutions) and to use clearer external benchmarks to guide its decision-making.