Purpose: This paper aims to study the mechanism of how the public universities have funded the campus sustainability projects in China, by identifying key actors and examining the processes. Design/methodology/approach: Besides a review of campus sustainability initiatives at higher education institutions in China, the case of Central University of Finance and Economics (CUFE) is selected to provide an empirical understanding of the campus sustainability management in a typical university. Findings: The paper points to dominant roles played by the state ministries in financing university conservation programs and the absence of a national policy framework and low sustainability proactiveness in a majority of higher educational institutions. It argues that more discretionary power and more policy deliberations are needed for the transformation. Research limitations/implications: Universities in China vary distinctively in status, operations and performance. In terms of campus sustainability management, the case of CUFE is highly representative as it shares more common features with universities that develop in a routine manner. Practical implications: With the financial support from government agencies, the campus conservation-oriented projects have been conducted and financially supported in hundreds of pilot universities, but failed in diffusing to more universities. This study identifies the barriers and challenges. Social implications: An in-depth understanding of the working mechanism in financing university sustainability initiatives will promote a discussion on China's policymaking process and will provide useful insights regarding its future policy options. Originality/value: China has conducted nationwide conservation-oriented campus constriction for almost a decade and many universities increase their investment in campus facilities and their operations; however, there is a lack of understanding of the rationale of the funding models and how they have been implemented.