By Paul Bean

A Vermont-based sustainability and climate non-profit that received a $50 million federal grant under the Biden administration is said to have ties to the Chinese Communist Party.

An October, 2024 article in The Daily Caller reports that in 2023, “the Environmental Protection Agency (EPA) announced two grant awards to the Vermont-based Institute for Sustainable Communities (ISC) totaling $60 million to serve as a “national grantmaker” for environmental justice projects and a “technical assistance center” for small environmental nonprofits applying for federal grants.”

The ISC, founded by former Gov. Madeleine Kunin, is headquartered on Stone Cutters Way in Montpelier, according to its website. It also has an office in Washington, D.C. 

According to its website, the ISC Supply Chain Hub program in China focuses on improving supply chain efficiency, particularly in the textile and automotive sectors, which account for a significant portion of resource use and operational impacts. ‘Key components of the project include establishing a Supply Chain Academy for e-learning and peer collaboration, as well as launching a Finance Accelerator to support these supply chain improvement initiatives,” the website says.

The Daily Caller article points out the ISC office in China and operates under the supervision of the Chinese People’s Association for Friendship with Foreign Countries (CPAFFC), an entity linked to the Chinese Communist Party (CCP) and designated by both the Trump and Biden administrations as a CCP foreign influence operation. 

CPAFFC in October 2020 was called out by then-Secretary of State Pompeo for seeking to “directly and malignly influence state and local leaders to promote the PRC’s global agenda” (US State Department, October 28, 2020).

The ISC has also collaborated with Energy Foundation China, which reportedly has ties to the Chinese government, and has promoted U.S.-China city exchanges since 2009, including programs funded by USAID. The article suggests these connections raise concerns about the use of taxpayer funds and potential CCP influence.

According to a June 22, 2025 Forbes Magazine article, a 2025 report by State Armor spotlights Energy Foundation China (EFC) “which claims to be a nonprofit headquartered in San Francisco. In reality, its staff are mostly based in Beijing, and its operations align closely with the Chinese Communist Party’s interests. EFC has spent millions supporting anti-fossil fuel groups in the United States, including the Rocky Mountain Institute and the Natural Resources Defense Council.”

The Vermont Natural Resources Council, backers of Vermont’s Climate Superfund law, is not the same organization as the Natural Resources Defense Council. But the VNRC has an advisory committee begun in 2009; among its founding members was Gus Speth, founder of the Natural Resources Defense Council, according to a VNRC history. The history also says the two organizations have collaborated on Vermont water-quality initiatives.

As for ISC, “our approach is rooted in collaboration—bringing together local knowledge and global experience to advance meaningful, measurable progress,” says the ICS website… “Since its founding in 1991 by former Vermont Governor Madeleine M. Kunin and former ISC President George Hamilton, ISC has led transformative projects worldwide. Over the years, we have refined an approach that equips communities to tackle challenges head-on, fostering strong, sustainable growth.”

Since 2007, the ISC has operated in over 30 Chinese cities. Their website states that the nonprofit currently collaborates with 12 Chinese municipal governments and claims to help ‘cut greenhouse gas emissions and air pollutants, supporting local leaders in shaping national environmental policy.’

In 2020, the ISC opened a “Beijing representative office,” requiring oversight by a Chinese government body and registration with Chinese security services. To secure this status, the ISC partnered with the CPAFFC and registered with the Beijing Municipal Public Security Bureau, as noted on its Chinese-language website.