Climate Action

New partnership supports bold climate action in Indonesia

The IKEA Foundation and ClimateWorks Foundation are launching a new $12 million partnership to speed up climate action in Indonesia.

Indonesia is among the largest emitters of greenhouse gases in the world. Its current policy ambitions are considered highly insufficient for alignment with the Paris Agreement. Indonesia is also a regional economic superpower and developments there impact the whole region. Progress in Southeast Asia is essential to reach the Paris Agreement targets.

There are positive signals that Indonesia is beginning to take serious steps to mitigate climate-related risks. It has advanced the timeframe for its net-zero target, planned how it will phase out its coal fleet and reduced its rate of deforestation for four years in a row. It has also rolled out a modest carbon tax and signaled that it is ready to be a leader on electric vehicles (EVs).

That’s why it is a critical time to support experts and climate leaders in Indonesia who are working hard to turn this ambition into sustained action. We believe that by helping to build a low carbon future there, we can also improve the health and livelihoods of people in the world’s largest Muslim democracy.

Supporting policy progress

Early strategic priorities were developed in collaboration with other climate funders supporting the transition to net-zero in Indonesia. Our new partnership with ClimateWorks will focus on supporting policy progress in the economic sectors that use the most energy: transportation, buildings, appliances and heavy industries.

These sectors currently do not receive philanthropic support in proportion to their potential to reduce emissions. They can also deliver tremendous benefits in terms of pollution reduction, improved health and comfort, climate resilience and economic competitiveness.

Our partnership will also engage the business and investment communities to show that ambitious climate action is the best way for Indonesia to attract investment and jobs, reduce risk and boost competitiveness.

Meaningful climate action

Despite ongoing challenges, climate leaders in Indonesia are optimistic. Positive shifts in finance, corporate risk perceptions and policymaker ambition are coming together to sustain meaningful climate action. At the same time, technologies to enable the transition to a zero-carbon economy are becoming more affordable.

The IKEA Foundation and ClimateWorks are excited to support an ecosystem of funders, businesses, financial institutions, policymakers and civil society organisations to work towards this transition.

To find out more about the partnership, read this blog by Colin Kelly, ClimateWorks Associate Director, and Edgar van de Brug, Programme Manager, IKEA Foundation.