We’re joining forces with the Rockefeller Foundation in a $1 billion initiative to increase investments in renewable energy.
Our joint initiative aims to reduce 1 billion tons of greenhouse gas emissions and empower 1 billion people with distributed renewable energy. This is renewable energy that comes from local sources, such as mini-grids, rather than central sources like power plants.
A global platform, which combines the matching funds from both organisations, will launch this year.
800 million people worldwide still lack electricity. A further 2.8 billion people have unreliable access.
While funding for the energy transition has increased, investors struggle to identify viable projects. This means many emerging economies still depend on fossil fuels.
The new platform will help countries to leapfrog to renewables. At the same time, it will help tackle energy poverty and aid recovery from COVID-19.
Per Heggenes, IKEA Foundation CEO, says: “Our collective ambition is to create a platform that supports renewable energy programmes which can deliver greenhouse gas reductions fast and efficiently.
“We need to replace polluting sources of energy with renewable ones, provide access to energy to communities and unlock further funding for sustainable models. Ultimately, we aim to unite countries and communities in urgent action to tackle the climate crisis. By doing so, we hope to positively impact the lives of 1 billion people.”
Dr Rajiv J. Shah, President of The Rockefeller Foundation, says: “Millions of lives and trillions of dollars have been lost to COVID-19, forcing people back into poverty after decades of progress. The effects of the climate crisis will make this even worse, which is why we must invest now to reverse this downward spiral.”
He added: “Big, bold, and pioneering collaboration and investment is required not only for the short term, but also the long term, to galvanize a better future. That is why we are announcing our largest commitment to date and joining forces with IKEA Foundation to double that investment. Our partnership will unlock the financing and resources that are essential to provide clean, reliable electricity that improves the lives and livelihoods of people everywhere.”