Tuesday 22 June 2021

IKEA and Rockefeller Foundation to set up $1bn renewable initiative

IKEA and Rockefeller Foundation to set up $1bn renewable initiative

The IKEA Foundation and the Rockefeller Foundation are joining forces to set up a $1 billion global initiative to catalyse investments in renewable energy to fight climate change and energy poverty in developing countries.

Launching this year, it aims to reduce one billion tons of greenhouse gas emissions and empower one billion people with distributed renewable energy, i.e. green energy generated from sources such as mini-grids and off-grid solutions located near the point of use, rather than centralised sources like power plants.

The initiative, which will be run as a public charity, also seeks to deliver clean and reliable power to the 800 million people worldwide who lack access to electricity and a further 2.8 billion people who have unreliable access to power.

Per Heggenes, CEO, IKEA Foundation said: “If global energy consumption doesn’t change from fossil fuels to renewable energy, we will not meet the Paris Agreement ambitions and millions of families will be left behind in poverty. We need to be honest and recognise that the current approach is not delivering the impact the world needs in the time that we have.

“Our collective ambition is to create a platform that supports renewable energy programmes which can deliver greenhouse gas reductions fast and efficiently and accelerate the energy transition. 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, reduce one billion tons of greenhouse gas emissions and by doing so, we hope to positively impact the lives of one billion people.”

Dr. Rajiv J. Shah, President of The Rockefeller Foundation added: “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.

“Big, bold, and pioneering collaboration and investment is required not only for the short term but also the long term, to galvanise 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.”

Written by

Bruna Pinhoni

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