The IKEA Foundation to deploy an additional €600 million for climate by 2025

The IKEA Foundation to deploy an additional €600 million for climate by 2025

16-11-2022 15:59:03 | Door: Bob Koigi | Hits: 187 | Tags:

Shifting to alternative and plant-based proteins, supporting the market for electric 2&3 wheelers and providing targeted financial support for a fair and inclusive energy transition are among the highest impact opportunities global philanthropy can seize upon in the fight to reduce greenhouse gas (GHG) emissions, according to research commissioned by the IKEA Foundation.

The analysis, unveiled during the 2022 United Nations Climate Change Conference (COP27), was conducted in collaboration with the system change company, Systemiq and RMI, founded as the Rocky Mountain Institute, a nonprofit organisation working to accelerate the clean energy transition.

In 2021, the IKEA Foundation announced an additional €1 billion in funding for climate change programmes over a five-year period, with the strategic goal of quickly and significantly reducing global emissions. Of this commitment, €400 million has been earmarked for the Global Energy Alliance for People and Planet launched at COP26. The research conducted with Systemiq and RMI will inform how the IKEA Foundation deploys the remaining €600 million in climate funding.

The IKEA Foundation hopes publication of the research will drive greater investment in climate action efforts by the global philanthropic community, helping to keep alive the goal of limiting global warming to 1.5°C. Analysis by the ClimateWorks Foundation published in the run up to COP27 found that, despite a recent increase in climate philanthropy funding, still less than 2% of global philanthropic annual grants were dedicated to climate change mitigation in 2021.

Per Heggenes, CEO, IKEA Foundation: “We know that a rapid and sustained decrease in global emissions is required if the world is to meet its pledge of keeping global warming at or below 1.5°C. By sharing our research we hope to support and inspire other philanthropies, during this decisive decade for our planet, to step up their ambition to safeguard our environment.”

Jeremy Oppenheim, Founder, Systemiq: “Less than 2% of philanthropic capital goes to climate mitigation. This allocation needs to be scaled fast. But this is not just a volume game. It matters where and how philanthropy uses its capital. The methodology we developed with the IKEA Foundation and RMI could be the critical unlock that helps foundations prioritise the highest impact interventions to reduce emissions and deploy capital fast. The fact that the IKEA Foundation has chosen to open-source this analysis demonstrates their deep commitment to urgent climate action and belief in the catalytic role of a strategically coordinated philanthropic sector. “

Lena Hansen, Interim Chief Program & Strategy Officer, RMI: “Collaboration is critical to implement solutions that set off catalytic tipping points and keep warming to 1.5C. RMI commends the IKEA Foundation for sharing this research with the world, and we hope that it helps spark radical collaboration to accelerate solutions to the climate crisis.”

The research considered five systems in which the consumption and production of GHG emissions needs to be transformed to limit global warming to 1.5°C: Energy & Power, Food & Land Use, Industry, Transport, and Buildings. It identified the key levers of change and high impact opportunity areas within these systems by considering: their potential to significantly reduce GHG emissions by 2030; the near-term viability of the technology required to meet the potential; their cost-effectiveness; and the ‘value add’ global philanthropy could provide in encouraging and maximising impact.

Some of the high impact opportunities identified are:

  • Providing targeted financial support to a fair and inclusive energy transition
  • Creating a market for minimizing upstream methane emissions
  • Creating the capacity for peatland protection/ restoration projects at government level
  • Stimulating a shift to alternative and plant-based protein
  • Creating the market & enabling environment for reducing methane emissions in agriculture
  • Invigorating efforts to strengthen value chains which can reduce losses
  • Supporting the market for electric 2 & 3 wheelers through operations and financing innovation
  • Space cooling in emerging economies

www.ikeafoundation.org

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