The IKEA Foundation, a strategic philanthropy funded by IKEA owner INGKA Foundation, announced today plans to deploy €600 million in climate funding by 2025. Key areas of deployment identified by the foundation include stimulating a shift to alternative and plant-based proteins, and reducing methane emissions in agriculture.
The commitment forms part of a €1 billion pledge announced last year by the IKEA Foundation to fund climate change programs, of which €400 million has been earmarked for the Global Energy Alliance for People and Planet (GEAPP), which focuses on the clean energy transition in developing countries.
For the remaining €600 million, the foundation commissioned research to identify the highest impact interventions for philanthropy to reduce emissions. The research, conducted in collaboration with the system change company, Systemiq and clean energy transition-focused non-profit group Rocky Mountain Institute (RMI), was unveiled at the COP27 climate conference.
Per Heggenes, CEO, IKEA Foundation, said:
“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.”
In addition to shifting to alternative proteins and reducing agricultural emissions, the research identified several other high impact opportunities for philanthropic deployment, including targeted financial support to a fair and inclusive energy transition, creating a market for minimizing upstream methane emissions, developing the capacity for peatland protection/ restoration projects at government level, supporting efforts to strengthen supply chains to reduce losses, supporting the market for electric 2 & 3 wheelers through operations and financing innovation, and space cooling in emerging economies.
Jeremy Oppenheim, Founder of Systemiq, said:
“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.”
Lena Hansen, Interim Chief Program & Strategy Officer, RMI added:
“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.”