IKEA Foundation to Deploy $600 Million for Climate-Related Initiatives

The IKEA Foundation, a strategic philanthropy supported by IKEA owner INGKA Foundation, has announced plans to invest €600 million in climate-related investment by 2025. Key deployment areas suggested by the foundation include promoting a transition to alternative and plant-based proteins and reducing agricultural methane emissions.

The donation is part of the IKEA Foundation's €1 billion pledge to fund climate change projects, of which €400 million has been designated for the Global Energy Alliance for People and Planet (GEAPP), which focuses on the clean energy transition in poor nations.

For the remaining €600 million, the foundation commissioned research to determine the most effective philanthropic measures for reducing emissions. The research, undertaken in partnership with the system change company Systemiq and the non-profit Rocky Mountain Institute (RMI), which focuses on the sustainable energy transition, was presented at the COP27 climate summit.

Per Heggenes, chief executive officer of the IKEA Foundation, stated:

"We recognise that a rapid and sustained decline in global emissions is necessary if the world is to meet its commitment to limit global warming to 1.5 degrees Celsius or below." By sharing our research, we hope to encourage and motivate other philanthropies to increase their efforts to protect the environment during this crucial decade for our planet.

In addition to shifting to alternative proteins and reducing agricultural emissions, the research identified a number of other high-impact opportunities for philanthropic deployment, such as targeted financial support to a fair and inclusive energy transition, creating a market for minimising upstream methane emissions, developing the capacity for peatland protection/restoration projects at the government level, and supporting efforts to strengthen supply chains to reduce losses.

Jeremy Oppenheim, Systemiq's founder, stated:

Less than 2% of philanthropic funding is allocated to climate mitigation. This allocation must be increased rapidly. But this is not simply a game of quantity. It is important where and how philanthropy invests its funds. The methodology we created with the IKEA Foundation and RMI could be the key to enabling foundations to prioritise the actions with the greatest potential to cut emissions and rapidly deploy funding."

RMI's Interim Chief Program & Strategy Officer, Lena Hansen, added:

"Collaboration is essential for implementing solutions that trigger catalytic tipping points and limit global warming to 1.5°C," RMI commends the IKEA Foundation for sharing this research with the world, and we hope it sparks bold collaboration to speed the development of solutions to the climate challenge."