The IKEA Foundation, a charitable organization formed by the founder of furniture giant IKEA and the Rockefeller Foundation, has created a billion-dollar platform to develop micro-grids and other decentralized energy projects for the 3.6 billion people with unreliable electricity or none at all.
The programme, announced Monday, aims to reduce one billion tons of greenhouse gas emissions by providing clean electricity to replace the dirtier fuels that off-grid communities often use.
The organizations hope the platform will allow for efficient distribution of stimulus capital, at scale, to help local governments achieve their renewable electricity and development goals.
“If global energy consumption does not change from fossil fuels to renewable energy, we will not meet the ambitions of the Paris Agreement and millions of families will be left behind in poverty. Per Higgins, CEO of the IKEA Foundation said
The independent foundation funded by INGKA Foundation, Swedish billionaire Ingvar Kamprad, founder of IKEA.
Rajiv Shah, president of the Rockefeller Foundation, said that after decades of progress, the novel coronavirus has forced people back into poverty, a problem Shah sees exacerbated by the climate crisis.
“Big, bold and pioneering cooperation and investment is required not only in the short term, but also in the long term, to catalyze a better future. That is why we are announcing our biggest commitment to date and are collaborating with the IKEA Foundation to double this investment. Our partnership will unlock the financing and resources necessary to provide clean, reliable and working electricity improving the lives and livelihoods of people everywhere.”
The Rockefeller Foundation will house the platform at RF Catalytic Capital, which the foundation launched in 2020. This allows impact investors and governments to combine their resources.
Separately, retail giant IKEA has moved to small networks in 2020 through its South Australian microgrid initiative at a store in Adelaide.
Keep track of news about minigrids and microgrids. Subscribe to our free Microgrid knowledge newsletter.