Ikea և Rockefeller’s $ 10 billion clean energy drive

Ikea և Rockefeller Foundations’s the biggest investment ever in setting up a fund that they hope can fund more than $ 10 billion in small-scale renewable energy projects to lift more than 1 billion people out of energy poverty.

Each fund will provide $ 500 million in venture capital; they hope to raise an additional $ 10 billion from international development agencies this year, before opening up to institutional investors to expand renewable investment in countries such as India, Nigeria and Ethiopia.

“It can be commercially viable. Pre-risk is $ 1 billion, it can open tens of billions of dollars. We do not play games here. We saw it in India. We know what it takes to be successful. ” Rajiv interestThe president of the Rockefeller Foundation told the Financial Times.

Ikea Foundation CEO Per Heggenes said it was a “very powerful” opportunity to tackle the two biggest threats facing developing countries: poverty and climate change.

Investing in renewable energy has become big business in Europe and the United States, but the Ikea-Rockefeller platform aims to do the same with small projects in emerging markets. It aims to develop “distributed” renewable energy projects, not centralized power plants, mainly in the form of mini-solar projects, but also in the form of micro-power plants.

The foundations said they had already signed agreements with the World Bank, the International Finance Corporation, the United States Agency for International Development, and hoped that Ikea’s involvement would open up support for such agencies in Europe.

Their goal is to raise $ 10 billion from development agencies by the end of this year, along with their initial $ 1 billion, and then invite commercial investors to take back individual projects.

Shah said he believes the platform could eventually grow to $ 100 billion, or even $ 1tn, using its “charitable capital as leverage to raise trading capital.”

He said he had seen “many commitments, good intentions, but not many executions” since his time in the Obama administration as an official at the Copenhagen-Paris Climate Change Conference.

“This has the potential to be the most substantial, most funded investment in the dual goal of lifting people out of poverty, but in a climate-like way.”

Heggenes said the Ikea Foundation, founded by a boxed furniture retailer Protect it from ownership և Invest in projects to overcome inequality – saw energy poverty as the biggest obstacle to growth in the poorest countries.

The two foundations aim to reduce 1 billion tonnes of carbon dioxide emissions by the end of the decade and lift և 1 billion people out of energy poverty.

Shah noted that the epidemic delayed development in poorer countries for up to two decades, and that there was a great need to promote ecologically clean countries. “Now is the time to act,” he said.

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