The Strategist

IKEA, Rockefellers to invest $1B in green energy

06/22/2021 - 04:11

IKEA and the Rockefellers want to set up a joint fund for green investments.

The founders plan to raise $10 billion this year and then increase the capital to $1 trillion, the Financial Times reports. 

According to the newspaper, the founders of the fund would invest half a billion dollars each. The new fund would aim to cut greenhouse gas emissions by 1 billion tons and try to lift more than 1 billion people out of energy poverty in India, Nigeria and Ethiopia.

"It could be commercially viable. The initial risk is $1bn and it could unlock tens of billions of dollars. We are not playing around here. We have seen how it works in India. We know what it takes to succeed," the publication quoted RFF president Rajiv Shah as saying.

In his view, the pandemic has slowed down dramatically the development of poor countries, where there is a need "to stimulate economic growth in an environmentally friendly way".