The Rockefeller Family Foundation and the IKEA Charitable Foundation have decided to create a joint fund to support renewable energy programs, the Financial Times reports.
To begin with, both organizations will invest $500 million in the fund-the the largest funds in their history. However, this year they want to attract $10 billion in it, and in the future increase it to a trillion.
As noted in the article, the initiative does not look completely charitable. The funds noticed that green energy has become a big business in Europe and the United States, and decided to lead the transition in emerging markets.
RFF President Rajiv Shah confirmed that the project can not only contribute to environmental goals but also become commercially profitable. According to him, the foundations have seen examples of such work and know what it takes to succeed.
According to the publication, at the first stage, the joint fund intends to reduce greenhouse gas emissions by a billion tons, as well as to end energy poverty in the territories where more than a billion people live together. Among the countries with such territories are India, Nigeria, and Ethiopia.
Per Heggenes, Executive Director of the IKEA Foundation, noted that the organization will contribute to solving two major problems in developing countries at once вЂ” climate change and poverty.
The IKEA Foundation and RFF reported that they have already agreed with the International Finance Corporation (one of the structures of the World Bank) and the International Development Finance Corporation of the United States.
It is assumed that the participation of such organizations will encourage European companies to join the investment. According to Shah, the coronavirus pandemic has dramatically worsened the situation and prospects of poor countries, so large companies and structures should stimulate economic growth in them in an environmentally friendly way.
Earlier it was reported that one of the problems of green energy was the shortage of qualified workers, which the giants of the industry cannot find.