The IKEA Foundation, philanthropic arm to the Swedish homeware giant, has launched a new philanthropic initiative alongside the ClimateWorks Foundation, in a bid to support communities in the Global South impacted by energy transitions from fossil fuels to renewables. 

The initiative will “support a just, fair, and equitable energy transition with an initial focus on Indonesia, South Africa, and Vietnam”, IKEA Foundation and ClimateWorks said in a joint statement. 

The IKEA Foundation says it will provide $20 million seed funding over four years that will go towards a ‘just transition’ plan created with community voices, to encourage local climate action. 

Plans to reskill workers and offer alternative sources of livelihood is part of the transition process that will seek to minimise economic, social, and political hardship.  

“Successfully addressing the climate crisis requires a rapid, significant and sustained fall in global emissions. However, large numbers of workers and communities across the Global South are dependent on high-carbon industries for their livelihoods,” said Per Heggenes, IKEA Foundation CEO.  

“Without the necessary support to these communities, countries will be unable and unwilling to transition to renewable energy,” he added. 

“As global economies move away from polluting fossil fuels, we need just energy transitions that leave no one behind,” said Helen Mountford, president and CEO of ClimateWorks Foundation.  

“The IKEA Foundation’s generous grant provides the opportunity to support strategies that put affected workers and communities at the heart of climate action and clean energy development in the Global South. This initiative is unique in its ability to champion fair and equitable outcomes for all involved in a fast-changing energy landscape.” 

Since 2008, ClimateWorks has granted over $1.7 billion to more than 750 grantees in over 50 countries, while the IKEA Foundation has granted more than €1.8 billion since 2019.  

The intervention addresses some of the concerns raised by Gbenga Oyebode, chair of the Africa Philanthropy Forum, with fears that demands for action on environmental protection and climate change could slow down economic growth in the Global South and thus undermine wealth creation in emerging economies.  

In the context of the UN’s social development goals (SDGs), foundations should also face scrutiny in how they approach the trade-off between development and human rights. For example, the Gates Foundation has supported and recognised the work of the Indian government on its major sanitation programmes. 

For more on SDGs, read our latest editorial from Charles Keidan, editor at Alliance, into what progress has been made on SDGs since 2015.  

Shafi Musaddique is news editor at Alliance magazine.