IKEA Foundation and the Rockefeller Foundation have stated that they plan to donate $1bn to fund renewable energy projects in Nigeria, India and other developing countries.
Financial Times reported that both organizations would be donating $500m of risk capital each to fund the project.
The foundation is the charitable arm of the world’s largest furniture retailer, IKEA.UL.
President of the Rockefeller Foundation, Rajiv Shah said, “This can be commercially viable. There is $1bn taking risk upfront that can unlock tens of billions of dollars.
“We are not gambling here. We have seen it work in India. We know what it takes to become successful.”
Chief Executive Officer of the IKEA Foundation Per Heggenes said, “If global energy consumption doesn’t change from fossil fuels to renewable energy, we will not meet the Paris Agreement ambitions and millions of families will be left behind in poverty.
“We need to be honest and recognize that the current approach is not delivering the impact the world needs in the time that we have.”