Despite the devastating impact of climate change, less than 2% of philanthropic capital is directed towards climate mitigation. This allocation needs to be scaled fast. But, says Systemiq’s founder Jeremy Oppenheim, it also matters where and how philanthropy uses its capital.
Following the IKEA Foundation’s announcement that it will deploy an additional €600m for climate by 2025, to a total of €1 billion, we look at how research by Systemiq and RMI helped to identify the high-impact opportunities.
Shifting to alternative and plant-based proteins, supporting the market for electric two- and three-wheeled vehicles and providing targeted financial support for fair and inclusive clean energy access: these are among the highest-impact opportunities that global philanthropy can seize upon in the fight to reduce greenhouse gas emissions.
The research was commissioned by the IKEA Foundation, and conducted in collaboration with RMI, a non-profit organisation working to accelerate the clean energy transition. The foundation hopes that targeting the ‘big wins’ in this field can inspire other philanthropies to increase the resources they dedicate to climate.
”As the world gathers for COP27, we are reminded of the urgency of the climate crisis we face…Successfully addressing this challenge will require unprecedented collaboration, between governments, the private sector, civil society organisations and, of course, philanthropies.
Per HeggenesCEO, Ikea Foundation
The research considered five systems in which the consumption and production of GHG emissions needs to be transformed to limit global warming to 1.5°C: energy & power, food & land use, industry, transport, and buildings. It identified the key levers of change and high-impact opportunity areas within these systems, based on their potential to significantly reduce GHG emissions by 2030; the near-term viability of the technology required to meet the potential; their cost-effectiveness; and the ‘value add’ global philanthropy could provide in encouraging and maximising impact. Some of the opportunities identified are:
- Providing targeted financial support to a fair and inclusive energy transition
- Creating a market for minimizing upstream methane emissions
- Creating the capacity for peatland protection/ restoration projects at government level
- Stimulating a shift to alternative and plant-based protein
- Creating the market & enabling environment for reducing methane emissions in agriculture
- Invigorating efforts to strengthen value chains which can reduce losses
- Supporting the market for electric two- and three-wheelers through operations and financing innovation
- Space cooling in emerging economies
