Emerging economies are the future, especially in the automotive sector. By 2025, the main demand for cars, trucks, buses and two- and three-wheelers will be in developing countries, and there are already those who are concerned about steering growth in the direction of electric mobility. The IKEA Foundation has decided to finance the Drive Electric campaign with $100 million USD, whose partners also include the European Climate Foundation.

The aim is to support lobbying efforts and campaigning for the transition to electric vehicles in Africa, Latin America and South-East Asia as part of an initiative called 'Extraordinary Partnership'.

Reducing emissions

Edgar van de, portfolio manager for real economy at the IKEA Foundation, justified the choice as follows: "Road transport accounts for about 15 per cent of energy-related greenhouse gas emissions, so if we are serious about achieving a global transition to 1.5 degrees of global warming, then we cannot reduce emissions without it.

Collectively, the subsidy could help save about 43 gigatonnes of carbon dioxide equivalent (CO2e) by 2050 in countries including Brazil, Mexico, Indonesia and South Africa, the Drive Electric Campaign said.

"Electrification of road transport is one of the main leverage points that could help reduce emissions in more than 10 sectors of our economy," van de Brug added.

The social benefits

This grant is one of the largest charitable donations ever made by the IKEA Foundation and will support several local partners. The spread of electric vehicles can indeed benefit the economy at large by accelerating the development of batteries.

"We know that communities are already experiencing the benefits of electric mobility, from drivers saving money on fuel to public transport workers breathing cleaner air," said Rebecca Fisher, director of the Drive Electric programme. "Now is the time to build on the momentum of electric vehicle innovation with ambitious public policies and strong corporate leadership and partnerships.