In a groundbreaking move, the IKEA Foundation declared its commitment of $100 million to propel the adoption of zero-emission road transport across emerging markets globally.
Over four years, this substantial funding injection is earmarked for a transformative initiative championed by the ClimateWorks Foundation called The Leapfrogging Partnership. This visionary endeavour sets out to curtail approximately 43 gigatonnes of CO2 emissions by 2050 by empowering local visionaries and trailblazers in nations spanning Africa, Latin America, and Southeast Asia to embrace the transition to electric vehicles (EVs).
With the majority of future vehicle demand projected to surge in emerging economies by 2050, the urgency of expediting the production and adoption of EVs in these regions is paramount. The IKEA Foundation underscores the imperative of averting the proliferation of fossil fuel-powered cars, aligning with global climate objectives, and addressing socio-economic disparities.
Edgar van de Brug, spearheading the IKEA Foundation's actual economy portfolio, emphasizes the pivotal role of decarbonizing road transportation through comprehensive electrification. "The Leapfrogging Partnership is poised to catalyze the transition to electric vehicles and drive a swift reduction in emissions from road transport in the forthcoming decades," asserts van de Brug.
Moreover, The Leapfrogging Partnership aims to synergize with the LEAP Fund (Leapfrogging to E-mobility Acceleration Partnership), which has witnessed a threefold expansion over the past three years. During this period, it disbursed $3.4 million to 23 global collaborators, illuminating its commitment to fostering innovation and collaboration on a worldwide scale.
At the helm of this ambitious initiative is the ClimateWorks Foundation's Drive Electric campaign, which endeavours to accelerate the global shift towards EVs. Drawing on insights gleaned from its extensive engagements in over 65 countries, Drive Electric unveils a compelling statistic: more than 30 per cent of the world's transportation demand, spanning trucks, buses, two—and three-wheelers, and passenger cars, is poised for a complete transition to 100 per cent zero-emission vehicles by 2050.
"The next several years present an opportunity for emerging markets to 'leapfrog' over dirty combustion vehicles to sustainable, zero-emission transportation," said Drive Electric's program director Rebecca Fisher.
While strides towards electrification are promising, analysis by BloombergNEF reveals a stark reality: the gap between leading and emerging markets may widen substantially by 2040. Projections indicate a potential discrepancy of up to 45 per cent regarding the share of vehicle fleets comprised of EVs. This underscores the pressing need for concerted efforts to bridge this gap and ensure equitable access to sustainable transportation solutions worldwide.
"More work is needed to support an equitable global shift," Fisher added. "We see potential for the next wave of clean transportation frontrunners in Brazil, Chile, Indonesia, Kenya, Mexico, and South Africa as these countries have a robust mix of commitments to a clean energy transition, political will for climate-smart development policies, and favourable underlying economic and industrial development conditions."
Recent developments this week underscore the momentum building behind corporate EV adoption, particularly among EV100 members such as IKEA. Reports reveal a staggering 57 per cent year-on-year increase in annual EV additions to company fleets within the EV100 network. This surge in corporate commitment underscores the growing recognition of EVs as environmentally responsible choices and economically viable solutions for businesses worldwide.