Friday, December 26, 2025
IKEA’s commitment to sustainability continues to make waves in the industry with the announcement of a groundbreaking 100 million euro investment aimed at combating climate change. In partnership with , a leading global timberland investment group, IKEA is rolling out a pioneering project in Brazil‘s Atlantic Forest. This project will focus on restoring degraded land and improving carbon storage, marking a bold step in the company’s efforts to mitigate environmental impact and promote responsible forest management.
Forests are among the world’s most effective tools in capturing and storing carbon dioxide (CO₂) from the atmosphere. With this in mind, IKEA has committed to leveraging the natural power of reforestation and forest conservation to help address climate change. The new project, focused on the states of Paraná and Santa Catarina in Brazil, is set to span 4,000 hectares of land, much of which is currently deforested or underutilized pastureland.
This initiative will not only focus on reforesting the land but will also include improving the management of existing forests. The goal is to create a scalable model for future investments in forest restoration that will drive long-term environmental and economic benefits. As Ulf Johansson, Global Head of Raw Materials at Inter IKEA Group, explains, “We recognise our responsibility as a major user of wood, and this project explores how reforestation and responsible forest management can help mitigate climate change by capturing and storing carbon.”
The partnership between IKEA and BTG Pactual Timberland Investment Group (TIG) is crucial for the success of this project. As one of the world’s largest timberland managers, BTG Pactual brings extensive experience in large-scale forest restoration and reforestation efforts. The company has a strong track record of advancing environmental benefits through responsible forest management, particularly in Brazil.
With BTG Pactual’s expertise, the project is designed to have measurable impacts on climate, biodiversity, and local communities. The goal is to show that productive forestry, conservation, and restoration can not only coexist but thrive together. Gerrity Lansing, Head of BTG Pactual TIG, expressed his support, stating, “IKEA is showing the kind of leadership we need much more of, and we’re proud to partner with an organisation that shares our commitment to creating lasting positive outcomes for climate and the environment.”
The Atlantic Forest in Brazil is one of the world’s most endangered ecosystems, with only 13% of its original area still intact. The region is crucial for global biodiversity, hosting an array of species found nowhere else on Earth. This project will restore portions of the 4,000-hectare land to its natural forest state, while also converting some areas into productive pine farms. These farms will play an important role in providing economic activity for local communities while supporting the restoration efforts.
The focus on pine farms is integral to maintaining a balance between conservation and commercial activities. By adhering to the Forest Stewardship Council™ (FSC) standards, IKEA and BTG Pactual aim to ensure that the land is not only environmentally sustainable but also economically viable for future generations. This approach will create job opportunities and long-term economic growth for the surrounding communities.
To ensure the project’s success, IKEA will closely monitor its impact on carbon uptake, biodiversity, and water and soil quality. Independent verification will be conducted to assess the actual carbon removal and the broader social and environmental benefits. An advisory panel made up of experts will provide guidance on the project’s progress, helping to shape the impact criteria and strengthen community engagement.
Miriam Prochnow, Co-Founder of Apremavi, an NGO focused on environmental conservation, stressed the importance of careful planning. She noted, “We are pleased to collaborate with IKEA on this project, especially considering the sustainability aspects of the initiative, focusing on the conservation of biodiversity and water resources.”
IKEA’s investment in forest restoration aligns with its broader climate goals. The company has set an ambitious target to reduce its emissions by half across the entire value chain by 2030, compared to the baseline year of FY16. Furthermore, IKEA aims to achieve net-zero emissions by 2050. These efforts are part of a larger strategy to enhance carbon removal and support climate mitigation initiatives.
By taking meaningful action in forest conservation and restoration, IKEA is demonstrating leadership in the timber industry and showing that businesses can take proactive steps to combat climate change while fostering sustainable economic growth. The collaboration with BTG Pactual is a testament to the power of partnerships in achieving large-scale, impactful results for the environment.
This pioneering project is more than just a one-off investment; it represents a scalable model for future climate-focused initiatives. By successfully implementing this project in the Atlantic Forest, IKEA and BTG Pactual hope to inspire other companies to follow suit and invest in forest restoration as a means of combating climate change.
As the world continues to grapple with the environmental challenges posed by climate change, projects like this serve as beacons of hope, demonstrating that responsible forest management, reforestation, and economic development can go hand-in-hand. IKEA’s initiative sets a powerful example for the timber industry and other sectors to follow, showing that sustainability is not just a buzzword but a necessary path forward for the future.
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Tags: Atlantic Forest, biodiversity, brazil, carbon removal, carbon storage, Climate change, forest conservation, IKEA, reforestation, responsible forest management, sustainability, timber industry
