Ikea’s parent company is to invest an additional €200m (£171m) in green energy and forest planting as part of a plan by the world’s largest furniture retailer to become carbon neutral by 2030.

The investment is being made by Inter Ikea Group, the owner of the Ikea brand which is operated by a string of franchise businesses, the largest of which is Ingka Group.

Inter Ikea Group said its €200m investment would be released in two phases.

The first phase of €100m would be directed towards new renewable energy projects including heating, cooling and electricity generation. The group said investment would be in partnership with suppliers and directed towards parts of its supply chain where converting to renewable energy was more difficult – such as the textile industry, ceramics and glass production.

The second tranche will be aimed at removing and storing carbon through reforestation and responsible forest management. Ikea said it was considering a variety of global regions for reforestation projects.

The group statement said: “It is most likely that we will put an emphasis on projects in tropical and subtropical regions. This is because there is a vast amount of degraded land in need of reforestation, and forests in these regions grow faster making it possible to remove more carbon from the atmosphere.”

Ingka Group, which has previously laid out plans to spend at least €3bn on sustainability investments, said this week that since 2009, it had pumped close to €2.5bn into renewable energy. The group now owns 534 wind turbines and 715,000 solar panels in 14 countries as well as a further 920,000 solar panels on store rooftops.

The company, which operates 374 Ikea stores in 30 countries, has also invested in over 26,000 hectares of forest land, mostly in the US and Lithuania, taking its total ownership of responsibly managed forests to 208,700 hectares (about 2,000sq km) in five countries.

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The group has also invested in a plastics recycling plant, textile and mattress recycling and is trialling the sale of used, patched-up furniture in the UK as part of efforts to become more environmentally friendly.

The investments have put Ingka Group on track to produce as much energy from renewable sources as consumed in its operations by next year.

“We believe that the best way to minimise our climate impact and to contribute to limiting climate change to 1.5°C is mainly by reducing our greenhouse gas emissions – but we also need to remove existing carbon from the atmosphere. We can make a positive difference through our integrated supply chain, our global presence and our forest and climate expertise,” said Lena Pripp-Kovac, chief sustainability officer of Inter Ikea Group.