After users have taken 40 photos, the company said, they can dispose of the camera with their other recyclable materials.
The camera, which will not be sold but rather given away in selected Ikea stores, is aimed at getting Ikea customers to share images of their furniture on the chain's Web site.
The device, which used two AA batteries, can connect to a computer with help of a swing-out USB connector to download its photos.
Offering the camera, dubbed Knappa, was not "a move into selling any digital equipment," an Ikea spokesman told the BBC.
"It is part of the launch activities for the new furniture collection," he said.
Ikea has introduced other green initiates in the past, including installing solar energy panels on one of its stores in California.