Innovative Finance for Mine Action

*CISR EXCHANGE* Innovative Finance for Mine Action

This article is brought to you by the Center for International Stabilization and Recovery (CISR) from issue 25.2 of The Journal of Conventional Weapons Destruction available on the JMU Scholarly Commons and Issuu.com.

By Camille Wallen [ The HALO Trust ], Peter Nicholas, and Anna von Griesheim [ Social Finance ]

Achieving a world free of landmines will require at least US$1 billion in additional funding. Bridging this gap will require using all available funding sources and maximizing the efficiency of spending. Innovative finance can help achieve both aims by accessing funding not traditionally available for mine action. To explore these options further, the UK government commissioned work to examine the potential roles of innovative finance in mine action. After discussions with a range of stakeholders, a broad consensus emerged around three approaches. First, outcomes finance, whereby funding disburses against independently verified results, such as mine clearance and recovery of activity on cleared land; the focus on results incentivizes effective implementation. Second, outcomes-based public private partnerships, whereby a government transfers land to the private sector conditional on mine clearance, with in some cases the government (or a donor) also subsidizing restoration of productive activity on the land, conditional on achievement of goals such as employment creation. Third, front-loaded funding, whereby donors make long-term pledges of annual funding to mine action; highly rated bonds are then issued to finance more immediate mine action by securitizing the long-term pledges.

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Published: Tuesday, December 14, 2021

Last Updated: Tuesday, January 25, 2022

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