Kyiv, 15 October 2024 – In an effort to address the critical funding gap for mine action in Ukraine, the United Nations Development Programme (UNDP) has released a comprehensive report titled "Enhancing Mine Action Finance in Ukraine." 

Commissioned with support from the governments of the Netherlands, Switzerland, and the United Kingdom, the report explores novel financing solutions aimed as advancing Ukraine's national mine action strategy.

With the Rapid Damage Needs Assessment estimating a mine action funding requirement exceeding U.S. $34 billion, the need for innovative financial is more urgent than ever. UNDP's report proposes two key solutions: a Sustainability-Linked Bond (SLB) and an Outcome-Based Public-Private Partnership (OB-PPP). The SLB would synergize mine action efforts with Ukraine's transition to sustainable agriculture, particularly through organic winter wheat production and “no till” farming practices. The OB-PPP, meanwhile, would integrate mine clearance with solar energy development.

On the launch of the report, Jaco Cilliers, UNDP Resident Representative in Ukraine, said UNDP is committed to fostering innovative solutions that address immediate needs while advancing Ukraine's long-term sustainability goals.

“By aligning mine action with sustainable agricultural practices and renewable energy, we can help drive economic recovery and resilience in Ukraine,” Cilliers said.

Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine, said the Ukrainian government was working to reduce the cost of land clearance.

“Specifically, (we’re doing this) by establishing a demining market, utilizing cutting-edge technologies, and using domestic equipment and machinery for demining,” Svyrydenko said.

“Sustainable funding for these operations must come from innovative financing approaches that we aim to implement together with our partners.”

Report authors Chris Loughran and Camille Wallen emphasize the scale of the challenge: 

“This gap can’t be filled by conventional means,” the authors said. “Linking mine action and sustainability in Ukraine ticks all the boxes and has tremendous potential for Ukraine and its supporters. It’s a double win when demining – which is always a good thing – is linked to sustainable agriculture and energy security, even when a conflict is ongoing.”

The report proposes that the next step involves a detailed sector diagnosis and design analysis using multi-disciplinary project teams. This process would require collaboration among government, investors, finance institutions, and stakeholders from the mine action, energy and agricultural sectors.

By leveraging private sector involvement, the proposed SLB and OB-PPP models aim to meet Ukraine’s strategic needs in mine action, energy, and agriculture, while fostering economic recovery. The report also highlights the need for robust political support and detailed planning to reassure investors of the potential benefits and returns in this conflict-affected context.

In addition, the study advocates for further sector diagnostics and interdisciplinary collaboration to fully implement these financing solutions, emphasizing the importance of derisking and blended financing as key components.

As Ukraine navigates the complexities of recovery and development, these innovative financing approaches represent a significant step towards a safer and more sustainable future.

Background

The report was commissioned by UNDP at the request of the Ministry of Economy of Ukraine and conducted between April and September 2024. Its goal was to explore a broad range of innovative finance options for Ukraine, and scope specific models that could reasonably be taken forward for potential application. It aimed to identify those products and mechanisms that could have the greatest potential to support mine action in Ukraine and contribute to the total funding needed to deliver the national mine action strategy.

Media enquires

Yuliia Samus, UNDP Ukraine Head of Communications; e-mail: yuliia.samus@undp.org