Ministry of Economy names the best innovative options for financing demining in Ukraine
Kyiv • UNN
The UNDP presented a report on demining financing in Ukraine. The most promising options are the issuance of thematic bonds and public-private partnerships that combine demining with the development of solar energy.
The most promising option for financing the demining of Ukraine's territories is the government's issuance of thematic bonds or public-private partnerships. This is stated in a report by the United Nations Development Program (UNDP) based on the results of a study commissioned by the Ministry of Economy, UNN reports.
Details
The ministry explained that it commissioned a study from UNDP to identify tools and mechanisms that could have the greatest potential to support mine action in Ukraine.
The study “Strengthening Mine Action Financing in Ukraine” was conducted from April to September 2024. Experts examined 39 innovative financial products and risk reduction mechanisms.
UNDP is committed to implementing innovative solutions that not only meet immediate needs but also contribute to Ukraine's long-term sustainable development goals. By combining mine action with sustainable agricultural practices and renewable energy, we can contribute to the recovery and resilience of Ukraine's economy
As a result, experts identified two of the most promising approaches:
- Issue by the Government of Ukraine of thematic bonds tied to sustainable development. Half of the proceeds from the bonds are proposed to be used for land cleanup and demining, and half for initiatives to transition to sustainable agriculture. In particular, the development of organic winter wheat production and the introduction of a no-till system.
- A results-based public-private partnership combines demining funding with solar energy development. This mechanism envisages that the private sector will invest in clearing land for solar power plants and building solar power plants, while receiving concessions from the Government of Ukraine and performance-based incentive payments from donors.
The report's authors, Chris Loughran and Camilla Wallen, emphasized that both approaches have the potential to raise additional funding for mine action, as well as revenue for the Government of Ukraine.
The report was prepared with the support of the governments of the Netherlands, Switzerland, and the United Kingdom.
Recall
Ukraine's Economy Minister Yulia Svyrydenko has stated that 34 billion dollars are needed to survey and demine the territories. The government is currently working to reduce the cost of the process and introduce innovative approaches to financing.
