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No, certified Peace bonds do not have to be secured.

While the Standard has a global scope, there is a particular emphasis on investments in emerging markets, conflict-affected, and developing regions. However, investments in any region that meet the criteria can be certified.

The creation of the PFS is spearheaded by Finance for Peace, which is predominantly funded by the German Government for the moment.

: Pre-approved Peace Partners play a vital role in the success of peace-related projects. The process for selection is as follows: 

Criteria for Peace Partners: To qualify as a Peace Partner, an organization or entity must have a credible background in peace-related work. This includes a proven track record in peace initiatives, relevant capacities, a strong network, and deep knowledge of the specific context in which they operate.

Diversity of Partners: Peace Partners can range from local organizations deeply embedded in the community to larger intermediary organizations with broader reach. Each type of partner brings unique advantages to a project.

Number of Partners: The number of Peace Partners involved in a project can vary. This depends on the project's scope, complexity, and specific needs. A larger project might require multiple partners to address different aspects of peace-building effectively.

Importance of Local and Contextual Knowledge: Special emphasis is placed on choosing partners who understand the local context and dynamics, as this knowledge is crucial for the success of peace-related projects.

Issuer's Role in Identification: Even though pre-approved Peace Partners will be vetted by Finance for Peace, it is the responsibility of the issuer to identify and select suitable Peace Partners during the planning phase of a project. This selection should be based on a thorough evaluation of the potential partners' experience and effectiveness in peace-building activities. Guidance for selection can be found here (link)

In summary, pre-approved Peace Partners are essential for the effective implementation of peace projects. They are chosen based on their experience, expertise, and ability to contribute meaningfully to peace-building efforts. The selection process is carefully managed by the issuer to ensure the right mix of partners for each specific project.

Become a pre-approved Peace Partner [link to 2.5]

The role of verifiers and evaluators is crucial in ensuring the integrity and impact of Peace Bonds and Peace Equity investments. This process works as follows:

Eligible Peace Finance Verifiers: Verifiers providers can be a diverse group. This includes organizations currently offering similar services for sustainable investments.

Application Process: Those interested in becoming pre-approved verifiers or evaluators can apply through a designated process. This process is designed to assess their expertise, independence, and ability to provide thorough and objective evaluations of Peace Bonds and Peace Equity.

Initial Phase: At the inception of the Peace Finance Impact Framework (PFIF), the appointment of a Verifier might be as straightforward as engaging an independent consultant or organization that has participated in the development of the Framework. This ensures a deep understanding of the criteria and objectives of Peace Bonds and Peace Equity.

Criteria for Approval: The approval process for Verifiers following the initial phase involves a rigorous assessment of their qualifications, experience in sustainable investment, and their ability to provide unbiased and comprehensive evaluations.

Continuous Development: As the PFIF evolves, the criteria and process for becoming a pre-approved verifier or evaluator may also be refined to align with the growing needs and complexities of peace finance.

In summary, a range of qualified and independent organizations and individuals can become verifiers and evaluators for Peace Bonds and Peace Equity. The application process is designed to ensure that these entities are well-equipped to uphold the standards and objectives of the PFIF.

Become a pre-approved verifier [link to 2.4]

The process of verification and evaluation is a critical step in ensuring the integrity of Peace Bonds and Peace Equity investments. This task is performed by pre-approved Peace Finance Verifiers), which are independent entities with the expertise to assess compliance with our standards.

Role of Verifiers: These Verifiers are responsible for verifying that all pre-issuance criteria are met before an issuer can proceed with the sale of the bond or equity. This is crucial to ensure that the investments align with the peace-positive objectives from the outset.

Timing of Evaluation: The verification typically occurs prior to the issuance of the bond or equity (pre-issuance) to ensure compliance with the standards. However, Verifiers also play a role in post-issuance evaluation, continuously assessing the impact and adherence to the standards over time.

Consistency or Variation in Verifiers: Depending on the specific context of each Peace Bond or Peace Equity issuance, the Verifier involved in the pre-issuance phase may be the same as or different from the one in the post-issuance phase. This flexibility allows for the most appropriate and context-sensitive evaluation.

Further Information: For more details about the Peace Finance Verifiers and their role in the verification process, please visit our verifiers page [link].

In summary, the verification and evaluation process is carried out by specialized, pre-approved entities to ensure that every Peace Bond and Peace Equity investment meets our high standards for peace-positive impact, both before and after issuance.

Become a -pre-approved Peace Finance Verifier [link to 2.4]

The Standard applies to a broad range of sectors, with specific exclusion criteria for sectors that are counterproductive to peace-building efforts. Priorities sectors that are highly consequential for investment in fragile and conflict affected settings are found here [link to 1.4.2].

The Standard focuses on the peace-building impact of investments and is not a substitute for financial due diligence. However, certification may enhance the attractiveness of projects to impact investors.

The integrity of Peace Bonds is paramount, and not all companies may be eligible to issue them. It is essential that the projects funded by these bonds genuinely contribute to peace-building and do not contradict our primary peace objectives. To ensure this:

Alignment with the Peace Taxonomy: Companies must align their peace-enhancing projects with our indicative Peace Taxonomy. This taxonomy serves as a guideline to define what constitutes a peace-positive project.

Exclusionary Criteria: There are specific criteria that exclude certain companies from issuing Peace Bonds. For instance, companies involved in major criminal activities are not eligible. These criteria are in place to maintain the integrity and purpose of Peace Bonds.

Comprehensive Information: For a detailed understanding of what projects qualify and the criteria for companies, we encourage you to refer to our Indicative Taxonomy and Exclusionary Criteria [link]. This resource provides in-depth information to guide companies interested in issuing Peace Bonds.

In summary, while we welcome diverse companies to participate in peace-building through Peace Bonds, they must meet specific criteria to ensure their contributions align with the intended peace objectives.

Issuers are required to provide regular reports on the impact of their investments, adherence to the Standard, and any changes in their project's scope or objectives. This ensures ongoing compliance and transparency.

The Standard covers a wide range of investments that contribute to peace-building, including but not limited to projects in conflict-affected areas, initiatives promoting social cohesion, and investments that address key drivers of conflict.

The foundation of the Peace Finance Standard stems from ICMA Social Bond Principles and Sustainability Guidelines, the Climate Bonds Standard (CBI) and the Operating Principles for Impact Management. However, the unique elements that make the PFS appropriate for peace building and enhancing are conceived the culmination of extensive collaboration and valuable insights from a diverse group of stakeholders. This inclusive approach ensures that the Standards are practical, impactful, and widely applicable.

The Standard is overseen by a diverse and balanced Standards Committee, comprising experts from both the finance and peace-building sectors. This ensures a broad range of perspectives and maintains the integrity and independence of the Standard.

Issuers benefit from enhanced credibility and investor confidence, access to a growing market of impact investors, and the opportunity to contribute meaningfully to global peace-building efforts. Certification also helps in differentiating their offerings in a crowded market.

The Peace Finance Principles are integral to the Peace Finance Standard, serving as the foundational guidelines that shape and inform the entire framework. Here’s a brief overview of how these principles relate to the Standard:

Four Core Principles: The Peace Finance Principles consist of four key tenets:

  1. Commit to Peace Intentionality and Additionality: This principle emphasizes the importance of deliberate and additional efforts towards peace-building in finance.
  2. Execute Dual Materiality: It focuses on both risk to the investments and to those affected by the investments, considering both the financial materiality and the peace impact materiality of investments.
  3. Promote Inclusive Processes: This principle advocates for inclusivity and participation of diverse stakeholders in peace finance processes.
  4. Create Trust-Building Conditions: It underscores the need to establish conditions that foster trust among all parties involved.


Complementarity with other principles

These operating principles are designed to complement other internationally recognized risk and impact management principles, ensuring a holistic approach to peace finance.


Guidance for Stakeholders

The Peace Finance Principles provide explicit operating guidance for investors, issuers, verifiers, and other users. They are the guiding lights that ensure all activities under the Peace Finance Standard are aligned with the overarching goal of promoting peace.

Detailed Description in PFIF V2

For a more comprehensive understanding of these principles and how they are applied, you can refer to the document titled "PFIF V2". This document [link to download] offers an in-depth look at the operating model and helps investors align their strategies for maximum peace impact and additionality.

In summary, the Peace Finance Principles are the bedrock of the PFIF, offering both a vision and clear and actionable guidance for all stakeholders involved in peace finance. They ensure that every aspect of peace finance is conducted with intentionality, inclusivity, and a focus on building trust and achieving tangible peace outcomes.

The Peace Finance Principles are:

Principle 1. Commit to Peace Intentionality and Additionality

Principle 2. Execute Dual Materiality

Principle 3. Promote inclusive driven processes

Principle 4. Create Trust-building conditions

These operating Principles are complementary to other internationally used risk and impact management principles. In fact, the four Principles have been designed to serve as the foundation of the PFIF and provide explicit operating guidance for investors, issuers, verifiers and other users of the guide. The Peace Finance Principles are further described in the document titled: PFIF V2 [link to V2 download]; introducing an operating model to help investors align for peace impact and additionality.

Eligibility for Peace Bond or Peace Equity investments typically revolves around projects that directly contribute to peace-building and conflict-sensitivity. While the specific criteria can vary depending on the guidelines of the Peace Finance Standard, generally eligible projects supported by Peace Enhancing Mechanisms and conflict-sensitive approaches may include:

Economic Development: Investments in economic development that specifically aim to reduce poverty, create jobs, livelihood opportunities and food security and promote equitable economic opportunities in regions prone to conflict. Such investments should be supported by:

  • Initiatives aimed at providing education and training, especially in areas affected by conflict, which can include peace education, conflict resolution training, and programs that promote understanding and tolerance among diverse groups.
  • Projects that focus on empowering communities in conflict-affected or fragile regions, promoting social cohesion, and reducing inequalities.
  • Initiatives to improve equal healthcare access and services in conflict-affected areas, contributing to overall well-being and stability.
  • Programs that foster cultural understanding, social integration, and reconciliation among conflicting or unequal groups.
  • Use of technology to promote peace, such as platforms for dialogue, conflict monitoring, and promoting transparency and accountability as part of social and economic development projects.
  • Projects that support human rights, advocate for marginalized groups with the specific aim to work towards resolving systemic issues that lead to conflict.
  • Projects with a humanitarian focus, improving the resilience of people who have experienced natural or human-made disasters.


Infrastructure Development: Infrastructure projects that are crucial for peace-building, such as rebuilding in post-conflict areas, developing essential services (water, electricity, transportation) in a manner that promotes social equity and stability.

Environmental Sustainability: Projects that address environmental issues (through climate adaptation) which can be a source of conflict, such as water scarcity or land degradation, and promote sustainable use of natural resources and climate resilience.

It is important to note that these investments should not only aim to avoid harm but actively contribute to peace-building. They should be evaluated for their direct and indirect impacts on peace, ensuring alignment with the principles of conflict sensitivity and Do-No-Harm approaches. Additionally, they should meet the minimum social and environmental safeguards and comply with the exclusionary criteria as outlined in the Peace Finance Standard.

The Standard and Certification Scheme has been built on existing market practice like the ICMA Social Bond Principles and Sustainability Guidelines, the Climate Bonds Standard (CBI) and the OPIM Principles. These standards and principles served as a departing point for developing the two Peace Standards. However, the Peace Bond Standard and Peace Equity Standard include very specific elements and guidelines that address the barriers to peace-positive and conflict sensitive impact development and management.

The Peace Finance Standard includes a set of criteria and guidelines that issuers must follow to certify their investments as peace-positive. This involves a thorough evaluation of the investment's impact on peace, adherence to social and environmental safeguards, and ongoing monitoring and reporting.

The Peace Finance Standard is essential to ensure the credibility and effectiveness of investments in peace-positive projects. It provides a structured approach for bond and equity issuers to align their investments with peace-building objectives, ensuring transparency and accountability in the process.

© Finance for Peace 2023