A. About Finance for Peace
Finance for Peace works with partners to catalyse a market for peace-positive investment. We work collectively to create standards, market intelligence and partnerships across sectors to build trust, share knowledge and establish networks.
Through leveraging and creating new partnerships of on the ground community engagement and political support, Finance for Peace aims to scale what we call “Peace Finance” – investment that has an intentional and positive impact on peace while promoting economic development, job creation and better livelihoods. Peace-positive investment generates mutual benefits of reduced risks for investors and communities and can achieve both bankable and peaceful outcomes.
Peace-positive investment encompasses different asset classes such as Peace Bonds or Peace Equity or similar structures, across a range of sectors. In order for Peace Bonds and Peace-Equity like structures to take flight, we need commonly agreed standards and guidance that the market can trust and use, as well as new partnerships and knowledge.
Finance for Peace brings together investors, private sector actors, development finance institutions and other development actors, governments, peacebuilders, civil society and communities, to identify innovative solutions that can bring true additionality to investors, as well as more inclusive development.
Finance for Peace is supported by the German Federal Foreign Office (GFFO) and builds on feasibility research supported by the UK Foreign and Commonwealth Development Office (FCDO) on a new sustainable investment category called Peace Bonds. Finance for Peace has been incubated by Interpeace, an international peacebuilding organisation that has worked on conflict resolution and peacebuilding throughout Africa, the Middle East, Asia, Europe and Latin America for 30 years.
For more information on Interpeace or the Finance for Peace initiative, please see: https://www.interpeace.org/ and https://financeforpeace.org/.
B. About the partner: Investing and Partnering with Youth for Peace (IPYP)
Despite increasing recognition of the important roles young people play in peacebuilding, youth-led organisations face limited, inaccessible, unpredictable and inflexible funding. For example, it is estimated that 49% of youth-led organisations operate on less than USD 5,000 annually. Moreover, while data is limited, funder dialogues indicate that the demand and need for investments in young people’s role in peacebuilding is far beyond existing resources. Young people are rarely meaningfully involved in investment decisions and there is limited or no investor guidance for engaging with young people in a peacebuilding context.
Within this context, the Global Coalition for Youth Peace, and Security Financing Taskforce launched a working group to explore the role of the private sector in supporting the YPS agenda. The ‘Investing and Partnering with Youth for Peace’ (IPYP) purpose is twofold: (1) to identify, research and recommend potential options for additional resource mobilisation and partnerships with the private sector to advance the role of young people in peacebuilding; and (2) to mobilise resources and partnerships and help strengthen knowledge management and advocacy through coordination. IPYP is currently developing an innovation portfolio, with a pipeline of different private-sector partnerships and financing opportunities to advance the role of young people in peacebuilding.
For more information on IPYP see: https://cnxus.org/investing-partnering-youth-peace-ipyp/.
C. Project overview
The joint Finance for Peace – IPYP project will develop a normative understanding of Youth Peace Finance (YPF) (“the principles and taxonomy”) [Phase 1A] and how investors can meaningfully engage with young people (the “guidance”) [Phase 1B].
NOTE: These particular Terms of Reference relate to Phase 1A of the project only. For more information on Phase 1B, led by IPYP and generously supported by Robert Bosch Stiftung, see: https://www.daghammarskjold.se/wp-content/uploads/2024/05/ipyp-developing-investor-guidance-2024.pdf.
The objectives of the Phase 1 research are to:
All above deliverables are due by October 2024.
In the second phase, the principles, taxonomy and guidance will be tested in a new YPF transaction. The intended outcome of Phase 2 is to increase the volume of investments that meaningfully include young people in the origination, design and structuring of new investments and to increase the volume of investments that target youth and peace impacts.
Finance for Peace, the IPYP Project Team and IPYP Youth Coordinators along with two consultants will undertake Phase 1. Throughout the study, opportunities will be sought to align with Interpeace’s Peace Finance Impact Framework (PFIF) and other relevant initiatives.
D. Background and description of the assignment
The work will seek to develop Youth Peace Finance Principles and Taxonomy for investors seeking to align their portfolio and undertake new Youth Peace Finance investments. There are nine steps in this process, and a consultant is sought to complete steps 3-9.
Step | Overview: Phase 1A | Status |
1 | Draft initial framing of principles and taxonomy (annex 1) | Complete |
2 | Feedback on the draft from IPYP coordinators | Complete |
3 | Conduct joint planning for work area A and B with key members of the Steering Committee (formed by Finance for Peace, IPYP project team and IPYP youth coordinators) | Co-led by consultants for work area A & B |
4 | Identify and select case studies that demonstrate YPF in practice | Led by consultant for work area A |
5 | Apply the principles and taxonomy to the case studies and collect key insights | |
6 | Identify cases that demonstrate meaningful engagement between investors, young people and youth networks | |
7 | Review findings, redraft the principles and taxonomy and consolidate results | |
8 | Share the re-drafted principles and taxonomy with youth coordinators and other key actors | |
9 | Working closely with Finance for Peace colleagues, develop a module for YPF principles and taxonomy and investor guidance on Finance for Peace’s e-learning platform |
Phase 1B will run in parallel and be led by a youth peace researcher to develop investor guidance (“guidance”) on how investors can meaningfully engage with young people in pipeline generation[1]. The consultants leading work area A and B are expected to work together to produce one final product that incorporates the principles and taxonomy, investor guidance and case studies that exemplify YPF in practice, as well as the e-learning module.
Step | Overview: Phase 1B | Status |
1 | Conduct joint planning for work area A and B with key members of the Steering Committee | Co-led by consultants for work area A & B |
2 | Literature review of meaningful youth engagement and partnerships within the youth development and peacebuilding community | Led by consultant for work area B |
3 | Test draft guidance with youth leaders, founders of youth-led peacebuilding organisations or coalitions, networks and other key actors | |
4 | Produce investor guidance to be incorporated into the final product with the consultant on work area A | |
5 | With Finance for Peace, develop a module for YPF Principles and Taxonomy and investor guidance for the e-learning platform |
The study builds on an initial framing of a YPF definition, principles and taxonomy outlined in Annex 1 and the work of Finance for Peace under the Peace Finance Investment Framework (PFIF). The consultant will work alongside and in coordination with a youth peace researcher under work area B, who will lead the development of guidance on meaningful youth engagement. This work has been catalysed by Finance for Peace and the IPYP project team in response to growing needs from investors and young people in the development of Peace Finance.
To date, the draft principles and taxonomy (annex 1) have been developed by Finance for Peace and the IPYP project team, with initial feedback from IPYP coordinators. This work highlights the need to establish a normative understanding of Youth Peace Finance and investor guidance and promote meaningful youth engagement all along the investment process. Research by the IPYP coalition in 2023[2] reviewed existing peace impact frameworks and found limited evidence of what a ‘youth lens’ in peace investing would entail. Detailed guidance on how investors can engage young peacebuilders in the development and implementation of such criteria[3] was also missing. Furthermore, as the PFIF feasibility study outlined, where engagement has been conducted, it is often with a superficial focus on local needs or inclusion of beneficiary voices. Engagement happens after investment decisions have been made. Yet, young people can provide additionality to the investment process with their contextual understanding and as positive agents of change.
Detailed guidance for how investors can meaningfully engage in a participatory process with young peacebuilders is absent. Local actors are often marginalised, which limits connection with investors, and with limited formal processes, any grievances are hard to capture. A lack of engagement with community actors, including young people, can result in project failure and despite increasing calls for participatory processes, no investor guidelines have been implemented.[4]
In working in partnership with the youth peace researcher under Phase 1B, the study should incorporate guidelines for investors for meaningful youth engagement. It is crucial that these work packages are mutually reinforcing each other, creating a cohesive guidance product aimed primarily at investors.
The study should be based on interviews with key stakeholders, participatory approaches with young peacebuilders, desktop research and validation with key actors.
E. Tasks [Phase 1A]
To complete the study, the consultant is expected to undertake the below tasks. In responding to this proposal, the consultant should include a proposal of how they would carry out the study, including ideas for proposed tasks to achieve the outcomes.
Step 3: Conduct joint planning for Phase 1A and 1B with the steering committee (2-3 days)
Step 4: Identify and select case studies that demonstrate YPF in practice (5-7 days)
Step 5: Apply the principles and taxonomy to the case studies and collect key insights (10-12 days)
Step 6: Identify cases that demonstrate meaningful engagement between investors and young people and youth networks (3-5 days)
Step 7: Review findings, redraft principles and taxonomy, and consolidate results (5-7 days)
Step 8: Share the re-drafted principles and taxonomy with youth coordinators and other key actors (5-7 days)
Step 9: With Finance for Peace, develop a module for YPF Principles and Taxonomy and investor guidance for the e-learning platform (5 days)
F. Experience
The ideal candidate will have:
Candidates will be screened on the basis of the above criteria and shortlisted candidates will be invited for an interview.
G. Timeframe and deliverables
The deliverables are expected to be completed by October 2024 with mid-term deliverables due in August 2024, in advance of the UN Summit of the Future where initial findings can be circulated for dissemination and discussion.
It is expected for the consultant to take between 35-46 days to complete this work.
The final deliverable is expected to include i) principles and taxonomy ii) investor guidance on how to meaningfully engage with young people in pipeline development, iii) case studies that exemplify YPF in practice iv) e-learning module on the principles and taxonomy, guidance and cases.
A communications team will support the editing and production of a final publication.
H. Reporting and feedback
This tender process is used to identify a technical finance consultant for phase 1A. A separate tender has been published to identify a youth and peace researcher for phase 1B. Both research teams are expected to collaborate and align closely together.
The tasks listed above are to be performed in an interactive and iterative process in collaboration and with support from the Finance for Peace, IPYP project team and IPYP youth coordinators, who will form the Steering Committee.
The consultant(s) will report to the Head of Standards of the Finance for Peace initiative.
I. Budget
In responding to this tender, candidate(s) should include the projected budget for the work.
J. How to apply
We welcome qualified consultants of diverse origins and backgrounds to submit their application via info@financeforpeace.org no later than end of day 19 June 2024, consisting of the following:
The below annex provides background information on the draft principles and taxonomy and scope of work for phase 1A
The draft guidance below has been developed by F4P, the IPYP project team and is undergoing consultation with IPYP youth coordinators. The guidance is expected to emerge from the study and from youth leadership and is therefore set up here to provide direction, but should be adapted as findings from the study emerge.
YPF definition: Finance that positively impacts young people and peace outcomes through principles of meaningful youth engagement and empowerment.
Draft YPF Principles: Principles provide a guide for investors to underpin the ethos of youth peace impact investing.
Draft YPF taxonomy: Peace taxonomy serves as guidance for investors to be specific about the types of changes they seek to make and provide further clarity as to what kind of peace additionality is aimed for.
Safety and Security
Social Peace
Political Peace
The consultant should identify case studies with youth leadership. Examples of such case studies may include:
Youth-led social enterprises: Look for social enterprises or businesses founded and operated by young entrepreneurs that have a clear peacebuilding or conflict-resolution component. These entities should demonstrate how economic activities can contribute to peace and how young people lead such initiatives.
Youth-inclusive financial mechanisms: Identify programs or projects where financial mechanisms (like microfinance, impact investing, or social bonds) have been specifically tailored to include and benefit young people in conflict-affected regions, demonstrating the principles of inclusivity and sustainability.
Innovative funding models for peace: Explore case studies where innovative funding models have been used to support peace initiatives involving youth. This could include crowdfunding, diaspora funding, or blended finance models that combine different types of capital.
Youth in development and post conflict reconstruction: Look at examples where young people have played a significant role in economic recovery and peacebuilding in post-conflict settings, highlighting how their economic engagement has contributed to broader peace efforts. For example, in essential services e.g. water, sanitation, health or energy projects.
Cross-sector partnerships for youth and peace: Identify partnerships between the financial sector, NGOs, government agencies, and youth organisations that have successfully implemented programs or projects at the intersection of finance and peace, showcasing collaboration and partnership.
[1] Guidance should build on best practice e.g. Checklist for Meaningful Youth Engagement – UNOY
[2] See the IPYP inception report: https://cnxus.org/resource/investing-and-partnering-with-youth-for-peace-inception-report-2023/?swcfpc=1
[3] The only known guidance being developed is by UNICEF who are developing a “child lens” for investors.
[4] See examples cited in: International Alert, ’Towards peace-positive investment Bringing investors and fragile and conflict-affected states together, sustainably’, (Geneva: International Alert, 2022), https://www.international-alert.org/wp-content/ uploads/2022/05/Peace-Positive-Investment-EN-2022.pdf.
[5] Case studies may not yet be documented and the consultant may be required to document cases from interviews