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The Humanitarian Finance Forum is a global network of professionals working in humanitarian finance. We provide a platform for collaboration, learning, and advocacy. Contact us today to learn more about our work and how you can get involved.

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Humanitarian Finance Forum Contact Us | Connect with Us to Learn More

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The London Summit brings together cross-sector experts to explore innovative disaster risk finance and insurance mechanisms to address the increasing humanitarian needs resulting from climate shocks, conflicts, pandemics/epidemics and crises challenges. 

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The London Summit

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Bringing together experts with AidEx participants to share public and private perspectives around the new and rapidly developing field of innovative finance, and to explore addressing funding needs for projects in LIC/FCSA settings.

AidEx 2023 - Innovative Finance Side Event

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At this virtual event hosted in partnership with the <a href="https://www.rodakorset.se/en/">Swedish Red Cross</a>, we sat down with J&ouml;rgen and Anna to discuss the transformative role Humanitarian Innovative Finance (HIF) can play in bridging the funding gap for humanitarian crises.
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Projects such as the <a href="https://www.icrc.org/en/document/humanitarian-impact-bond-brings-physical-rehabilitation-services">ICRC&rsquo;s Humanitarian Impact Bond</a> and the<a href="http://chrome-extension//efaidnbmnnnibpcajpcglclefindmkaj/https://www.rodekors.dk/sites/rodekors.dk/files/2023-01/HIFhub%20Volcanos%20Catbond%202-pager.pdf"> Danish Red Cross&rsquo;s Parametric Volcano Bond</a> are invaluable case studies where public-private partnerships have led to breakthroughs in funding models, transfer of technological solution​s, and investment strategies that support long-term resilience in vulnerable communities. We also have some key recommendations to leverage the potential benefits of HIF.&nbsp;

Spotlight: Discussion on the “Red Cross and Red Crescent Innovative Finance” Report




At this virtual event hosted in partnership with the Swedish Red Cross, we sat down with Jörgen and Anna to discuss the transformative role Humanitarian Innovative Finance (HIF) can play in bridging the funding gap for humanitarian crises.

Event Summary

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As we look back on 2023, we take this opportunity to celebrate the accomplishments of the past year and look forward to the continued collaboration and inspiration that will undoubtedly proper us into a future defined by innovation and sustainable impact.&nbsp; On this note, we would like to share with you our year-end newsletter highlighting our key moments.&nbsp;

As we reflect on 2023, the Forum takes great pride in revisiting some of the key events that have defined our pursuit of positive change. Throughout the year, we have had the privilege of hosting and attending transformative events that brought together dedicated individuals and organisations committed to advancing humanitarian finance.

2023: End of Year Newsletter

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This brief highlights the consistent, repeated, and extensive references in the White Paper to the need for additional financial resources for development purposes through Innovative Finance, as well as a deeper engagement with the private sector and civil society for this purpose. By bringing these citations together, the paper aims to fashion the aspects and topics of Innovative Finance raised by FCDO into a singular cohesive narrative and approach.&nbsp;
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This review and synthesis of FCDO's announced policies (including FCDO's Humanitarian Framework published on 10 November 2022 as remains active) on Innovative Finance is intended to support and inform the development of a strategic response by humanitarian sector and Civil Society actors, as well as informing their relationships with FCDO to ensure relevance.&nbsp;
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Read the FCDO White Paper <a href="https://www.gov.uk/government/publications/international-development-in-a-contested-world-ending-extreme-poverty-and-tackling-climate-change">here</a>.

In November, the UK government's 2023 International Development White Paper was released, stressing the need for additional financial resources for development purposes through Innovative Finance. In response to this, the Forum and the British Red Cross have strategically evaluated the relevance to CSOs, leveraging the synthesis of FCDO's Innovative Finance policies.

The Forum Response: UK FCDO White Paper

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Good nutrition has a hugely positive impact on health and other social goals, like educational attainment and work productivity &ndash; but the sector remains under-financed relative to its potential. How can we change this? While there is also scope for increasing investment via national budgets or official development assistance, it is essential to think creatively about how to expand the pool of financing available to support nutrition by attracting diverse funders via novel structures, as well as deploying traditional aid in new ways&mdash;i.e., innovative finance. &nbsp;

The Global Alliance for Improved Nutrition (GAIN) is a Swiss-based foundation launched at the UN in 2002 to tackle the human suffering caused by malnutrition. Working with governments, businesses, and civil society, GAIN  aims to transform food systems so that they deliver more nutritious food for all people, especially the most vulnerable. 

GAIN Innovative Finance for Nutrition

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Across the world, 90 million people have a physical disability and require a mobility device. However, <a href="https://www.who.int/publications/i/item/9789241564182">only 10% have access to adequate physical rehabilitation support</a>. Without these services, living with a physical disability can put someone at <a href="https://www.icrc.org/en/document/worlds-first-humanitarian-impact-bond-launched-transform-financing-aid-conflict-hit">greater risk of societal exclusion</a> and act as a barriers to accessing education or employment.
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Organisations such as the International Committee of the Red Cross (ICRC) support provision of such services, yet <a href="https://www.bond.org.uk/news/2018/02/how-the-first-humanitarian-impact-bond-will-transform-financing-of-aid/">funding challenges are significant</a> and operations are stretched across dozens of countries. This makes innovating and scaling new management approaches difficult.
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Using Humanitarian Impact Bond (HIB)
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The ICRC sought to expand and improve efficiency of physical rehabilitation services. With national government agencies and a major foundation from an international bank &ndash; <a href="https://fundacionlacaixa.org/es/">La Caixa Foundation </a>taking on the role of commissioners of support services they had a starting point.&nbsp;
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After two years of planning, the<a href="https://golab.bsg.ox.ac.uk/knowledge-bank/glossary/#humanitarian-impact-bond"> humanitarian impact bond (HIB)</a> launched in September 2017. This would become known as the Programme for Humanitarian Impact Investment (PHII) and it is based on the <a href="https://www.cgdev.org/topics/development-impact-bonds">development impact bond (DIB) model</a>. PHII secured 5 years of funding from private investors.&nbsp;
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Using an impact bond allows the International Committee of the Red Cross to innovate and improve efficient delivery of rehabilitation services, while still ensuring high quality and well-targeted services are provided.&nbsp;
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The Impact
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Over 3,000 persons with disability have benefited from physical rehabilitation services in the Democratic Republic of Congo (DRC), Mali and Nigeria. Despite COVID-19, military coups and peaks of violence making the implementation of the project complex, the rehabilitation centres are 9% more efficient than the benchmark centre in terms of time management, staff member skills, management of stock and resources.
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Read More Here: <a href="https://golab.bsg.ox.ac.uk/knowledge-bank/case-studies/humanitarian-impact-bond/">Government Outcome Labs, Blavatnik School of Government,Oxford University</a>

Across the world, 90 million people have a physical disability and require a mobility device. However, only 10% have access to adequate physical rehabilitation support.

ICRC Humanitarian Impact Bond for Physical Rehabilitation

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In light of the current highly challenging background of humanitarian intervention for the European Union and international humanitarian donors, the European Commission has adopted a Communication on the EU's humanitarian action: new challenges, same principles. It provides guidelines on how the EU may face this challenge in collaboration with Member States and donor partners. The Communication focuses on two main areas: (1) addressing needs, reducing the funding gap, and (2) supporting an enabling environment for humanitarian aid. Through an analysis of the Communication's seven objectives, the authors address key action and provide final recommendations. Furthermore, the authors evaluate which key actions are the most promising, critical or challenging, which have already been partially implemented and which should be prioritised. Implementation of the key actions is generally well-developed, albeit many are found to share certain critical issues. These refer specifically to the need for: increased transparency and accountability; enhancing EU coordination with donor partners; and significantly strengthening the EU's leadership role. Moreover, the implementation of key actions must take greater account of dialogue and coordination both in the decision-making phase as well as in the implementation of humanitarian aid on the ground.&nbsp;

In light of the current highly challenging background of humanitarian intervention for the European Union and international humanitarian donors, the European Commission has adopted a Communication on the EU's humanitarian action

The Future of Humanitarian Aid in a New Context

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Since the publication of the pilot study in 2010, ALNAP has provided regular assessments of the humanitarian system's performance using the DAC evaluation criteria. The full 2022 SOHF report describes in detail the conditions for delivering effective, efficient and principled humanitarian assistance grew considerably more difficult over 2018 - 2021.&nbsp;
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Performance largely stayed the same, and in some areas slightly improved, and can therefore be regarded as a positive accomplishment, but not a reason for complacency, especially in the face of new challenges in the Russia-Ukraine conflict, and its wider impact on other humanitarian crises.&nbsp;
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A clear message emerging from the review of the past four years is that the basic principles that underpin and enable humanitarian action are under stress with the continued erosion of international norms and threat to global solidarity in upholding people's fundamental rights. And while none of this is new, the evidence suggests it is worsening, with a quick reversal of recent trends unlikely.&nbsp;
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At the same time, global system risks are accelerating and hyperconnected systems mean that 'everyone is living downstream of something else'. Climate change is a clear driver of this systemic risk, creating cascading effects that cross geographic, political, and sectoral boundaries. The face of conflict is also changing, and the 'world is moving closer to the brink of instability, where the risk we face are no longer managed effectively through the systems we have'.&nbsp;
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Right-sizing the humanitarian system for the future will demand much more than an increase in resources and efficiency; it is likely also to demand a re-evaluation and a reassertion of its ambitions, its scope, and its role in relation to others.&nbsp;
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ALNAP is a global network of humanitarian organisations, including UN agencies, members of the Red Cross and Red Crescent Movement, NGOs, donors, academics, networks, and consultants dedicated to learning how to improve the response to humanitarian crises.&nbsp;

Since the publication of the pilot study in 2010, ALNAP has provided regular assessments of the humanitarian system's performance using the DAC evaluation criteria. 

2022 The State of the Humanitarian System (SOHS)

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Over 1 billion people live in slums and informal settlements across the Global South, without formal access to potable water, sewage or electricity, amongst other deficits. Despite the severe social and environmental effects of urban informality, it remains invisible to the impact community as an issue area.
 In this document, the Global Steering Group for Impact Investment (GSG) make the case for prioritising urban informality as a core area for impact and development, and emphasise the contribution this would make to achieving the UN SDGs. We are calling on all stakeholders to no longer view slums and their inhabitants as a problem only, by acknowledging the potential in transforming urban liabilities into assets.
 The GSG estimate that there is a total investment need of about $6 trillion for slum upgrading globally, which is a sizeable gap from the limited amount of capital that currently goes into related programmes. The report also explain why this is a particular area in which supply of capital does not guarantee its own demand. Finally, the report proposes a basic framework for the design of thematic investment vehicles that can help break the deadlock and reach scale.

The Global Steering Group for Impact Investment (GSG) make the case for prioritising urban informality as a core area for impact and development, and emphasise the contribution this would make to achieving the UN SDGs.

Informal Settlements: No Longer Invisible 

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Driven by <a href="https://www.nrc.no/norcap/">NORCAP (Norwegian Capacity)</a> interest in blended finance solutions in displacement settings, the <a href="https://www.humanitarianenergy.org/what-is-the-gpa/resources-and-tools/blended-finance-solutions-for-clean-energy-in-humanitarian-and-displacement-settings/">GPA Coordination</a> Unit has composed an initial overview of <a href="https://www.nrc.no/globalassets/pdf/reports/blended-finance-solutions-for-clean-energy/blended-finance-solutions-for-clean-energy-in-humanitarian-and-displacement-settings.pdf">Blended Finance Solutions for Clean Energy in Humanitarian and Displacement Settings. </a>This report, along with its associated <a href="https://www.nrc.no/globalassets/pdf/reports/blended-finance-solutions-for-clean-energy/blended-finance-toolkit.pdf">Blended Finance Toolkit for Clean Energy Solutions in Humanitarian and Displacement Settings</a> provides an overview of blended finance mechanisms and their role in delivering sustainable energy solutions as part of humanitarian response.
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The report highlights key lessons learned from using different blended finance mechanisms in displacement settings and makes recommendations for their continued

Driven by NORCAP (Norwegian Capacity) interest in blended finance solutions in displacement settings, the GPA Coordination Unit has composed an initial overview of Blended Finance Solutions for Clean Energy in Humanitarian and Displacement Settings.