Australia, UK and Canada set up Israel-Palestine peace fund

Australia has joined the United Kingdom and Canada in establishing an International Peace Fund for Israelis and Palestinians, a multi-donor initiative the three governments say is aimed at building the conditions for lasting peace.

In a joint announcement on 11 June, Foreign Minister Penny Wong, UK Foreign Secretary Yvette Cooper and Canadian Foreign Minister Anita Anand said each nation would contribute initial seed funding equivalent to £1 million (about $2 million) over three years. Once established, the fund will be open to contributions from other international partners.

“The fund will help strengthen the voices of moderates and marginalise the extremists, including Hamas,” the ministers said.

The announcement was made as Cooper hosted Wong and Anand in the UK for talks on the Middle East, at what the ministers described as “a moment of acute crisis in Israel and Palestine”.

“The last three years have exacted a devastating and dehumanising toll on civilians and deepened mistrust and division between communities,” they said, adding that civil society in the region had faced “increasing restrictions and unprecedented pressure”.

The Israeli government opposes the establishment of a Palestinian state at present, and public support for a two-state solution among Israelis has fallen sharply since the Hamas atrocities of 7 October 2023.

With prospects for a two-state solution remaining challenging in the short term, the ministers said there was an urgent need to invest in conditions that could make future peace possible through sustained dialogue and grassroots engagement.

Funding will be directed to what the ministers called “trusted civil society organisations” in both Israel and Palestine with demonstrated expertise in peacebuilding and dialogue.

The fund will invest in programs that advance a two-state solution, reduce division, strengthen civil society and support cooperation within and between Israeli and Palestinian communities.

The three governments reaffirmed their commitment to “a negotiated two-state solution in which Israeli and Palestinian people can live in peace, security and dignity”, which they described as “the only viable option” for both peoples.

The Australia/Israel & Jewish Affairs Council (AIJAC) has cautiously welcomed the announcement .

AIJAC Executive Director Dr. Colin Rubenstein said, “While efforts to foster Israeli-Palestinian dialogue, coexistence and mutual understanding are critical, and we are always glad to see Australia seeking ways it can support progress toward a genuine, negotiated two-state resolution, we will be seeking  greater detail regarding this new Fund’s governance, oversight and funding criteria.”

He said it is imperative that any recipient organisations have a demonstrated commitment to peace and coexistence and no funds are given to the many NGOs which routinely undermine Israel’s security, promote delegitimisation, and/or have extremist or terrorist links.

Dr Rubenstein said, “If administered properly, we believe this initiative could stand in stark contrast to Australia’s premature recognition of a Palestinian state last year, which not only risked rewarding rejectionism but actually undermined the prospects for direct negotiations on a two-state peace, which Australia rightly supports.

Robert Gregory, president of the right-leaning Australian Jewish Association, questioned the spending and its safeguards.

“At a time when Australians are struggling with a cost-of-living crisis, it is fair to ask why the Albanese Government keeps finding more taxpayer money to send to the Middle East. Since the October 7 attacks, Labor has committed well over $200 million to causes connected to Gaza and the wider region,” he said.

“The Government has provided no detail about what safeguards will be in place to ensure this latest funding does not benefit extremist groups or organisations that promote hatred and division.”

Gregory said the government had “already done significant damage to the prospects for peace by recognising a non-existent State of Palestine” and accused Labor of “sanctioning Israeli organisations, activists and elected ministers while simultaneously funding initiatives designed to shape Israeli civil society and influence Israeli domestic politics”.

“Peace will not come because Australia spends another few million dollars. Peace will come when Palestinian Arab leaders and their supporters finally abandon the fantasy of destroying the world’s only Jewish state and accept that Israel is here to stay,” he said.

The left-leaning New Israel Fund Australia, responding jointly with NIF Canada and NIF UK, welcomed the move, describing the governments’ decision to create the fund as “both brave and welcome”.

“It recognises a simple truth: peace is good for Jews and Muslims, for Israelis and Palestinians, and for the diverse societies we share in Australia, Canada and the United Kingdom,” the organisation said.

NIF Australia said it had advocated for more than a decade for the Australian government to invest meaningfully in Israeli and Palestinian civil society organisations, and credited partners including the Alliance for Middle East Peace, Principles for Peace and Women Wage Peace for their advocacy.

“As the Netanyahu government continues to push for legislation designed to weaken pro-democracy and civil rights organisations inside Israel, this announcement provides both practical and symbolic weight,” it said.

The ministers urged all parties to the conflict to take steps to reduce tensions, protect civilians, including humanitarian workers, and uphold international law.