Key Takeaways
- Britain, Australia and Canada have created a joint £3 million (≈ $4 million) peace fund to advance a two‑state solution for Israelis and Palestinians.
- Each country contributes £1 million; the fund will initially support grassroots projects that involve youth groups, civil‑society organisations and women.
- The initiative follows coordinated sanctions by the same countries (plus France, New Zealand and Norway) targeting networks that finance and carry out settler violence in the occupied West Bank.
- Besides humanitarian aid for Palestinians, the fund aims to curb “violent” Israeli settlers and to back U.S. President Donald Trump’s 20‑point Gaza peace plan.
- British Foreign Secretary Yvette Cooper stresses that a negotiated two‑state settlement is the only viable path to lasting peace, security and dignity for both peoples.
- The fund seeks to scale up and attract additional donors once operational, and was announced ahead of a trilateral meeting in the UK.
- UN investigations have found Israeli authorities directly involved in settler attacks that have killed, injured and displaced Palestinians, while Israeli forces often provided protection to the settlers.
- Since the onset of Israel’s Gaza war on 7 October 2023, the West Bank has experienced near‑daily violence, with over 1,000 Palestinians killed according to UN figures.
Announcement of the Joint Peace Fund
On 11 June 2026, the foreign ministries of Britain, Australia and Canada unveiled a new peace initiative aimed at fostering a two‑state solution to the Israeli‑Palestinian conflict. Each government pledged £1 million (about $1.34 million), creating a pooled fund of £3 million (approximately $4.02 million). The announcement was made in a press release from the United Kingdom’s foreign office, highlighting the fund’s focus on supporting grassroots efforts that promote dialogue, trust and reconciliation between the two communities.
Target Audience and Grassroots Focus
The fund is designed to channel resources into new and existing projects that engage youth groups, civil‑society organisations and women’s associations. By prioritising these sectors, the donors hope to empower those most affected by the conflict and to nurture a generation committed to peaceful coexistence. The initiative stresses that lasting peace cannot be achieved solely through high‑level diplomacy; it must also be built from the ground up, where everyday interactions can break down cycles of hostility.
Connection to Recent Sanctions on Settler Violence
The launch of the peace fund follows a coordinated sanctions regime announced earlier in the week by the same three countries, together with France, New Zealand and Norway. Those sanctions target networks that finance and execute Israeli settler violence against Palestinians in the illegally occupied West Bank. By coupling financial penalties with positive investment in peacebuilding, the Western nations aim to both deter harmful activities and incentivise constructive alternatives.
Humanitarian Aid and Settler Accountability
Beyond promoting dialogue, the fund explicitly intends to provide humanitarian assistance to Palestinians suffering from the ongoing crisis. At the same time, it seeks to “crack down on ‘violent’ Israeli settlers,” signalling a commitment to hold perpetrators of attacks accountable. This dual approach reflects the donors’ belief that addressing immediate suffering and deterring future violence are complementary steps toward a sustainable peace.
Support for the Trump Gaza Peace Plan
An additional dimension of the initiative is its endorsement of United States President Donald Trump’s 20‑point Gaza peace plan. While the plan has been controversial, the three governments view it as a framework that can complement their own efforts, particularly in addressing the humanitarian and reconstruction needs of Gaza. By aligning with this proposal, the fund hopes to leverage existing international discourse and attract broader support for a comprehensive settlement.
Long‑Term Peacebuilding Vision
The UK foreign ministry described the fund’s overarching goal as fostering “long‑term peacebuilding between Israelis and Palestinians to address root causes of conflict.” Rather than offering short‑term relief alone, the initiative aims to tackle underlying grievances—such as land disputes, movement restrictions and economic disparities—that fuel recurrent violence. By investing in community‑led projects, the donors aspire to create resilient local capacities for conflict resolution that can endure beyond any single diplomatic push.
Leadership Statements and the Two‑State Imperative
British Foreign Secretary Yvette Cooper underscored that a negotiated two‑state solution remains the only viable route to a just and lasting peace, guaranteeing security and dignity for both Israelis and Palestinians. She emphasised that the fund will help advance this goal from within the communities themselves, allowing locals to shape the peace process rather than having it imposed externally. Her Australian and Canadian counterparts echoed this sentiment, reinforcing the trilateral commitment to the two‑state paradigm.
Funding Mechanism and Future Expansion
Although the initial capital stands at £3 million, the fund is designed to be scalable. The organizers intend to use the seed money to demonstrate impact, thereby attracting additional contributions from other governments, philanthropic foundations and private donors. This match‑funding strategy aims to multiply the resources available for peacebuilding over time, creating a self‑reinforcing cycle of investment and outcomes.
Timing and Diplomatic Context
The announcement was made ahead of a meeting in Britain between Foreign Secretary Cooper and her Australian and Canadian counterparts, Penny Wong and Anita Anand. The gathering provided an opportunity to align strategies, discuss coordination mechanisms and reaffirm the shared commitment to a two‑state solution amid rising tensions. The timing underscores the urgency felt by the three nations to act before the situation deteriorates further.
UN Findings on Settler Violence
A United Nations inquiry has concluded that Israeli authorities were directly involved in settler attacks that have killed, injured and displaced Palestinians in the West Bank, while Israeli forces frequently provided protection to the settlers. These findings lend weight to the sanctions and the fund’s emphasis on curbing settler violence, highlighting the need for accountability and for measures that deter state‑backed or tolerated aggression.
West Bank Violence Since the Gaza War
Since the onset of Israel’s Gaza war on 7 October 2023, the West Bank has experienced almost daily confrontations involving Israeli troops and settlers. According to UN data, more than 1,000 Palestinians have been killed in the territory during this period. The pervasive atmosphere of fear and retaliation has exacerbated humanitarian needs and deepened mistrust, making the peace fund’s grassroots focus both timely and essential.
In summary, the new Britain‑Australia‑Canada peace fund represents a multifaceted response to the Israeli‑Palestinian conflict: it combines financial sanctions against settler violence, humanitarian aid, support for a U.S.-backed Gaza plan, and sustained investment in community‑level peacebuilding—all aimed at revitalising the pursuit of a viable two‑state solution.