The consequences of any violent conflict often manifest themselves on a local scale, which is why a local level approach is vital for dealing with these consequences. Local governments have an important role to play in situations of conflict as promoters and facilitators of peace, freedom, democracy and prosperity and by doing so they contribute to the international development and peace-building agenda. Therefore, local governments are instrumental in preventing conflicts, building bridges and dialogue after conflict and promoting a peaceful environment.

At the First World Conference on City Diplomacy, organized by United Cities and Local Governments (UCLG) and the Association of Netherlands Municipalities (VNG), the Hague Agenda on City Diplomacy was adopted, which aims to highlight the role of local governments in promoting peace, dialogue and reconstruction throughout the world. The Hague Agenda on City Diplomacy proposed to launch a peace prize for local governments, to be awarded to local governments who either work to prevent or overcome conflicts in their own community, or who have helped other local governments in conflict areas in their striving for peace or justice. This has taken shape in the UCLG City of Bogotá Peace Prize, now called the UCLG Peace Prize. This Prize celebrates successful initiatives for conflict prevention, peace-building and post-conflict reconstruction undertaken by local governments and stimulates others to follow suit. It is supported by the Provincial Council of Barcelona, the City of Tromsø, the Province of Gipuzkoa, VFonds and developed with expertise of PAX and VNG International, within the framework of the UCLG Committee on Development Cooperation and City Diplomacy.

The UCLG Peace Prize generates international public attention for the role local governments play in ensuring sustainable and peaceful development. Local governments that have implemented an innovative and high impact approach towards peace-building and the creation of dialogue are eligible for nomination. In addition to worldwide exposure and recognition, the winning local government receives a financial award to strengthen its peace projects and to facilitate learning exchanges with other local governments facing similar challenges.

The first edition of the Peace Prize (2016) saw the nomination of the city of Kauswagan (Philippines) as the most innovative and effective initiative in the process of peace-building for moving beyond addressing symptoms of armed conflict towards a socio-economic approach that bridges peace and development efforts.

The 2019 edition of the UCLG Peace Prize will be awarded during the UCLG World Congress in eThekwini (Durban), South Africa.