Ulaanbaatar, June 14, 2023 /MONTSAME/. Under the auspices of the President of Mongolia, the "Green Finance - International Forum" is taking place for the second time in Ulaanbaatar on June 13-16.

B. Davaadalai, Economic Policy Adviser to the President of Mongolia has been interviewed on the current situation of green financing, the proposed goals, and the expected results of the Forum. Here we present highlights of the interview.

“Green development has become a major global goal. In recent years, every country is paying a lot of attention to it, but due to the pandemic, geopolitical situation, and the increase in inflation, the government of most countries does not always have the opportunity to raise funds from their budgets. Therefore, in this critical time, the need for green finance to ensure green development is increasing. For example, last year, USD 650 billion was allocated for the climate change reduction goal globally.

This amount is estimated to reach USD 2.4 trillion by 2030. For Mongolia, the amount of greenhouse gas emission is relatively low, but our country is among the countries most vulnerable to climate change. That is why successive governments have focused attention on this issue. Since taking office President of Mongolia Khurelsukh Ukhnaa has been paying great attention to this issue and has shown leadership. By his initiation, national-level programs have been announced and are being implemented. The "One Billion Trees" national program is one of them.

At the same time, Mongolia has obligations and commitments to the international community. For Mongolia, according to preliminary estimation, USD11.5 billion will be required to implement nationally determined contributions, including reducing greenhouse gas emissions. At present, less than 10 percent of this required funding appears to be viable. We are facing a big challenge of how to form the remaining 90 percent. Therefore, attracting funds from foreign markets is urgent in terms of time. Currently, less than 1 percent of the loans provided by the banking sector, or MNT 300-400 billion, are green loans. This indicates we do not have enough funding to meet the goals.

To give just one example, before the start of the "One Billion Trees" national movement, MNT 2 billion used to be allocated from the state budget for afforestation. With the launching of this movement, the amount has increased to MNT 12 billion since last year. Effective actions like this are continuing, but it is obvious that the most important issue in the future is how to raise funds. The financial sector has committed within its framework. Continued attention is given to how this issue can be regulated in the state budget. In addition, the issue of how to coordinate green financing with the government's policy is under discussion. For instance, it will be the right policy if people have to plant trees to get social welfare allowances. Today, the business environment is lacking for the citizens and the private sector to start a green business. Therefore, the government should be proactive in creating a business environment.

Another important aspect to consider is whether there is agreement at the public-private sector level. Today, 70-80 percent of greenhouse gas emissions in our country are related to agriculture and energy sectors. Therefore, it is important to bring these issues to the attention of both the government and the private sector and make decisions.

At the same time, to solve all these problems, attention should be directed to manpower, knowledge, and system. Time will not wait for us if we do not take action in a race against time. As of today, the closest country, whose experience can be shared is China, which has successfully implemented the "Green Wall" project. We can achieve results by actively cooperating with the country in this regard. During his state visit to China, the President of Mongolia reached an agreement to establish a joint research center while working together within the framework of the "One Billion Trees" national movement. Currently, our scientists and scholars have visited China and Chinese scientists will come to Mongolia this month."