Mongolia’s Stance and Progress on Green Finance Presented

2023-06-15 11:54:03

Ulaanbaatar, June 15, 2023 /MONTSAME/. The “Green Finance-International Forum,” which is being co-organized by the Office of the President of Mongolia, the Mongolian Sustainable Finance Association, the Institute of Finance and Sustainability of China, International Finance Cooperation, Sustainable Banking, and Finance Network, and the Trade and Development Bank of Mongolia, is continuing on the second day in Ulaanbaatar. 


In his opening remarks at the Forum, President of Mongolia Khurelsukh Ukhnaa highlighted, “In the future, it is essential for Mongolia to fully define comprehensive green development policy, improve the legal environment, ensure coordination and cooperation of stakeholders, and create a green business environment. It is pre-estimated that $11.5 billion is needed for Mongolia to reach targets in its Nationally determined contribution. In terms of our efforts for mobilizing this funding, Mongolia has decided to annually spend up to 1 percent of our GDP to combat climate change and desertification.”


B. Davaadalai, Economic Policy Adviser to the President of Mongolia said, “During last year's "Green Finance - Regional Forum", Mongolia adopted its sustainable finance roadmap, and the financial sector committed to rapidly increase its green loans by 2030. In other words, the finance sector pledged to increase the sector’s green loan to 10 percent of the total loan portfolio. One of the realizations of their commitment is funding for the “One Billion Trees” national campaign. Annually, a substantial amount of funds, ranging from MNT 2 to 3 billion, is mobilized from various banks and channeled into the fund.” 


O. Orkhon, the Executive Director of TDB, one of the co-organizers of the Forum, said, “Our bank introduced the concept of sustainable financing to its operation a decade ago, and currently, 1.6 percent of our total loans have been dedicated to green loans. Furthermore, we are working toward our commitment to achieving the target of allocating 10 percent of the total loans as green loans by 2030."

Deputy Minister of Economy and Development G. Tuvdendorj highlighted the importance of keeping up with the global transition from the traditional economy to the green economy. “Even though today we are talking about the digital economy, in the end, we will come to realize that actually all types of economic growths are rooted in the green economy,” he continued. He is currently leading the Working Group to establish the Mongolia Environmental Trust fund. If the fund can be established according to international standards, it will be possible to raise about 700 million USD in the near future.


China’s green finance market is well poised for rapid growth – supported by the steady development of its green finance system, government policies, and other initiatives. According to President of the Institute of Finance and Sustainability and Chairman of the Green Finance Committee of China Ma Jun, RMB 25 trillion of green loans are issued annually in China. “We believe that there are opportunities to cooperate with Mongolia in the field of green financing and renewable energy in the framework of mutually beneficial projects and programs,” he proposed.  


Today (June 15), the Forum will continue with three more sessions with focuses on measuring and disclosing climate-related risks and impacts, enhancing interoperability of green and sustainable finance taxonomies, and financing sustainability with technology and innovation.


Related news