Ulaanbaatar
Green Loan Program of the European Bank Starts in Mongolia
Economy
Ulaanbaatar, July 5, 2023 /MONTSAME/. The
European Bank for Reconstruction and Development (EBRD) has launched the Green Economy Financing Facility Program (GEFF) in Mongolia. The opening of the Program took place yesterday at the "Shangri-La" hotel.
At the opening, the General Manager of the Program Stanislav Dubko informed that within the bound of the GEFF Program the EBRD, the Government of Japan, and the Green Climate Fund are jointly starting to implement a project worth USD 137 million.
Green productions of Mongolian companies and enterprises, as well as households' green consumption, will be financially supported via KhanBank and XacBank. At least 20 percent saving in electricity and water consumption will be criteria for receiving the green loans, he noted.
In Mongolia, citizens and enterprises receive green loans with the financing of commercial banks and the Mongolian Sustainable Financing Union. When Stanislav Dubko, General Manager of the Program was asked if the amount and availability of green credit would be increased with the flow of funding through the GEFF Program, he answered:
"With the implementation of our program project, funding will grow in addition to the green loans, currently provided. In this way, for Mongolia, which has a high demand for green loans, although our assistance will not solve all problems at once, it will help the cooperation in transitioning from a brown economy to a green economy. One of the features of the program is to provide additional consulting services with technical assistance through commercial banks," replied Mr. Stanislav Dubko.
Mongolia
is the last Central Asian country to join the GEFF program, which supports
increasing access to energy-efficient and high-standard green technologies.
The
GEFF Program is based on the Mongolian Sustainable Energy Financing Facility
(MonSEFF), implemented in our country in 2014-2019. MonSEFF, with total funding of USD 25 million, supported Mongolia's
industries and entrepreneurs to reduce their energy consumption by investing in new
energy-saving equipment. As a result of the project, our country saved 255 thousand MWh of energy per year and reduced carbon emissions by 94 thousand tons.
