Ulaanbaatar, December 20, 2023 /MONTSAME/.  The Office of the President of Mongolia, the Ministry of Environment and Tourism of Mongolia, and the Bank of Mongolia are organizing a series of meetings to create a financial system to combat climate change.

Earlier a discussion was organized on "Creating a climate finance system," and another discussion on "Practical implementation of policy measures taken against climate change" was held on December 19, 2023, at the Bank of Mongolia.

N. Batkhuu, Environmental and Green Development Policy Advisor to the President of Mongolia emphasized the necessity of creating a system for financing climate change mitigation and a mechanism to ensure its legal and cross-sectoral coordination. He stated that a draft law on combating climate change is being developed to create an integrated rational framework for climate change mitigation and adaptation to its consequences.

"State and private sectors should cooperate and contribute to mitigate climate change, combat environmental degradation, and create a climate finance system. Although it is not possible to fully resolve these issues, we are holding a series of meetings and discussions to ensure the involvement of many parties. It would help address political and legal issues as well," said N. Batkhuu.

According to research, the amount of green gases emitted by Mongolia has increased by 65 percent over the past 20 years. A sustainable financial mechanism must be created to reduce greenhouse gas emissions and mitigate climate change.

"Climate finance is being discussed to ensure the participation of the Ministries and stakeholders. Mongolia is to implement its commitments under the Paris Agreement on climate change and reduce its negative impacts. Climate finance is a subset of environmental, or green, finance," said Ts. Munkhbayar, Coordinator and Manager of the PFP project at the representative office of De Neche Conservancy in Mongolia.

Ts. Munkhbayar noted that climate finance refers to financing drawn from public, private, and alternative sources and the profits generated from nature exceed the money donated and invested into it. He specified that the Conservation Trust Fund (CTF) will be established in Mongolia to implement this goal.

The Conservation Trust Find is a sustainable financial mechanism. There are over 170 CTFs in the world. In Mongolia:

-Green lending standards

-Need for creating CTF

During the Meeting, the Executive Director of the OLOLT Climate Change, Carbon Market Development Center T. Anand presented the principle and mechanism of a single carbon credit for climate finance implemented at the international level. Carbon credits, also known as carbon offsets, are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases. T. Anand stressed that as Mongolia's greenhouse gas emissions have exceeded their absorption since 2011,  actions must be taken to close this gap.

At the Meeting, the participants discussed the challenges facing energy transition and renewable energy projects and the need for political support. In addition, scientists and industry experts exchanged views on the need to change the legal and incentive systems for the development of climate-resilient agriculture and livestock.