GGGI: Mongolia Seeks to Strengthen Partnerships to Scale up Sustainable Finance
2017-09-22 PM 5:37:55
ULAANBAATAR – September 14, 2017 – The Mongolian Sustainable Finance Forum 2017 was held on September 14 at Shangri-La Hotel in Ulaanbaatar, Mongolia, hosted by the Mongolian Bankers Association (MBA), in collaboration with MET, the Global Green Growth Institute (GGGI), the Arig bank, the International Finance Corporation (IFC), the Federal Ministry for Economic Cooperation and Development (BMZ), the NDC Partnership, UN Environment, the Partnership for Action on Green Economy (PAGE), UNDP-Biofin, the Ministry of Finance, the Bank of Mongolia, the Financial Regulatory Commission, Ulaanbaatar City Mayor’s Office, and the Mongolian National Chamber of Commerce and Industry (MNCCI).
The Mongolian Sustainable Finance Forum, now in its 5th year, is the largest gathering of national policy makers, business leaders, private sector investors, bankers, government officials, representatives of civic groups and international organizations. Under the theme of “Fostering Partnerships to Scale Up Sustainable Finance,” the one-day event brought together leading experts from a wide array of fields, including green development, sustainable finance, and innovative technologies.
Following successful editions of the Mongolian Sustainable Finance Forum 2013, 2014, 2015 and 2016, this year’s event attracted more than 350 participants, including key speakers, panelists and guests from around the world. Among the discussion topics were coming up with a roadmap and taking a collaborative approach to highlight sustainable finance in policies, regulations and non-banking operations, introducing and scaling up a pipeline of projects for the Mongolia Green Credit Fund (MGCF) to potential investors and reaffirming key partners’ commitment going forward, and highlighting the participation of the private sector in preparation for developing green projects.
The Government of Mongolia has expressed commitment to achieve the 2030 Sustainable Development Agenda and the Paris Agreement and the banking sector unanimously agreed to accelerate sustainable finance initiative and green economy transition. There is an eminent need to build a partnership platform to discuss, review and innovate policies, actions and initiatives and identify possible areas for collaborative efforts. This year’s event featured a visual exhibition where private sector organizations could display their sustainable and green projects and activities to explore potential partnership opportunities.
“In Mongolia, investment required to finance the Nationally Determined Contributions (NDCs) focusing on energy efficiency, renewable energy, buildings, waste and transportation amount to USD 7 billion. Apart from that, businesses and small and medium-sized enterprises (SMEs) need an additional investment of USD 1.5 trillion in the coming five years mostly for construction and manufacturing sector projects. Additionally, tackling critical sustainability issues such as air and soil pollution requires financing equal to USD 4.3 billion. To fill in this investment gap, all partners – public, private and international organizations – need to act together,” said Mr. Orkhon. O, President of the Mongolian Bankers Association.
“GGGI will continue to provide tailor-made and result-oriented support for Mongolia, specifically in relation to the development of bankable projects and the operation of the Mongolia Green Credit Fund (MGCF), the first and the only dedicated financial vehicle for climate finance in the country. In addition, GGGI’s Mongolia team has been working closely with city and national government partners to improve the regulatory and institutional frameworks needed to launch a green, inclusive Public-Private-Partnership investment program. Once launched later this year, the program is expected to mobilize between USD 8-10 million to finance energy efficiency retrofit projects in Ulaanbaatar’s public buildings,” said Dr. Frank Rijsberman, Director-General of GGGI.
“Public and private partnerships play important roles in the development of green finance. Policy makers and financial regulators need to understand the needs of private investors just as much as private investors need to get familiar with Government systems and articulate their needs better. The two must come together,” said Ms. Mahua Acharya, Assistant Director-General and Head of the Investment and Policy Solutions Division.
With the support of GGGI and PAGE, the MGCF’s Business Plan has been developed and relevant legal and market assessments have been conducted. Based on the findings of the market assessment, the initially determined target markets for the fund are i) Cleaner Alternative Heating Solutions for the Ger Segment, ii) Energy Efficiency Products for Large Energy Consumers, and iii) Affordable Green Housing and Mortgage Schemes. Further preparatory activities will be conducted under the Readiness and Preparatory Program of the Green Climate Fund and the MGCF’s set up of operations will take place through 2017 with a view to commence MGCF’s operations by Q4 2017 to tackle air pollution in Ulaanbaatar city.