Events
Name | organizer | Where |
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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK | MBCCI | London UK Goodman LLC |
NEWS

Mongolia’s green initiatives offer “solid incentive” for environmentally friendly economic activity www.afi-global.org
Mongolia is one of the countries in the world most vulnerable to climate change. Increasingly inhospitable weather conditions have harmed traditional pastoral lifestyles, leading to rising urbanization and increased air pollution. In this regard, the Financial Regulatory Commission (FRC) of Mongolia has partnered with AFI to embrace the potential solutions presented by Inclusive Green Finance (IGF), particularly for non-bank financial institutions (NBFIs) and micro, small and medium enterprises (MSMEs). Celebrating its 13th anniversary with AFI this year, the FRC has been chairing the network’s Eastern Europe and Central Asia Policy Initiative (ECAPI) since June 2021. FRC Chairman, Bayarsaikhan Dembereldash shared his insights on why the recently completed in-country implementation project for inclusive green finance (IGF) has proved pivotal.
AFI: Could you give us a short retrospect on Mongolia’s in-country implementation (ICI) project for inclusive green finance (IGF)? What exactly were the objectives?
D. Bayarsaikhan: The Financial Regulatory Commission (FRC) of Mongolia implemented the Regulated Entities Empowerment on Green Finance Project in collaboration with AFI to increase awareness of the importance of green finance and create a sound environment for green businesses.
As part of the project, we conducted a survey to assess the current state of green finance in Mongolia and identify challenges to green product endorsement among non-banking financial institutions (NBFIs). The findings revealed a major gap in the green performance index of Mongolia’s NBFIs compared to developed countries, exposing the need for a more supportive local infrastructure for green financing. This encouraged us to develop and distribute a manual to raise awareness of green financing, climate risks, and environmental and social governance (ESG) among regulated NBFIs.
We also hosted a Green Webinar which included training on the principles of sustainable development and the significance of green policymaking and green finance. Microfinance institutions that participated in the training expressed their interest in exploring increased green activities in their future operations.
In conclusion, I think it’s plausible to suggest that the project has had a significant impact on the promotion, perception, and initial development of inclusive green finance initiatives in Mongolia.
AFI: Which green finance products and recommendations were launched for Mongolia’s NBFIs? And how could these support IGF in the country?
D. Bayarsaikhan: To begin with, the FRC pursues policies that favor green investment in regulated sectors. It does this by promoting environmental and social governance (ESG) reporting and encouraging initiatives directed at green loans and risk management within the sector. The President of Mongolia has also shown his support for green policymaking by initiating the Green Finance Regional Forum – a series of high-level events centered on intensifying regional cooperation, reducing climate change, and developing sustainable and green finance. Finally, the country also adopted a Green Taxonomy in 2018 which facilitated banks’ and investors’ provisions of green loans and supported them in acquiring all the necessary loan categories and definitions of green products. In conjunction, all these green initiatives have helped lay the groundwork for a more environmentally friendly financial sector. In light of this, here’s a brief overview of what’s been achieved so far:
In 2022, the Financial Stability Council approved the National Sustainable Finance Roadmap, where major green goals were put forward for NBFIs and the broader financial sector, all of which are set to be implemented in stages over a period of 2-3 years. These include creating a favorable policy environment for sustainable financial development, directing fiscal and financial initiatives to green development, improving environmental and social governance risk management systems, and promoting transparent and open reporting among financial institutions.
As part of the Roadmap, the FRC committed to covering 5% of total NBFI loans with its green loan portfolio. To achieve this objective, NBFIs have been submitting Green Loan Reports to the FRC since the second quarter of 2022. In addition, the FRC approved a guidance model for developing environmental and social governance (ESG) risk management regulation. Designed to diversify the range of green loans available, the ESG risk management regulation also helps NBFIs to create a suitable environment for the introduction of sustainable finance.
AFI: Can you explain how green loans can contribute to sustainability?
D. Bayarsaikhan: When providing green loans and services, credit providers consider whether applicants’ products or services meet the environmental and social governance standards set out in the green credit methodology. In other words, environmentally friendly projects are more likely to receive financial support. Projects are subject to various green measures and requirements, including the introduction of sustainability factors into business operations and decision-making, using projects’ performance as a basis for subsequent green loan approval, as well as the overall monitoring and reporting of ESG results. In this sense, green loans provide an incentive for business owners to take responsibility for the environment by meeting the standards and criteria imposed by credit providers.
To optimally allocate green loans, we first need to assess the environmental friendliness of applicants’ activities. In the case of Mongolia, commercial banks began to evaluate the environmental impact of their major customers in 2015. The FRC is working to introduce this rating system to NBFIs.
AFI: What are some of the opportunities presented by the development of green microfinance ecosystems?
D. Bayarsaikhan: Micro-finance ecosystems provide NBFIs and business owners with the chance to not only mitigate and build resilience to the impact of climate change but also to do their part in caring for their immediate environment and preserving it for future generations.
Micro-insurance with low premiums is a good example of a powerful tool for overcoming economic shocks brought on by natural disasters, and for providing economic stability. We have seen this in countries with well-developed insurance ecosystems. Green insurance and green loans present even more potential progress as low-cost services that encourage citizens and businesses to be more environmentally friendly, providing them with a solid incentive to plan, monitor and improve the impact their activities have on the environment. In order to inform and encourage business owners to commit to the concept confidently, the FRC also issued an in-depth definition of green insurance and created a legal framework governing the provision of green insurance products – three of which are already being offered by insurance entities.
If approached strategically, I think microfinance ecosystems have the potential to provide even positive changes to our environment in the future. For instance, according to statistics, green loans accounted for a very low percentage of the total loan balance issued by commercial banks. Therefore, I’d say there is an opportunity in diversifying green products and services by facilitating and simplifying individuals’ access to them. This can be achieved by implementing more optimal, user-friendly policies in microfinance institutions, thereby creating a more favorable green microfinance ecosystem for individuals and entities alike.
Lastly, our hope is that in the future, green microfinance ecosystems will trigger “green competition” allowing businesses’ success to be exclusively determined by their level of environmental friendliness – a future where profit will be directly proportional to climate action.
AFI: What can we expect from the FRC’s next steps in IGF?
D. Bayarsaikhan: As I mentioned before, Mongolia adopted a green taxonomy in 2018. It was one of the first countries to do so. The FRC is now working on revising and updating the taxonomy to include the characteristics of current microfinance institutions and insurance companies.
While NBFIs have started introducing green credit products and services, the FRC continues to pursue policies to improve their green capacity and ensure their enforcement of regulations on environmental and social governance (ESG) standards, risk assessment, and reporting. In the near future, the FRC also hopes to further increase financial literacy and public awareness of green products and services.
Lastly, as a result of the successful implementation of the in-country implementation project for inclusive green finance (IGF), we expect more advanced, innovative, and environmentally sustainable products and services to enter the market, with the necessary legal frameworks and low-cost financing to support them.

S. Korean chicken burger franchise Mom's Touch to enter Mongolia www.en.yna.co.kr
South Korean chicken burger chain Mom's Touch&Co. said Tuesday it inked a master franchise agreement with Mongolia's Foodville Farm LLC, in its first steps to enter the central Asian country.
Foodville Farm is an independent company established by the local franchise operator Monbakery LLC to expand the Mom's Touch brand in Mongolia. The company operates the South Korean coffee franchise Caffe Bene and bakery chain Tous les Jours in the Asian country.
The South Korean chicken burger franchise said it has decided to enter Mongolia due to the country's rapid economic growth, a relatively young population and a growing interest among Mongolians in Korean food, and products from K-pop and the broader Korean Wave.
Experts said the Korean Wave generated by K-pop and TV dramas could turn fans in foreign countries into active consumers of South Korean products.
Mom's Touch's first Mongolian restaurant is set to open in the first half of this year. The company plans to add more than five stores by the end of the year, it said.

"Steppe Metal Powder" to Cooperate with MUST and Kongju National University www.montsame.mn
On March 29, 2023, the Center for Advanced Materials and Parts of Powder (CAMP2) of Kongju National University of the Republic of Korea, Mongolian University of Science and Technology (MUST), and Steppe Metal Powder LLC signed a Memorandum of Understanding at Cheonan Campus of Kongju National University.
The MoU ceremony was attended by former Minister of the Ministry of Education and Culture, Chairman of the Board of Steppe Metal Powder LLC, Tsagaan Puntsag, Dr. Soon-Jik Hong, Director of CAMP2, D. Tsolmonbaatar, Director of the Research and Technology Department of MUST, Dr. Moon Sohn, Manager of the "Cultural Heritage Preservation and Protection Project," and B. Askhar, Executive Director of Steppe Metal Powder LLC.
Within the scope of the MoU, the parties will prioritize joint research, development, and production of advanced powder materials and spare parts based on them.
Professor Soon-Jik Hong, Director of the CAMP2, said he is looking forward to exchanges and supply chains between the Republic of Korea and Mongolia in the field of powder metallurgy, particularly in terms of advanced technology, equipment, human resources, and metals.
Chairman of the Board of Steppe Metal Powder LLC, Tsagaan Puntsag said that Mongolian and Korean universities, which represent the academic cornerstones of the two countries, are now starting to cooperate with the private sector, creating new opportunities in progressing the level of industrialization in Mongolia.
The research and analysis effort of the two universities will focus on the development of the quality of the products processed by the metal powder plant established in Mongolia, which is a strong impetus for the university-industry cooperation to a new level, said D. Tsolmonbaatar, Director of the Research and Technology Department of MUST.
Prime Minister of Mongolia, Oyun-Erdene Luvsannamsrai, visited South Korea in February and held negotiations to enhance cooperation with economic content and increase trade and investment. Executive Director of Steppe Metal Powder LLC said, “in this sense, I feel that the South Korean businesses and institutions are favorable and interested in developing the cooperation. I am happy to cooperate with the top materials science university in South Korea when the company is focusing on increasing its competitiveness in the overseas market.
The day after the signing of the MoU, Dr. Sung-Soo Won, President of Kongju National University, and Dean of the School of Engineering, Dr. Keum-chul Yang, received and met the representatives of MUST and business delegates from Mongolia and expressed their active support for cooperation between the parties.

Mongolia stockpiles 22.9 tonnes of gold in 2022 www.news.mn
The central bank of Mongolia or Mongolbank purchased a total of 22.9 tonnes of gold in 2022 from legal entities and individuals, up 10 percent from the previous year.
As of December, the central bank’s average gold purchase price had been MNT 207,625 per gram.
Purchasing gold is one of the key ways for the central bank to ensure economic stability by consistently increasing foreign currency reserves.
Mongolia’s foreign exchange reserves stood at USD 2.9 billion t the end of November, up 5.3 percent from a month earlier, but down 29.5 percent from a year earlier.
Central banks across the world typically hold gold as part of their foreign exchange reserves.

Prudent use of antimicrobials discussed among herders www.fao.org
The “Action to support implementation of Codex AMR Texts (ACT)” project was presented at the Herders Forum in Mongolia on 2 March 2023, where more than 400 herders, livestock specialists, and local governors discussed the government's policies for the development of the agricultural sector, livestock production and responsible and prudent use of antimicrobial drugs and food safety.
“This was a good opportunity to present the ACT project and discuss the responsible and prudent use of antimicrobial drugs in livestock. Our survey, where we interviewed almost 500 herders in 2021, showed that most herders use antimicrobials, and they acquire the antimicrobials through the local veterinarians, however, without prescription and often without further advice on how to use them“ said Enkhtur Byakharjav, National Project Coordinator in Mongolia, interviewed by the main TV channel of Dornogovi province about the foodborne AMR and its risk.
According to Byakharjav, Mongolia has a low population density and 20 times more livestock than people. He noted that livestock-based agriculture has been a big part of the Mongolian economy for years with agriculture products contributing to 80 percent of the national economy. Livestock herding is a source of income for the majority of the rural population. Byakharjav added that low population density, households in remote locations, and poor transportation infrastructure challenge the delivery of veterinary services. Therefore, most herders end up purchasing over-the-counter medicines, leading to the use of drugs and antibiotics, which is a risk to food safety and AMR.
Because of the uniqueness of the agrifood systems in Mongolia, the ACT project has tailored several different activities in Mongolia to raise awareness of Codex texts, with a special focus on foodborne AMR, especially among herders and veterinarians.
“It would be good to have more training on antimicrobial resistance and antimicrobial use. This would help herders to address the challenges they are facing today,“ noted Mungunkhuu Uul-Uvgun, Director of the Veterinary Department of the Dornogovi province.
The ACT project is supporting the implementation of Codex standards related to the containment and reduction of foodborne AMR and monitoring and surveillance of antimicrobial use and resistance. By supporting better management of foodborne AMR in Bolivia, Cambodia, Colombia, Mongolia, Nepal, and Pakistan, the project will contribute to improved access to international markets and protect consumers against the risks posed by foodborne AMR.

Mongolia to protect safety of tourists by law www.akipress.com
The Mongolian government has declared 2024 the Year of Tourism. The draft law on tourism was discussed at a regular meeting of the Mongolian People's Party faction in parliament on March 3.
Head of the working group Ganhuyag Khassuur noted that the government and the private sector will develop a master plan. Construction and necessary things will be done in accordance with the number of attracted tourists.
"We believe that funding should be provided in three ways. The private sector will be able to build recreation areas along the road and the airport. Work will be done to attract tourists in the four seasons of the year. In terms of taxes, foreign tourists will receive VAT refunds on the goods they purchase. The safety of tourists will be protected by law," the MP explained.

Real-Time Digital Simulator Starts Operating www.montsame.mn
Real-Time Digital Simulator (RTDS), designed for non-stop monitoring and analysis of all modes of the integrated power system has started operating as JICA has handed over the equipment to the National Dispatching Center, state-owned joint stock company. Chief Representative of JICA Mongolia Office Mr. Tanaka Shinichi, and Executive director of the Center, G. Balzhinjam signed the handover document.
The RTDS worth USD 500,000 is being applied to model and simulate the energy system of Mongolia with real data and it will make a significant impact on the step-by-step planning of actions to be implemented in the short, medium and long term to analyze energy system stability and define future tendency in detail. Used in more than 50 countries, the system electronically simulates data from real sources such as diesel generators, solar generators, and battery generators.
During the RTDS handover ceremony, Deputy Minister of Energy M. Bayarmagnai said, "For 50 years since the establishment of friendly relations, Mongolia and Japan have been developing all-round cooperation in social, cultural and infrastructure sectors. In particular, in the energy sector of Mongolia. This system detects malfunction or failure in the energy system by overseeing the system online, monitors how the sources support each other, and provides possibilities for fewer accidents. Therefore, it will enable operational security and protection from possible financial risks."

CS:GO Mongolian team set to play Paris Major qualifier under new name www.news.mn
Mongolian players Garidmagnai “bLitz” Byambasuren, Sodbayar “Techno” Munkhbold, Baatarkhuu “Bart4k” Batbold, Tuvshintugs “Annihilation” Nyamdorj, and Chinguun “hasteka” Bayarmaa have revived the tag “The Mongolz” ahead of the BLAST Paris Major Asia RMR and will no longer play under IHC in the tournament, according to the event organizer MESA.
The Mongolians peaked at 18th in the world in February, according to HLTV’s ranking, following their participation in IEM Katowice, when they eliminated paiN Gaming, FURIA, and most notably Cloud9 from the tournament. Dot Esports has reached out to IHC but didn’t receive a response at time of writing.
This news comes just mere days after IHC signed hasteka to complete the lineup and fill the void left open by the departure of star player Tengis “sk0R” Batjargal in early March.
IHC is backed by a cryptocurrency coin of the same name and the future of its esports operations has been in doubt ever since three founders of Ih Bit Global were arrested in February.
The Mongolz has been a mainstay tag in Mongolia’s CS:GO scene since 2015, when the country’s then-best player Enkhtaivan “Machinegun” Lkhagva used it with his teammates in premier tournaments like IEM Katowice in 2016 and IEM Oakland in 2017.
The Mongolz are due to play Nikola “Lobanjica” Mijomanović and Shuaib “D0cC” Ahmad’s Twisted Minds in the opening round of the BLAST Paris Major Asia RMR on Thursday, 6 April at 1:30am CT.
The tournament will feature eight Asian teams playing in a double-elimination bracket and only the top two will book a spot at the BLAST Paris Major in May, which will be the last Valve-sponsored tournament for CS:GO due to Counter-Strike 2’s pending worldwide launch this summer.

Mongolia: squeezed between China and Russia fears ‘new cold war’ www.theconversation.com
Mongolia’s prime minister, Luvsannamsrain Oyun-Erdene, recently expressed his country’s fear that the world is heading towards a new cold war as the relations between Russia and China and the west – particularly Nato – have taken a turn for the worse. “It’s like a divorce,” he said. “When the parents divorce, the children are the ones who get hurt the most.”
The country sits landlocked between Russia and China and is fearful of antagonising either. It gets much of its power from Russia, and China buys much of its exports – mainly agricultural goods and minerals such as copper. By pursuing a nimble foreign and trade policy since it transitioned to a multiparty democracy in the early 1990s, Mongolia has established a stable economy, receiving a thumbs up from the World Bank in its latest country report:
With vast agricultural, livestock and mineral resources, and an educated population, Mongolia’s development prospects look promising in the long-term assuming the continuation of structural reforms.
But the war in Ukraine has brought home to Mongolia just how carefully it must now navigate its foreign and trade policies to remain independent.
Smooth transition to democracy
From 1921 to 1990 Mongolia was effectively part of the Soviet bloc, although not part of the Soviet Union itself, the country’s centralised command economy was almost entirely dependent on Moscow for survival.
The collapse of communism in the early 1990s resulted in what proved to be a smooth transition. The then leader, Jambyn Batmönkh, refused to even consider quelling pro-democracy demonstrations, instead saying: “Any force shall not be used. There is no need to utilise the police or involve the military … Actually, these demonstrators, participants, and protesters are our children.”
His resignation in 1990 and the emergence of Ardchilsan Kholboo (Mongolian Democratic Union) paved the way for the development of a multiparty democracy. The June 1993 presidential election in Mongolia, which was ruled as free and fair by the International Foundation for Electoral Systems, saw the incumbent president, Ochirbat Punsalmaa – who had been appointed after a ballot by members of the existing Presidium of the People’s Great Khural (the national assembly) – elected for a four-year term.
A new constitution was adopted, with a three-part structure under the speaker of the parliament, the prime minister and the president and, while there have been instances of political corruption, Freedom House gives the country a high rating for both political rights and civil liberties.
All of which cannot disguise that the fledgling democracy remained wedged between (at the time chaotic) Russia and an increasingly assertive and authoritarian China. The obvious policy for Mongolia to pursue was to attempt to balance the two great powers in the region.
Initially, Mongolia’s foreign policy relied heavily on “omni-enmeshment”. This basically meant building relationships with as many partners as possible, both regionally and globally – including, significantly, the US.
But since 2000, Mongolia has embraced the policy concept of “balance-of-power” to reduce the country’s reliance on any one nation. To this end, they have partnered with strategic states in Asia, such as Japan and India, and rekindled military ties with Russia by entering a “strategic partnership” and conducting joint military exercises, while still maintaining a strong relationship with China. Mongolia has also strengthened bilateral security relations with the US.
Mongolia’s relationship with China is complicated by the fact that a significant part of what was traditionally Mongolia is now an “autonomous region” of China (Inner Mongolia), with a population of ethnic Mongolians larger than that of Mongolia itself. This, and the activities of secessionist groups in the province, is a persistent point of conflict between China and Mongolia.
Third neighbours
But Mongolia sees its independence increasingly threatened as Russia and China grow closer. Since the demise of the Soviet Union, Mongolia has adopted a strategy of maintaining strong ties with “third neighbours” – countries that embrace democratic values but also practice market economics, including the US (it was a term first articulated with connection to Mongolian foreign policy in August 1990 by then US secretary of state James Baker).
The US and Mongolia formalised their relations as a Strategic Partnership in 2019 and in 2022 – clearly with one eye on Ukraine – the two countries announced they were deepening the partnership “in all areas of mutual interest”, including an “open skies” agreement which would guarantee scheduled nonstop passenger flights between the two countries. The US – with other third-neighbour allies – also takes part in the annual Khaan Quest military exercises.
Dangerous times
The war in Ukraine has brought the precarious geopolitical situation in Ukraine into sharp focus. The latest joint declaration from the US-Mongolia Strategic Partnership stressed that “disputes should be resolved by peaceful means and with respect for the United Nations Charter and international law, including the principles of sovereignty and respect for the independence and territorial integrity of states, and without the threat or use of force”. It added: “To this end, both nations expressed concern over the suffering of the Ukrainian people.”
Mongolia has abstained from the UN votes condemning Russia’s invasion of Ukraine, while also refusing to criticise the sanctions imposed on Russia by the west, despite the fact that they have affected Mongolia – for example, sanctions against Russian banks have made it difficult to pay for its imports from Russia.
And, for all its efforts to forge ties around the globe, Mongolia remains heavily dependent on both Russia and China. The prospect of a new cold war setting the west against the Beijing-Moscow axis is a major concern for Mongolia. As Elbegdorj Tsakhia, a former prime minister and president of Mongolia – now a member of The Elders group of global leaders told Time magazine in April 2021:
“I feel that we have just one neighbour. China, Russia, have become like one country, surrounding Mongolia … Every day, we face very tough challenges to keep our democracy alive. Mongolia is fighting for its survival.”
Jo Adetunji
Editor, The Conversation UK

Why Investing in Water Storage Matters in Mongolia’s Gobi Desert www.thediplomat.com
Given that Mongolia has been ranked as one of 36 high-water-risk countries in the world, the recently concluded U.N. Water Conference touched on issues of immense importance to the country.
The U.N. Water Conference ended on March 24 in New York and emphasized that more robust actions are needed to manage, protect, and preserve water sources and improve lives. The conference generated more than 700 commitments by member states, multilateral banks, the private sector, and NGOs. It brought together many stakeholders, including heads of state, world business leaders, civil society, young people, scientists, academics, indigenous people, U.N. agencies, and others to urge the world to accelerate Sustainable Development Goal 6 (water and sanitation for all by 2030) and to make significant progress across all SDGs.
During the conference, U.N. Secretary General António Guterres highlighted that progress on water-related goals remains significantly low, thus undermining the entire sustainable development agenda. Moreover, he urged countries and businesses to work together to tackle issues of water overconsumption and the impacts of climate change to prevent further conflicts and forced migration due to increasing water scarcity worldwide. Guterres said, “We are draining humanity’s lifeblood through vampiric overconsumption and unsustainable use and evaporating it through global heating. Governments must develop and implement plans that ensure equitable water access for all people while conserving this precious resource.”
What can can the government of Mongolia do to tackle water scarcity issues in the Gobi Desert region?
Groundwater is the main water source of drinking and industrial water in Mongolia. This is particularly true for the Gobi Desert region. The Gobi Desert constitutes 30 percent of the country’s territory. In this region, both livestock, which numbered more than 1.8 million as of 2018, and mines, of which there were more than 70 as of 2020, rely on groundwater. Both sectors are regarded as important pillars of Mongolia’s economy.
The Gobi Desert region in Mongolia hosts major mining developments, including the Oyu Tolgoi copper-gold mine, the Tavan Tolgoi coal mines, the Mongolian Alt Corporation coal mines, the Energy Resources coal mine, and the Erdene Resources gold mine among others. All these mining companies use underground water from the Galba Doloodyn Uush River Basin (see figure below). It has been estimated that mining will be the dominant user of water (83 million cubic meters per year) in Mongolia by 2025.
With intensified mining and ore processing, the use of groundwater is increasing dramatically. Mining companies extract water from the Galba Uush Doloodyn Gobi Basin (GUDGB) for their mines; GUDGB has approximately 236 million cubic meters/year of renewable groundwater resources available. Based on estimates of water consumption of approximately 108.2 million cubic meters/year to 2025, there appears to be no immediate water shortage. Recognizing the huge demand by the mining industry, the government put in place a plan to transfer surface water by diversion from Orkhon and Kherlen Rivers. However, the plan hasn’t yet been implemented. Increased mining development with no additional water supply puts more pressure on groundwater reserves.
Many herders in the Gobi Desert have observed water shortages in their wells. Research studies also indicate that climate change poses significant challenges to herders as variability and water extremes increase. The frequency and severity of climate-related natural disasters such as dzuds (extreme winter storms with heavy snowfall, along with droughts, floods, and sand and dust storms) are also projected to increase, with harmful effects on agriculture, livestock, water and land resources, infrastructure development, and the public’s health and well-being.
The availability of water for livestock is one of the toughest issue among Mongolian herders. The scaling up of open-pit mining has fractured and physically destroyed pasturelands, and dust from heavy trucks has deteriorated the living conditions of herders. In a broader sense, this situation threatens not just a few herders, but the livestock sector’s future in the region. In the long run, water scarcity could become a major limiting factor for the economic growth of Mongolia.
In the Southern Gobi region, projections show that expected water demand could exceed available resources in the high-water demand scenario before 2030. At the same time, more mining projects and processing plants are being approved by the government. To ensure sustainable water resources management in the region, and enable long-term economic development, the Mongolian government must invest in water storage in the Gobi region in order to ensure water access to local herding communities and other water stakeholders.
In the Gobi region, groundwater is limited, and future water demands could generate conflicts between mining companies and local communities. Actions to improve water storage in the region should be planned well and implemented immediately.
Why is water storage improvement needed?
Water storage provides three major services that support economic growth, people, and the Earth. It ensures the availability of water, reduces the impacts of floods, and provides a variety of services for economic sectors. In the Gobi region, there is a huge demand to find water solutions. Government and water stakeholders should look for alternative water supply options that are sustainable and efficient. Specifically, solutions such as improving current natural water storage and investing in built water storage systems are of high importance.
Water storage is becoming an essential tool for securing water during the dry season and adapting to climate change. Climate change brings less predictable and more variable precipitation, it makes reliable water supply difficult, affecting the economy and livelihoods. Water storage offers the potential to address these issues by increasing water availability and reducing the impacts of floods.
For instance, herder well rehabilitation and maintenance is one way to improve water storage in the Gobi, and scientists have found a low-cost way to make clean drinking water from the air. There are many technological innovations developed and tested in the world. We need to explore them and find ways to adopt these in the Gobi Desert context based on needs and conditions. Making bioswales is another cost-effective and nature-based solution for water storage.
Improving natural water storage will contribute to addressing water scarcity in the region and prevent potential conflicts, and of course, promote economic growth. Sustainable water solutions are of crucial importance for societal development, human life, and for the Earth.
GUEST AUTHOR
Bolormaa Purevjav
Bolormaa Purevjav is a fellow at the Institute of Asian Research, University of British Columbia.
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