Prime Minister Submits Budget Cut Amendments Amid 7.7% Economic Growth www.capitalmarkets.mn

Mongolia's economy grew by 7.7% in the first half of 2026, with real GDP reaching MNT 16.4 trillion. This is the highest first-half growth of the last three years and exceeds the 2026 annual forecasts of international institutions such as the ADB and the World Bank. Yet on 20 August, with those figures barely a week old, the government submitted a 2026 budget amendment to the State Great Khural, cutting a total of MNT 1.4 trillion in spending. Presenting it, Prime Minister N. Uchral said:

“The state is tightening its belt as it should, and we are amending the budget by MNT 1.4 trillion.”

The state tightening its belt while the economy posts high growth is not a contradiction once the composition of that growth is examined. The 7.7% was produced by a narrow set of factors that did not reach households, investment, or the budget. 

Mining was the main contributor to growth
Real value added in the mining and quarrying sector rose by 31.5%, accounting on its own for 3.9% of total economic growth. Agriculture contributed 1.4%, services 1.8%, and industry and construction 0.5% of positive impact respectively. The main drivers of the growth were production at Oyu Tolgoi and coal exports. According to Rio Tinto's report, Oyu Tolgoi's copper production in concentrate reached 198 thousand tonnes in the first half, up 31% from the same period of the previous year, while coal exports reached 65.6 million tonnes in the first seven months, an increase of 59%. The 7.7% growth therefore resulted from strong mining production and export growth rather than from a broad-based recovery of the economy.

Exports rose and the external balance improved
One of the most positive indicators of the economy in the first half was the external sector. The current account posted a surplus of USD 207 million, reversing the USD 1.75 billion deficit of the same period of the previous year. As of the first seven months, exports reached USD 12.2 billion, up 57.5%, while imports increased by 10.4%, bringing the trade surplus to USD 5.0 billion. However, part of the export growth was driven by commodity prices. For example, export revenue from copper ore and concentrate rose by 89.7%, while the physical volume increased by only 23%.

Domestic demand and investment growth slowed
Although foreign trade indicators improved, domestic demand and investment activity remain weak. Gross capital formation fell by 14.5%, and within it gross fixed capital formation fell by 11.0%, reducing GDP growth by 6.5%. At the same time, real household consumption grew by only 0.5%, a marked slowdown from the 6.5% growth of the same period of the previous year. Behind this lie price and labour market pressures. Inflation reached 13.0% in July, and the number of employed people fell by 22.1 thousand in the second quarter. These are precisely the pressures the budget amendment is designed to address, and they explain why a year of record exports has not translated into relief for households. 

The amendment reallocates rather than cuts
Fiscal pressure is equally real. As of the first seven months, the equalised budget balance recorded a deficit of MNT 2.2 trillion, an increase of 70% from the same period of the previous year, even as export earnings rose 57.5%. The amendment provides for savings of MNT 433.4 billion from current expenditure, MNT 758 billion from the capital city's securities, and MNT 249.5 billion from capital expenditure. However, this is not so much a reduction of the deficit as a reallocation of spending. Almost all of the MNT 1.44 trillion in savings is planned to be spent on new outlays. The largest share is the education sector's outstanding wage costs at MNT 675.5 billion, with the remainder allocated to base pensions for the elderly, wage increases in the health, culture and sports sectors, food supply, and energy subsidies. According to the Prime Minister, the amount actually saved is MNT 49.5 billion. 

The International Monetary Fund's 2026 Article IV assessment, published on 6 August, warned of precisely this risk. The IMF considered the submission of the budget amendment to Parliament a priority, but advised refraining from further expanding current spending, particularly wages and pensions, and rebuilding fiscal buffers. It also noted growth of 7.8% through April while emphasising that underlying growth momentum remained subdued, which is consistent with the composition of the first-half figures. In this sense, the budget amendment is not merely a spending-cut measure but a policy instrument for cushioning the risks associated with high inflation and with energy and fuel supply, while protecting household incomes. 

From the pace of growth to the sustainability of growth
Strong growth has not removed the two main risks: high inflation and the budget deficit. While mining exports are supporting economic growth, the 13.0% rise in consumer prices is putting pressure on domestic demand and household purchasing power. The fact that, alongside spending cuts, the budget amendment includes decisions to increase wages, pensions, and food and energy expenditure shows that despite high economic growth, pressure remains on people's real incomes and cost of living. Therefore, going forward, in addition to maintaining the pace of growth, it is important for Mongolia's economy to ensure price stability, improve fiscal discipline, and channel mining revenues into investment that raises long-term productivity. Although the 7.7% growth of the first half of 2026 is a strong indicator, the main challenge remains turning this growth into more sustainable and broad-based economic growth.

COP17 High-Level Segment Opens www.montsame.mn

The High-Level Segment of the 17th Conference of the Parties to the United Nations Convention to Combat Desertification (COP17) began on August 24.

Ahead of the opening ceremony, President Khurelsukh Ukhnaa, Minister of Foreign Affairs and COP17 President Battsetseg Batmunkh, UN Deputy Secretary-General Amina Mohammed, Executive Secretary of the UN Convention to Combat Desertification Yasmin Fouad, and other distinguished guests and ministerial-level delegates planted trees.

President Khurelsukh officially opened the High-Level Segment with an address. He said climate change, desertification, land degradation and biodiversity loss have become global challenges rather than the problems of any single country, posing an increasingly serious threat to humanity and the future of the planet. Efforts to combat advancing desertification, dust storms, water scarcity, food crises and ecosystem degradation must therefore be coordinated, integrated, long-term, sustainable and mutually reinforcing, he stressed.

The President expressed confidence that the participants would not merely discuss the challenges facing the world, but would jointly identify solutions and deliver concrete decisions and results for a peaceful and green future.

President Khurelsukh said Mongolia believes that combining the traditional knowledge of Mongolians in respecting and protecting nature with modern science, technology and innovation can make an important contribution to finding solutions for sustainable land management, ecosystem balance and people-centered development.

He stressed that desertification, land degradation and drought should not be viewed solely as environmental issues, but addressed comprehensively in connection with food supply and security, water resources, livelihoods, sustainable development, and global peace and security.

The President also emphasized the importance of considering land use, climate change, biodiversity and food systems not as separate issues, but as closely interconnected, and of implementing policies based on science, traditional knowledge and local experience.

Mongolia, which is home to and has safeguarded one of the world's largest remaining temperate grassland ecosystems, experiences the impacts of climate change, desertification and land degradation in daily life due to its landlocked location and predominantly arid and semi-arid environment, he said.

The fact that much of Mongolia's territory is affected by land degradation and desertification has direct consequences not only for the environment, but also for the economy, food supply and security, livelihoods and the sustainability of Mongolia's nomadic heritage, the President noted.

He highlighted Mongolia's national movements, including “Billions of Trees,” “Food Revolution,” “White Gold,” “Blue Gold,” and “Healthy Mongolian,” which seek to restore land, expand forest resources, protect soil, water and pastures, strengthen food supply and security, promote sustainable rural development and create jobs.

President Khurelsukh called for a fair international system that directs global efforts to address the challenges facing developing countries and countries in dry and drought-prone regions, ensuring that financing, technology and capacity reach the countries, regions and communities that need them most.

He called on governments, international financial institutions, development partners and the private sector to direct more grants, concessional financing and green investment toward land restoration, drought resilience and sustainable livelihoods.

The President further stressed that the participation of herders, farmers, local communities, women, young people, children, civil society, researchers and the private sector must be ensured at every stage of policymaking, implementation and monitoring, describing inclusive participation as the foundation for fair, effective, open and sustainable solutions.

He noted that Mongolia is working to increase public participation and youth engagement through initiatives such as the national Youth Participation in Combating Desertification Forum and aims to engage the private sector in cooperation on sustainable land management, investment and innovation in line with the UNCCD's Business for Land initiative.

Mongolia will chair the Conference of the Parties to the UN Convention to Combat Desertification for the next two years. The country's proposed “Steppe Action Agenda” is based on three pillars: the Rangelands Flagship Initiative, the Integrated Water and Land Management Initiative, and the Nature-Based Solutions for Sustainable Infrastructure Initiative.

COP17 Is a New Platform for Mongolia's 'Ecological Diplomacy' www.montsame.mn

For the first time, Mongolia is serving as a global platform for ecological diplomacy.

COP17 is taking place in Ulaanbaatar under the theme ""Restoring Land, Restoring Hope." The country has welcomed governments, businesses, civil societies, scientists, herders, and other participants from 197 nations.

Hosting the Conference of the Parties to the UN Convention to Combat Desertification (COP17) is, for Mongolia, not merely a major environmental event but a matter of strategic significance. As it is tied to foreign policy, the economy, national branding, and the country's "third neighbor" diplomacy. In that sense, COP17 can be seen as a new platform for "ecological diplomacy."

Here, Mongolia is not only the host but is also able to present its own positions, experience, and initiatives on the global stage in areas including:

Combating desertification

Protecting rangelands

Sustainably using water resources

Adapting to climate change

Reducing land degradation

In short, Mongolia is turning its own challenges into global ones.

Owing to its geographic location and harsh climate, Mongolia is among most vulnerable to climate change. As a result, summer precipitation has fallen rapidly, droughts have grown more frequent, and desertification is spreading.

The country has broad opportunities to share its experience with the world and develop joint solutions to this challenge. As COP17 enters its second leg, final decisions have not yet been reached. For my part, I hope the conference will produce many important outcomes and forms of cooperation that Mongolia genuinely needs.

There are several outcomes I would most like to see come out of COP17. First and foremost would be a major, comprehensive national program to combat desertification—one bringing together tree planting, water retention, land restoration, and the protection of rangelands from degradation. That would be the most significant change of all. Second, greater investment and financing directed toward fighting desertification and protecting the environment. Third, new opportunities for technological and scientific cooperation with Mongolia. And most importantly, the incorporation of COP17's decisions into Mongolia's own national budget and policy—so that what is agreed here is actually carried out at home.

Most significantly of all, COP17 matters for Mongolia's foreign policy. Viewed through that lens, the conference carries wide-ranging significance, offering a rare chance to bring together several strands of Mongolian diplomacy at once—its multilateral engagement, as I mentioned before its "third neighbor" policy, its ecological diplomacy, its international standing, and its economic diplomacy.

COP17 is a historic moment not only for Mongolia but for East and Central Asia as a whole. Mongolia is the first country in Central Asia to host a COP, and this is the first of the three 2026 Rio Convention COPs to take place.

1. Elevating Mongolia's multilateral diplomacy to a new level

Although Mongolia sits geographically between two large neighbors, it regards multilateral diplomacy as one of the key pillars of its foreign policy. COP17 becomes a major arena for implementing that policy. By hosting a high-level UN convention meeting involving 197 countries in Ulaanbaatar, Mongolia can strengthen its image as:

An active participant within the UN system

A country capable of creating international negotiating platforms

A country that takes the initiative on shared global issues

The UNCCD itself frames land degradation, desertification, and drought as global issues linked to the economy, food, water, livelihoods, and stability. In this regard, Mongolia has the chance to shift from being seen as a "small country" toward a diplomatic posture as a "country that offers solutions." Over the next two years, Mongolia will also preside over the UNCCD COP.

2. Adding new substance to the "third neighbor" policy

This, in my view, is one of the most interesting effects on Mongolian foreign policy. Traditionally, Mongolia's "third neighbor" policy has been closely tied to political, security, and economic cooperation. Through COP17, a new dimension is added. Mongolia—which has many partners, including Japan, the Republic of Korea, the United States, the European Union, India, Australia, and Central Asian countries—can expand cooperation around shared interests: climate, water, land restoration, rangelands, green technology, and financing. This offers a chance to broaden the "third neighbor" policy from a traditional security concept toward sustainable-development diplomacy.

3. Using Mongolia's nomadic culture as "soft power"

This is a major advantage that sets Mongolia apart from other countries. The year 2026, designated the UN International Year of Rangelands and Pastoralists, coincides with COP17. Mongolia holds a special position in bringing rangeland and pastoralist issues to the international level. From this, a new diplomatic initiative can emerge: Nomadic culture → Sustainable pastoralism → Global ecological solutions. In this way, nomadic culture becomes not merely a tourism brand but a tool of Mongolia's soft-power diplomacy.

4. Connecting Mongolia with new international finance and technology partners

The COP17 discussions are not only about environmental protection—financing for land restoration, private-sector participation, technology transfer, and scientific cooperation are also central themes. This directly benefits Mongolia's economic diplomacy. We can build a new chain: COP17 → international organizations → development banks → investors → technology companies → Mongolian projects. In particular, Mongolia's adoption of its first law on climate change in July 2026 has strengthened the policy foundation ahead of COP17.

5. Rebalancing Mongolia's international image from "mining" toward "green development"

To much of the international community that knows us at all, Mongolia evokes the image of the combination of "coal + copper + mining + nomadic culture." COP17 offers the chance to build a different image — a broader identity of "Mongolia = a Champoin against desertification + nomadic culture + land restoration + green development." An image like that carries real weight, particularly in relations with partners who place great importance on the green transition and sustainable financing.

6. An opportunity to diversify Mongolia's "diplomatic brand"

Mongolia can build a distinctive diplomatic brand combining traditional nomadic culture, a heritage of environmental stewardship, and modern ecological solutions. This would present Mongolia not merely as a country "caught between two great powers" geopolitically, but as one that contributes to solving shared global challenges.

COP17 can therefore leave Mongolia with three kinds of diplomatic "capital":

Diplomatic capital—the standing of its multilateral diplomacy.

Soft-power capital—Mongolia's experience in nomadic culture, rangelands, and conservation.

Economic-diplomatic capital—green investment, technology, financing, and international partnerships.

The greatest positive impact of COP17 on Mongolia's foreign policy, then, is not merely the success of organizing a single conference well, but the opportunity to make it a new direction for the country's foreign policy.

"Restoring Land, Restoring Hope"

By Baatarkhuu Khorloo, PhD in International Studies

ADB launches $92.6 million fund to support sustainable agribusiness in Mongolia www.qazinform.com

The Asian Development Bank (ADB) has launched a new fund aimed at expanding access to finance for herders, cooperatives, small and medium-sized enterprises and agribusinesses investing in sustainable livestock value chains in Mongolia, Qazinform News Agency cites the bank’s press service.

The Green Inclusive Regional Agribusiness Fund (GIRAF) was established with $92.6 million from the Green Climate Fund, under the ADB-supported Aimag and Soums Development Investment Program. An additional $25 million is expected to be provided by commercial banks.

The fund will support sustainable rangeland management, livestock production and rural businesses through concessional loans, credit guarantees, microfinance and grants for green innovation. The initiative is designed to address longstanding financing challenges facing Mongolia’s rural economy.

The GIRAF Fund represents a new approach to financing resilient rural development in Mongolia, said ADB Country Director for Mongolia John Juhyun Jeong.

“By providing tailored financial solutions for sustainable livestock production and improved rangeland management, the fund will help create jobs, strengthen rural economies, combat land degradation and desertification, and build resilience to disasters,” he added.

Temperate grasslands cover approximately 82% of Mongolia and underpin the country’s livestock sector, which accounts for around one-quarter of employment and more than 10% of gross domestic product.

However, Mongolia’s rangelands and the communities that depend on them are facing growing pressures from desertification and land degradation.

The GIRAF Fund will initially deploy $37.5 million, including a $3 million grant, to provide tailored financing for rural businesses. The financing package will include concessional loans, credit guarantees designed to reduce collateral requirements and grants supporting green innovation.

Priority will be given to businesses that have commercial partnerships and benefit-sharing arrangements with herders and herder cooperatives.

The initiative will also introduce a digital traceability and monitoring system using geospatial and remote-sensing technologies. The system will track investments and assess their environmental and socioeconomic impact.

By 2034, the GIRAF Fund is expected to support approximately 500 small and medium-sized enterprises and cooperatives and 1,000 microenterprises.

According to ADB, the initiative will help increase the value generated from livestock products while promoting sustainable rangeland management, land restoration and more resilient livelihoods in rural Mongolia.

Earlier, Qazinform reported ADB had priced a $2 billion 10-year global benchmark bond. 

Mongolia’s Rangelands Can Bounce Back–If the Livestock Model Changes www.blogs.adb.org

Reversing land degradation in Mongolia requires fewer animals, higher productivity, and farming that restores the land instead of exhausting it. This shift can raise incomes and boost resilience for herders and their families.

Mongolia’s grasslands are one of Asia’s great natural assets, covering about 1.2 million square kilometers—an area larger than France and Germany combined. Mongolia’s grasslands sustain pastoral livelihoods, retain water, and underpin a livestock economy that is central to national identity. But these rangelands are under growing stress. Desertification and land degradation are already visible in weaker pastures, thinner vegetation, drying water sources, and less resilience to changing weather patterns. 

As the land struggles, many herders have tried to protect their income by increasing livestock numbers.

Herd growth is also cultural: Nomadic herders see animals as savings, insurance, and pride. The result is a vicious cycle in which more animals graze the same land, soils degrade, the size of herds the land can support falls, animals enter winter in poor condition, and herders become even more dependent on herd size instead of better productivity per animal. 

Recent hard winters—known locally as “dzud”—have made this fragility painfully clear.

The answer is not to weaken pastoralism. It is to help pastoralism become more productive, resilient, and regenerative. 

We could protect and boost household income at the same time as reducing herd sizes gradually, if we provide fair incentives and plan proactively for higher productivity per animal, better raw-material quality, improve herders’ links to value chains. 

Environmentally smart herding practices such as rotating pastures, resting of degraded areas, protection of winter and spring reserves, harvesting water, preparation of fodder, and planned movement of animals can give grasslands time to recover.
 

Gradual reduction in herd sizes, guided by fair incentives and local planning, can ease grazing pressure without cutting household income.

Agriculture that promotes restoration of soil and nutrients can reinforce this transition. Restoring vegetation cover, increasing the organic matter in soil, protecting rivers and streams, reseeding bare patches, and managing manure and fodder systems more effectively all help soil hold more water and resist erosion. 

Healthy soil supports healthier pasture. Healthier pasture supports stronger animals. Stronger animals allow herders to earn more from fewer, better-managed livestock.

Community-based breeding programs offer a practical starting point for this shift. Instead of adding animals, herders work together to improve the quality of their flocks and herds. They select better animals for breeding, keep stronger replacements, and phase out poorer performers, matching breeding choices to what meat, hide, wool, and cashmere processors and markets need. 

Simple tools such as field measurements, fiber testing, animal records, planned mating, and basic offspring monitoring help communities see which animals perform better. Over time, this approach moves income strategies away from “more animals” toward “more value per animal.” This can help lay the foundation for quality‑based competitiveness that can support herders, cooperatives, processors, and local authorities. 

Scaling this change will take more than a single project. Mongolia can become a leader in livestock transformation through a package of mutually reinforcing reforms: community pasture agreements linked to the ability of a section of land to sustain animals; fair livestock taxation or grazing fees that are reinvested locally; pricing that rewards quality in cashmere, wool, meat, and hides; risk-financing tools that soften the blow of disasters; and public investment in veterinary care, breeding support, fodder, water infrastructure, and practical advice and training for herders.

Cooperatives can help pool purchases of supplies, enforce breeding rules, share equipment, and negotiate better prices. Processors can reward traceable, high-quality raw materials. Local governments can back pasture-use planning and protect key reserves. Done responsibly, the result could be transformative. Herders would own fewer but more productive animals. Livestock would enter winter in better condition. Communities would have stronger fodder reserves and face fewer catastrophic dzud losses.

Processors would receive more consistent raw materials. Pastures would have space to regenerate, with land slowly regaining vegetation cover and soils holding more moisture and carbon. Rural households could earn more secure incomes from a smaller ecological footprint.

This is the future Mongolia deserves: prosperous herders, resilient communities, competitive livestock value chains, and restored rangelands. The path begins with one clear idea: productivity, not herd expansion, is the foundation of a nature-positive pastoral economy.

The 17th Session of the Conference of the Parties to the United Nations Convention to Combat Desertification is under way in the Mongolian capital of Ulaanbaatar, and will run until 28 August.
 

Published: 24 August 2026

Author(s)

Au Shion Yee
Director, ADB's Agriculture, Food, Nature, and Rural Development Sector Office

Dustin S. Schinn
Water Resources Specialist, ADB's Agriculture, Food, Nature and Rural Development Sector

China, Arab countries release plan for desertification control at UNCCD COP17 in Mongolia www.bastillepost.com

China and Arab countries will deepen practical cooperation in combating drought, desertification and land degradation in the coming five years, according to an action plan released on Saturday in Ulaanbaatar, Mongolia.

The plan was released at a meeting of the Steering Committee of the China-Arab International Research Center for Drought, Desertification and Land Degradation and the China-Arab Cooperation Workshop, which were held on the sidelines of the 17th session of the Conference of the Parties (COP17) to the United Nations Convention to Combat Desertification (UNCCD).

Drought, desertification and land degradation are pressing ecological challenges shared by China and Arab nations. The action plan outlines concrete initiatives for the next five years, leveraging platforms such as the China-Arab Center and partnership networks to deepen cooperation in key areas including desertification control, degraded land management, and sandstorm monitoring and early warning.

The 17th session of the COP17 to the UNCCD officially commenced on Monday in Ulaanbaatar under the theme "Restoring Land, Restoring Hope." Delegates from UNCCD's 197 Parties, along with representatives from UN bodies, international organizations, civil society groups, research institutions and enterprises, gathered to discuss issues including restoration of degraded land, sustainable land management, drought resilience, and grassland protection and restoration.

Russia exports gasoline to its neighbors, while sales restrictions are in place in 58 regions www.nemoskva.net

Gasoline shortage in Russia intensifies, however, fuel exports continue. Deliveries of motor fuel abroad are carried out under intergovernmental agreements. They are not subject to the export ban imposed by the Russian government. extended until January 31 2027 year.

Mongolia will receive an additional 25 tons of AI-92.
On August 11, Mongolian Minister of Industry Damdinnyam сообщилRussia will supply the country with fuel in excess of the previously agreed volumes. By the end of the month, Mongolia will receive an additional 25 tons of AI-92 gasoline and 5 tons of jet fuel.

Agreements were reached with Rosneft, Gazprom Neft and the Russian Ministry of Energy.

At the same time, Russia is purchasing fuel from India and Belarus.
At the same time, Russia itself is purchasing fuel abroad. In August, gasoline and jet fuel imports will increase. up to 270 thousand tonsAbout a third comes from India. The remaining volumes, according to sources, are transshipped from tanker to tanker off the coast of South Korea and Malaysia.

In June, Belarus became the record holder for deliveries: in 25 days it put 2,4 times more fuel than in the whole of May.

Why is there a gasoline shortage in Russia?
In July, due to attacks on oil refineries, oil refining in Russia fell to a low not seen since 2002. This is approximately a third below the current seasonal norm.

By the beginning of July, gasoline production cover Reuters and Kommersant estimated that this figure was around 65-70% of summer demand.

Restrictions on sales are in effect in 58 out of 89 regions.
According to the BenZinMap portal, restrictions on gasoline sales will be in place by August 15 acted In 58 of 89 regions, localized power outages or price increases were also reported in another 18 regions.

Moon Jae-in to speak at UN desertification conference in Mongolia www.koreajoongangdaily.com

Former Korean President Moon Jae-in departed for Mongolia on Sunday to attend a United Nations conference on desertification and meet with the Mongolian president.

Moon left through Gimhae International Airport in the southeastern port city of Busan and will travel via Incheon International Airport to make a nine-day visit to Mongolia, the host of the 17th session of the United Nations Convention to Combat Desertification (UNCCD) Conference of the Parties.

He is scheduled to give a speech at the session's opening on Monday before attending a luncheon hosted by Mongolian President Ukhnaa Khurelsukh.
On Wednesday, he is scheduled to deliver a keynote speech at a high-level roundtable for the Peace Forest Initiative, a platform for global cooperation launched in 2019 jointly by the Korean government and the UNCCD.

This is Moon's second official overseas trip since leaving office in 2022. It was arranged at the invitation of the UNCCD and the Mongolian president.

COP17 in Mongolia: Finding solutions to land degradation www.euronews.com

Delegates of 179 members of the UN Convention to Combat Desertification engage with local communities and business partners to find solutions for land degradation which affects half of world's population and creates poverty and mass migration.
Geography says that 70% of land mass on our planet is suitable for human life. The rest is an extreme environment where people can hardly survive. But that proportion is rapidly changing. 40% of the soil humanity uses to sustain itself is already degraded and is becoming barren. Brought about by climate change, drought, misuse of agricultural land and other human activity, much of the habitable land is turning into a desert with natural, known deserts expanding every day.

This crisis was detected and its effects scientifically described already in the 20th century. The United Nations appealed to the member states saying that every community needs land to sustain life. Without land there is no food and it triggers poverty, migration and conflict. That is why the United Nations Convention to Combat Desertification (UNCCD) was approved in 1994 and came into force in 1996. It has 197 signatories. They meet regularly to find mechanisms to fight desertification and land degradation.

This year the United Nations entrusted Mongolia with organising the conference of parties, COP17. It opened in the capital of Ulaanbaatar on August 17 with participation of most UNCCD member states and over 400 different organisations and community representatives.

Why they need to do something urgently can be expressed in figures. Almost 3 and a half billion people on the planet are affected by land degradation. According to some estimates, it costs their states and local communities 900 million dollars every year to do something about it and save people from loss of income and food sources.

Droughts have increased by two thirds since the year 2000.

Water is becoming a scarce resource and the demand for it will surpass the sources by 40% by 2030.

85% of the affected people live in medium and low-income countries and much of the mass migration has to do with food and income being unavailable due to land degradation.

Our languages, cultures, ethnic backgrounds and religions may differ, but we share a common determination to safeguard the future in which we can all continue to live in harmony with Mother Earth.
 Nyam-Osoryn Uchral 
Prime Minister of Mongolia
The story of the host country, Mongolia where cost to produce a loaf of bread has tripled over just one past decade was repeated by all other participating regions. From the very opening, the leaders were eager to stress that the COP17 is not about some distant environmental worry, but about the problem that is already here and getting worse by the month.

“This summer we saw across different parts of the world, also in Europe, how drought disrupted river transport and strained energy production. It reduced agricultural yield and induced wildfire with losses of lives. Similar stories are there around different parts of the world that we never thought would be affected. The message is clear, droughts are no longer just an environmental issue, they are not just absence of rain or a geographic environmental issue. They are a systemic risk to food and water security, to international commerce, energy supply, livelihood and , simply to stability and prosperity,” said dr Yasmin Foudh, Executive Secretary of the UNCCD at the opening ceremony.

Mongolia has been chosen as the venue for the COP17 for three reasons. First, it wanted to be the host and applied 4 years ago. Second, it is among the countries that feel effects of land degradation. Over the last 8 decades the average temperature in Mongolia rose by 2 degrees Celsius and precipitation dropped significantly. Winds started carrying sand from the Gobi desert over the Mongolian flatlands all the way to South Korean and even Japan. Last but not least, it has been on the forefront of global efforts to combat the spread of deserts.

“Mongolia, our vast country, is among the most affected by the challenges facing the world today. On this vast territory, where there are only two people per every square kilometre, 77% of the country, or in another words, eight out of every ten steps of the land, are affected by desertification and is increasingly being covered by the encroaching sands,” said Mongolian Prime Minister, reminding that since his country joined the UN Convention on Combating Desertification, it has implemented many measures in its development plans.

Assuming the role of the COP17 president, Mongolia’s Foreign Minister Battsetseg Batmunkh pledged her country’s full commitment to combating the degradation of the land that the fabric of her nomadic nation is made of. Pledge supported by action taken so far.

“Today, Mongolia is contributing to global efforts through national initiatives aimed at protecting ecosystems, combating desertification, restoring degraded land, strengthening food security and increasing the resilience of our people and communities. The Billion Trees National Movement, the Food Revolution, White Gold and Unlock initiatives launched by the President and the Prime Minister of Mongolia, together with the recently adopted law on climate change, are tangible expressions of this national commitment. At the multilateral level, Mongolia initiated the United Nations General Assembly resolution proclaiming 2026 as the International Year of Rangelands and Pastoralists,” said Foreign Minister Batmunkh.

What are the solutions and what can COP17 achieve?

There is no one solution to the problem of desertification as each region has its own specific problems with drought, land degradation and their consequences. The sheer scale of the expense needed to combat the problem, estimated at almost 6,500 billion dollars a year sounds like unsustainable lost cause. But it is not so.

Experts have calculated and business people proved, that in many projects aimed at saving soil from turning into Mars-like surface, for every 1 dollar invested you can get 7 to 30 back. Because it is the investment into sustainable food production and green projects, all of which is profitable.

This is fortunate because it allows for the private money to flow into the desperately needed solutions. Since the establishment of UNCCD many countries have implemented measures and added them to their development programmes. Public-private cooperation have been established.

“Countries have already committed to the one billion hectare by 2030 and more than 70 countries had submitted already their drought management plans. So we are not starting from scratch. More than 100 countries would like to translate the land plans into actual projects, investable projects with the potential of 2 billion US dollars. More than 300 businesses are already engaging with us here,” says executive secretary Foudh.

There are many corporate parties involved in the conference as it seeks to utilize private funds and only the host country expects more than 1.5 billion dollars of funds to be directed at its programmes of re-forestation, green energy and sustainable agriculture.

But equally important impact of COP conferences is the interaction between all the stakeholders in the battle against losing soil. In this particular one, more than 500 representatives of indigenous communities, from Amazonia, through Africa to the Asian steppes, were able to speak and relate their problems and proposed solutions.

With 60 organisations exhibiting their solutions and over 400 cultural and scientific events, COP17 also promises to be the of the busiest and liveliest ones during the 12 days of gathering.

Organisers expect more than 30,000 people to visit the event before it closes on August 28.

Mayors Exchange Good Practices, Seek New Partnership Models at COP17 www.montsame.mn

The Mayors’ Forum is being held in Ulaanbaatar as part of the 17th session of the Conference of the Parties to the United Nations Convention to Combat Desertification (UNCCD COP17).

Opening the forum, Purevdagva Bayruuzana, Governor of the capital and Mayor of Ulaanbaatar, said that although Mongolia has preserved a nomadic heritage of living in harmony with the land, land degradation, drought and desertification have become major challenges, as they have in other countries.

“Desertification, water scarcity, climate change, pasture degradation and the resulting adverse impacts of dust storms are not confined by national borders. Therefore, partnerships among cities and international cooperation are essential. COP17 provides an opportunity to learn from good practices, share challenges and solutions facing the region, and address them together.

“Ulaanbaatar, as a major economic and financial center generating around 70 percent of Mongolia’s GDP, should play a leading role in promoting green economic cooperation through partnerships among cities and in reducing pasture degradation. Partnerships among cities and appropriate investment solutions will be crucial to implementing the goals put forward at COP17.

“We seek to learn from your good practices and jointly introduce new ideas and partnership models that can benefit all parties.

“Ulaanbaatar will take the lead in serving as a bridge for cooperation through city partnerships and an investment system based on the green economy. We will also put forward the ‘Ulaanbaatar Declaration,’ which will reflect the common positions and shared goals of cities, and the ‘Ulaanbaatar Initiative,’ which will link these goals with concrete actions and investment. Partnerships among cities and investment opportunities will be an important step toward international cooperation. I believe the new ideas and solutions emerging from this forum will mark the beginning of long-term cooperation.”

The forum brings together city leaders from around the world, representatives of international and research organizations, development partners, financial institutions, and the private sector for high-level policy discussions, scientific and technological exchanges, and the sharing of urban experiences. It aims to promote the international sharing of policies, good practices, technologies, innovations and nature-based solutions implemented at the city level; connect the voices and participation of local governments with the UNCCD process; and establish an institutional and financial foundation for sustained cooperation among cities.

Yasmin Fouad, Executive Secretary of the United Nations Convention to Combat Desertification, said that more than half of the world’s population is projected to live in cities and urban areas by 2050.

“The concentration of people, economic activity and infrastructure is making cities key centers for human development and environmental sustainability. When we talk about land, we cannot leave the people living on that land out of the equation. Urban areas should not be treated differently from rural areas. It is important to consider how financial resources can be delivered and how land and water can be managed properly. These issues must be addressed in an integrated manner.

“Therefore, we are discussing resilience to land degradation and climate change, and by the final day, we will make decisions for healthy and resilient land for all,” she emphasized.

Sandag-Ochir Tsend, Minister of Environment and Climate Change, noted that although desertification, drought and land degradation are often considered local issues, their consequences affect people’s lives through migration, air pollution and other impacts, making cities recipients of these risks. He stressed that mayors are among the most important actors in implementing the goals put forward globally at COP17.

He also emphasized the importance of cities in providing global leadership, saying that it is not enough simply to discuss green finance, investment and urban planning. Instead, successful solutions implemented in one city should be replicated in other cities.

The Minister added that Mongolia is ready to work with international and financial institutions, the private sector and civil society to address these challenges.

Dr. Ursula Sautter, a member of the Bonn City Council and Deputy Mayor of Bonn, Germany, spoke about the challenges facing her city.

“Since May, temperatures in Bonn have reached 35–40 degrees Celsius. The city’s buildings were not designed to cope with such extreme heat. The soil has become like a desert, making conditions difficult for trees, plants and birds. Water levels have fallen to levels never seen before in centuries. This is the first time we have experienced such difficulties, which other countries have faced before. In this regard, I am grateful to be participating in this forum,” she said.

She noted that money alone cannot solve all problems and said that, in addition to encouraging businesses operating in the city to contribute to biodiversity and environmental protection, Bonn is receiving financial assistance from local landowners to help address the challenges it faces.

Representatives of 33 countries, 24 cities, 51 international organizations and 23 domestic organizations are participating in the forum.