Leading global coal and gas supplier Australia has pledged to achieve net zero carbon emissions by 2050.

Prime Minister Scott Morrison however said the plan would not include ending Australia's fossil fuel sectors.

The nation will also not set ambitious targets for 2030 - an objective of next month's COP26 global climate summit.

His plan has drawn criticism, with Murdoch University fire ecology expert Joe Fontaine saying it had "all the strength of a wet paper bag".

Australia has long dragged its heels on climate action. It has some of the highest emissions per head of population and is a massive exporter of fossil fuels.

Strategic allies the US and UK have both pledged to cut emissions faster. The UK has pledged that all its electricity will come from renewable sources by 2035, while the US has announced plans to halve its emissions by 2030 compared to 2005 levels.

"We won't be lectured by others who do not understand Australia. The Australian Way is all about how you do it, and not if you do it. It's about getting it done," Mr Morrison wrote in a newspaper column on Tuesday.

To halt the worst effects of climate change, nations have pledged to limit rising temperatures to 1.5C by 2050.

This requires cutting emissions by 45% by 2030 and reaching net zero by 2050, scientists say. Over 100 nations have committed to carbon neutrality.

Net zero means not adding to the amount of greenhouse gases in the atmosphere. It is achieved by a combination of cutting emissions as much as possible - mainly by reducing gases like carbon dioxide (CO2), which are released in the use of fossil fuels - and so-called offsetting measures, such as planting trees and carbon-capture technology.

Mr Morrison announced an investment of more than A$20bn (£11bn; $15bn) in "low-emissions technologies" over the next 20 years - such as efforts to capture carbon in soil, lower solar energy costs, and developing greener industries.

But Australia will also use more gas, at least in the short term. Most controversially, there is no plan to limit fossil fuels.

"We want our heavy industries, like mining, to stay open, remain competitive and adapt, so they remain viable for as long as global demand allows," Mr Morrison wrote.

Australia's 2030 commitment will remain a 26% cut on 2005 emissions. It is currently on track for a 30-35% reduction, the government said.

While the 2050 pledge has been widely welcomed, the government has been ferociously criticised for not offering more details.

Australia's Climate Council think tank said it was "a joke without strong emissions cuts this decade".

Many said the government has been too slow on climate action, despite seeing first-hand impacts such as bushfires, floods and drought.

"The word plan doesn't constitute a plan no matter how many times you say it," said Opposition Leader Anthony Albanese.

Scott Morrison's announcement is worth noting not because it offers anything different to other countries, but because of how late to the party Australia is!

This announcement took months of political wrangling and was left down to the wire with days before the COP26 summit in Glasgow.

That the government had to make political concessions to its junior coalition partner - the National Party - shows you how complicated and politically divisive climate action is in Australia.

The Nationals represent electorates in regional areas where most high-emission industries like coal mining are based. After days of toing and froing, they backed the 'process'.

The prime minister assured Australians the target will not mean paying more for their energy bills. "Technology not taxes," he said.

He addressed regional Australians directly and said the plan won't involve shutting down coal and gas production or exports. He talked about billions of dollars invested in low-emission technologies. The government's plan would "strike a balance", Mr Morrison said.

But he failed to explain how this balance will be struck. How the government will square keeping its coal industry, for example, and reaching net zero by 2050 - and what role technology will play in all of that. Especially when Canberra won't budge on its much-criticised 2030 targets.

While this is a big moment for Australia, the details are still murky and potentially problematic on how net zero will be achieved.

MANILA, PHILIPPINES (27 October 2021) — The Asian Development Bank (ADB) has approved the release of $32 million in loan and grant funding in ADB’s second tourism project to enhance and diversify sustainable tourism development in Mongolia.

The project will support the development of tourism in three aimags (provinces) of western Mongolia, focused on benefits for communities, conservation of wilderness and heritage values, and post-coronavirus disease (COVID-19) recovery and resilience. About 16,296 local residents are expected to boost their tourism-related skills and income.

“Mongolia has a small but emerging tourism sector, and developing Mongolia’s tourism sector is a high national priority to diversify the economy and create jobs,” said ADB Principal Environment Specialist Mark Bezuijen. “With this project, we will build the capacity of residents and a small but growing private sector for community-based tourism, create jobs through the establishment of tourist streets and visitor complexes, and strengthen the management of five globally important protected areas and heritage sites.”

Mongolia has a large network of protected areas, stunning wilderness, and a unique cultural heritage. Ecotourism based on nature and heritage can bring much-needed jobs and financing for communities and underresourced parks and reserves, but it also requires careful planning to ensure that visitation does not damage the values that draw tourists. The global spread of COVID-19 in 2020 created significant new challenges for tourism development in Mongolia due to national border closures and the decline—to almost zero—of international arrivals, which resulted in more than $421 million estimated losses in tourism revenue. In western Mongolia, few residents are able to derive income from tourism, while there are also few public facilities to catalyze tourism.

The project will establish a multisector approach to strengthen local tourism planning, sustainable benefits for communities, enabling infrastructure and support for protected areas. Two tourist streets will be constructed in the city centers of Khovd and Uvs aimags, along with nine women-led markets near protected areas to showcase and sell local products. A pilot tourism development program for communities and micro, small and medium-sized enterprises is part of the project and will include vocational training, a community revolving fund, youth entrepreneur incubator, and the establishment of community-based organizations.

The project will also construct the first two tourism centers in western Mongolia—the rock art and nomadic culture center in Khovd aimag and Uvs tourism complex in Uvs aimag. The Khovd center will include Mongolia’s first digital museum dedicated to rock art cultural heritage and will include an online platform to promote local tourism goods and services.

Two million dollars of the project funding is being sourced from the Japan Fund for Poverty Reduction (JFPR). The JPFR is funded by the Government of Japan, which has supported projects in Mongolia in poverty alleviation, improving livelihoods, and safeguarding the environment over the past 20 years. The $2 million JFPR funding will provide critical support to establish small, community-managed facilities at protected areas and cultural heritage sites—including low-cost, gender-sensitive toilet systems and upgrading of small car parks—to improve visitors’ experience, protect nature and heritage, and create local jobs.

The project will begin in 2022 and is expected to be completed by 2027.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Members of the working group in charge of implementing the parliamentary resolution No.92 dated November 21, 2019, titled ‘Ensuring the interests of Mongolia in the exploitation of the Oyu Tolgoi gold-copper mine’ led by Minister of Justice and Home Affairs Kh.Nyambaatar yesterday held a meeting with representatives of Rio Tinto.

During the meeting, the sides exchanged views on accelerating the negotiations on Oyu Tolgoi project and developing a working plan to resolve certain issues surrounding the project in the near future. The working group members stressed the need to pay special attention to ensuring the full implementation of the parliamentary resolution No.92.

The meeting was attended by Minister of Mining and Heavy Industry G.Yondon, Minister of Energy N.Tavinbekh, Deputy Minister of Justice and Home Affairs B.Solongoo, CEO of Erdenes Oyu Tolgoi LLC N.Tserenbat. Whereas, Copper Chief Executive of Rio Tinto B.Bold, Head of Rio Tinto Ventures Andrew Latham, Country Director in charge of Rio Tinto’s operation in Mongolia Kh.Amarjargal and advisor B.Usukhbayar represented the company.

A press conference was held today to present the activities being carried out to mark the 100th anniversary of the establishment of diplomatic relations between Mongolia and the Russian Federation.

Deputy Minister of Foreign Affairs B.Munkhjin, Director of the Neighboring Countries Department of the Ministry of Foreign Affairs T.Battsetseg and Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Mongolia I.K.Azizov participated in the press conference.

The sides have approved a joint plan to celebrate the 100th anniversary of the two countries' diplomatic relations and are implementing the activities set out in the joint plan throughout this year.

During their telephone conversation in February, Foreign Ministers of Mongolia and Russia B.Battsetseg and L.Lavrov announced that the celebration of the diplomatic anniversary had begun.

Deputy Foreign Minister B.Munkhjin said, "A joint plan that covers 92 activities in the fields of politics, defense, trade, economy, culture, science and the humanities has been approved. The anniversary will be celebrated on November 5. The following major events will be held during the remaining period of this year:

On November 4, the Russian State Academic Dance Ensemble ‘Alan’ will perform at the Mongolian Central Palace of Culture.

On November 5, the unveiling ceremony of the postage stamp dedicated to the 100th anniversary will be held.

On November 12, the Embassy of Mongolia in Russia will host a reception in Moscow.

Moreover, the two sides are planning to hold high-level reciprocal visits for the rest of the year."

Ambassador I.K.Azizov said, "Plans are underway to organize a number of political and economic events within the framework of the anniversary. For instance, members of the State Council of Russia are planning to pay a visit to Mongolia on November 4-7. Representatives of the Ministry of Education will also visit Mongolia to discuss the establishment of a Mongolia-Russia joint school.

Director of the Neighboring Countries Department of the Ministry of Foreign Affairs T.Battsetseg emphasized that the two countries have set a goal to take trade and economic cooperation to a new level in the next century by jointly implementing major development projects such as the Erdenet plant and the Ulaanbaatar railway."

Today, October 27, marks the 60th anniversary of Mongolia's accession to the United Nations. On the occasion of the anniversary, Minister for Foreign Affairs B. Battsetseg delivered a congratulatory message.

The Minister stated, “I wish to sincerely congratulate my fellow Mongolians on the 60th anniversary of Mongolia’s full-fledged membership to the United Nations.

The United Nations was founded on October 25, 1945, when the thick fog of World War II was not yet fully lifted by nations who had suffered from the war that caused an immeasurable loss in the history of humanity and took millions of precious lives to avoid another such a calamitous disaster and build lasting peace.

Although nations of the world today greatly vary in their history, culture, customs, political-economic systems, and development levels, the United Nations represents humanity as one whole family. This historic 60th anniversary of Mongolia’s entrance as the 101st member of this large family, proclaiming its sovereignty and independence of its state to the world, is an auspicious day for all Mongolians.

The United Nations was founded on the principles of equal rights and participation of all nations, irrespective of whether they are large or small and developed or developing. Therefore, as a landlocked and developing nation with a small population, Mongolia gained an opportunity to express its own voice and positions for the well-being of humanity and peace on a global stage by becoming its member.

For the last 60 years, Mongolia fully seized this opportunity, strictly adhered to the Goals and Principles of the UN Charter, and contributed to strengthening international peace and security, promoting social and economic development, and securing human rights, which are the three pillars of the United Nations activities. Today, Mongolia has established diplomatic relations with 193 countries of the world and became the member of more than 80 international and intergovernmental organizations and acceded to more than 290 international treaties.

Taking this opportunity, I would like to express my sincere thanks to the UN and its agencies for providing invaluable assistance to support Mongolia’s economic and social development.

Within the framework of ‘the Vision 2050: the long-term development policy,’ which was designed in coordination with the Sustainable Development 2030 Agenda, the Government of Mongolia plans to offer no less than 90% of all government services through the ‘E-Mongolia’ central platform in 2021-2024 and will closely collaborate with the United Nations to digitize all services and reach the goal of becoming a ‘Digital Nation’.”

On October 25, representatives of coal mining companies and entities held a discussion under the theme, ‘Standard Rate and the Mining Royalties’, on taxes and corresponding fees for coal at the Mongolian National Chamber of Commerce and Industry.

Regarding the event, CEO of Mongolian Coal Association J.Zoljargal said, “The fee for exploitation of mineral resources (royalty) is required to be paid by all mining companies that are running exploitation and putting the resources on the market for sales, and they have indeed made the corresponding payments so far. However, the Government began to implement standard rates for the royalties from this July. As a result, expenditure have increased, putting the companies in risk of stopping operations.

In 2016, the Government approved the ‘Assessment for export products sales, and sources to establish internationally standard rates’. In its framework, the Ministry of Finance announces the monthly rate for the coal market. This time, however, the Ministry announced an unrealistic rate which has put on unfair tax burdens on entities that mine coal.”

Noting how Mongolian coal companies have been unable to make corresponding profits due to infrastructure and border restrictions despite the increased demand for coal in China, he underlined how the increase in fees could lead to a deficit for entities.

Deputy Director of ‘Khishig Arvin’ LLC B.Nasanbileg said, “The sudden increase in taxes and fees are creating uncertainty in the mining sector. For example, while the fee for 1 ton of coking coal was over USD 100, now we will have to pay a fee that is two times as much, resulting in an increase in expenses once more.

In our current situation where the country earns most of its foreign currency reserves through minerals, and especially coal, it is necessary to continue to keep the competitiveness on the global market by supporting companies and employers.”

CEO of ‘Erdenes Tavantolgoi’ JSC B.Gankhuyag said, “The royalty is becoming another burden on top of the current pandemic situation. For a single ton of coking coal priced at USD 83, a fee of over USD 260 was imposed in the third quarter of this year. There is no point in running a business if we have to pay a royalty of USD 15 for our coal that was sold at USD 13. Our company has reached a point where we had to stop mining coal from October 20. We contributed a total of MNT 2.4 trillion to the state budget so far. Out of this, MNT 2.2 trillion was contributed to the state budget in the last four years. 25 percent of our company’s sales income of MNT 8 trillion was also used as payment for various forms of tax. Furthermore, we had a significant amount of expense in the framework of works carried out for corporate social responsibility during the pandemic. Thus, I believe it would not be right to impose the fee on top of all this. Despite how the royalty is supposed to be 10 percent, we are currently paying a fee that amounts to 34-37 percent.”

According to international standards, royalty is calculated by taking income sales and the amount stated on the agreement into consideration - all of which are conducted transparently. However, the process has become reversed by calculating profits beforehand, highlighted the participants. Thus, they expressed their demand for appropriate decisions to be made by the working group in charge of calculating royalty for mining products. The Mongolian National Chamber of Commerce and Industry expressed support for the demand being put forth by coal mining companies and acknowledged the further risks being created as a result.

Today, October 27, the Ministry of Health reported 1,669 COVID-19 infections and 12 deaths in the 24 hours. In detail, 917 cases were reported in Ulaanbaatar city, with 752 cases in 21 provinces.

As of today, the cumulative infection tally in Mongolia increased to 353,504, with the death toll to 1,616. Currently, 17,688 people are receiving hospital treatment for COVID-19 whilst 52,698 people with mild symptoms are being treated at home.

As of today, October 27, the coverage of 1st dose is 69.3 percent or (2,254,866) and 2nd dose – 65.7 percent (2,138,490) of the total population. 393,631 people have received 3rd dose or a booster shot of COVID-19 vaccines in Ulaanbaatar city and 21 provinces.

The last year has seen a rise in resource nationalism — or the risk of thereof —in an extensive and fast-rising number of countries, including top mining countries, market analyst Fitch Solutions finds in its latest industry report.

While resource nationalism had been relatively contained geographically speaking in the past to Sub Saharan Africa, and localised countries such as Indonesia, it is spreading across the world and is now noticeable in SSA (the DRC, Mali, Zimbabwe, South Africa, Guinea), Latin America (Mexico, Peru, Chile), North America (the US), Europe (Russia) and Asia (Indonesia, Mongolia), Fitch reports.

The analyst has long argued that resource nationalism in the mining sector was going to remain a key feature of the sector. In the wake of covid-19, Fitch raised the probability of a rise in resource nationalism on a global basis.

Over the past 12 months, resource nationalism in top mining players has flared up around the world, mostly in emerging markets. Fitch expects this trend to continue over the coming few years, as underlying drivers of resource nationalism and government intervention will remain in play.

Resource nationalism can take several forms, including renegotiation of existing mining contracts to get better terms (currently witnessed in the DRC and Mongolia), increase in taxes or royalties on the mining sector (Chile, Peru, Russia), asset nationalization (forced equity transfers) or the threat of (Zambia, Mexico, Zimbabwe), in- country beneficiation (Indonesia), or export restrictions.

Drivers of resource nationalism remain in play in 2022

A number of factors will incentivise governments to consider intervening in the mining sector and tightening mining regulations, Fitch says, noting that several of those drivers have been clearly accentuated in recent quarters, mostly by the covid-19 pandemic.

The rally in mineral and metal prices in 2020-2021 has revived the interest in the mining and metals sector and boosted potential tax and royalty returns for governments. Fitch forecasts prices to remain elevated in 2022.

Improved prospects for the Green Energy Transition minerals such as copper, nickel, lithium, cobalt, among others, amidst the ongoing acceleration in decarbonisation efforts at multiple levels.

This is leading to a sharp rise in investment in new projects towards these materials, prompting governments to make sure their countries benefit from these trends, Fitch says.

Increased economic/fiscal hardships and rising social inequality in the wake of covid-19 are providing strong incentives for a rise in government intervention in the mining sector.

Another key driver of resource nationalism is political risk linked to elections, Fitch notes.

The recent election of left/ social-leaning governments, in the US and Peru for example is a factor behind potential changes to mining regulations in these countries. Sudden changes in governments, which have happened in some countries recently, also usually increase risks of a change in regulation. Mali for example, saw two coups in 2020-2021.

Finally, contested campaigns also increase nationalism rhetoric ahead of the elections in order to gain support, Fitch forecasts.

This happened in Zambia in 2020-2021 for example, when former President Lundu used a nationalistic rhetoric ahead of the August 2021 elections.

While elections happen on a regular basis, their convergence with economic hardships and social tensions over rising inequalities pose an increased risk of resource nationalism, the analyst asserts.

(Read the full report here)

Mongolia has many advantages which typically create initial interest from foreign investors. However, this initial interest will not lead to significant investment unless there is comprehensive change in the investment environment in Mongolia – which goes beyond one, however crucial – investment law.

The European Mongolian Chamber of Commerce and Industry (EuroChamber) is committed to contributing to stable and positive business and investment climate in Mongolia through its work as a united voice of European business community in policy dialogue with and advocacy towards the Government, Parliament and other public service institutions of Mongolia.

Earlier this autumn in September, the Prime Minister of Mongolia made a speech at the auspicious public-private investors consultative event to ensure that busines will pick-up again in the hopefully dubbed ‘post-pandemic’ period. In his speech the Prime Minister emphasized that Foreign Direct Investment will play a key role in reviving the economy of the country and vowed that all investors will have a more flexible legal framework to cooperate with and that foreign companies can continue business without restraints that were otherwise seen. In addition, he established special Investor protection council to oversee the process.

In support of these Parliament’s and Government’s efforts, EuroChamber has created a fundamental FDI Position paper and delivered it to the President, Parliament Speaker and Prime Minister, as well as to our partner - National Development Agency recently.

EuroChamber represents over 150 European, international and Mongolian member companies. Our ‘Foreign Investment Climate’ position paper is a result of several months of research work and draws on collective opinion and experiences of our members, and expertise of EuroChamber Board of Directors.

Our key findings and recommendation focus on:

1. Need for long term stability and predictability of the FDI investment climate

2. Need of change of attitude into “competing for FDI as a country”

3. Improving bureaucracy bottlenecks, esp. within the judiciary system, and rule of law

4. Improving public perception of FDI as positive contributor to socio-economic progress

5. Focus on connectivity and logistics infrastructure as a basis for sustainable economic growth

6. Fostering private sector's role as the engine of economic growth, with Government acting as regulator and a catalyst of prosperity and increased business and investment confidence.

This position paper covers in total 14 detailed themes to address in order to achieve a robust business and investment legal framework.

The timing of this coincides with several negative phenomena that have left the public in awe and fury, specifically the fuel shortage and recently highlighted ‘Tianjin Container Crisis’ (see previous press release from July 9th, 2021; https://www.eurochamber.mn/a/9(link is external)), which still remains an issue at large. Mongolia is a very open economy, dependent on foreign trade and connectivity, and thus can benefit from foreign direct investment, while decreasing economic and transport dependence on the two neighboring countries.

EuroChamber and our members have been working since our inception in 2019 on topics like Logistics and connectivity with Europe, Sustainable development and renewable energy, Tourism and hospitality, in support of economic diversification and better trade and investment results.

Now is an opportune time to implement comprehensive changes given the unity at Mongolia’s three levels of state political institutions and the strong interest in mining investment globally. While resource nationalism has been rising in other resource dependent economies (*), Mongolia’s openness and improvements to the investment environment are likely to get noticed positively by the international business community.

(* Verisk Maplecroft, a leading resource sector focused risk consultancy, stated that in 2020-21 resource nationalism rose in a large number (34) of countries included in the resource nationalism index).

About EuroChamber Mongolia

Leading European banks and companies active in Mongolia founded the EuroChamber in 2019 with the aim to foster Europe-Mongolian business relations, investment and trade. The founding member companies are: EBRD, ING Bank, MSM Group, Termigas Impianti Tecnologici and ARI Net Associates. The Chamber enjoys strong cooperation with the EU Delegation and national European diplomatic representations to Mongolia.

EuroChamber concluded a close Cooperation agreement with DMUV, FMCCI and BBG, thus now representing a united voice of European business in Mongolia and over 150 members. The mission of EuroChamber is to contribute to the improvement of business and investment climate in Mongolia through targeted advocacy and policy dialogue with the Government and other stakeholders.

For further information about the EuroChamber, including media requests please call 9009 1557, Mr. Erdenebileg L., Communications officer of the Chamber (email: info@eurochamber.mn(link sends e-mail)).