Views shared on Mongolia-the U.S.A relations and cooperation www.montsame.mn

Ulaanbaatar/MONTSAME/ On December 3, the Ministry of Foreign Affairs organized a regular consultative meeting of staffs of the Mongolian government institutions, who work in charge of relations affair with the U.S.A.

Parliament fails to form quorum as MPs boycott Speaker www.zgm.mn

Parliament was scheduled to appoint the next Minister of Food, Agriculture and Light Industry, and discuss the amendments to the Minerals Law at its plenary session yesterday; however, both discussions had to be postponed due to failure to form quorum as four Members of the Parliament (MPs) staged a sit-in and demanded Speaker Enkhbold Miyegombo to submit his resignation letter. Blaming the absentees for interfering with the continuity of Parliament operation, MP Enkh-Amgalan Luvsantseren requested the Parliament to issue a demand to MPs that were not present at the session.

IAAC discloses violations in SME Development Fund www.zgm.mn

On the occasion of the upcoming international Anti-Corruption Day, the Independent Authority Against Corruption (IAAC) held a discussion under the theme “Small and Medium-sized Enterprises (SME) Development Fund: Issue and Solution” yesterday. At the discussion, the IAAC disclosed some of the inspection results on SME Development Fund.

Another Mongolian sumo assault scandal www.news.mn

The Japan Sumo Association said on Wednesday that rank-and-file wrestler Takanoiwa assaulted an attendant of his stable during the ongoing regional tour. Just two months after the sport’s governing body issued a “declaration to eradicate violence,” Takanoiwa, 28, physically attacked a lower-ranked apprentice wrestler, the association said.

Coal briquettes – a golden bullet for UB’s pollution problem? www.news.mn

The Mongolian government has taken the decision to ban the consumption of raw coal in Ulaanbaatar starting from 15 May 2019 in an attempt to reduce air pollution in the capital. About 202 thousand households in the ger districts of Ulaanbaatar burn 1.1 million tons of raw coal each winter, which produce around 80 percent of the smog which envelopes the city. The plan is to conduct an ecological ‘revolution’, turning from raw coal and replacing it with 600 thousand tonnes of briquettes, thereby drastically decreasing air pollution. The briquettes will be made from coal powder by Erdenes Tavan Tolgoi and will be sold at the same price as the raw coal currently used. Is this the golden bullet to the pollution problem? Many people living in the ger districts think not, stating that the briquettes do not generate as much heat and are currently more expensive than the raw coal. At present, 25kg of briquettes is being sold for MNT 3750; pricier than raw coal by MNT 200-700.

Trump administration to lift barriers to build new coal plants www.mining.com

The Trump administration is rolling back Obama-era rules on climate change regulation limiting carbon dioxide emissions from coal power plants in the United States, making it easier to build new ones.

The Environmental Protection Agency (EPA) plan, announced Thursday, would no longer mandate that plants meet the strict emissions goals of achieving emissions equal to or less than what plants would have achieved with carbon capture and storage (CCS) technology.

Under the proposed revisions to the New Source Performance Standards (NSPS), EPA would let new coal plants emit up to 1,900 pounds (862 kg) of carbon dioxide per megawatt-hour of electricity. The rule would replace the Obama-era standard allowing only 1,400 pounds of carbon per megawatt-hour.

Proposal eases limits of carbon dioxide emissions from coal power plants, making it easier to build new ones.
EPA Assistant Administrator for the Office of Air and Radiation Bill Wehrum called the old rule “wishful thinking.”

“Today’s actions reflect our approach of defining new, clean coal standards by data and the latest technological information, not wishful thinking,” he said in a statement.

“U.S. coal-fired power will be a part of our energy future and our revised standards will ensure that the emissions profiles of new plants continue to improve.”

The announcement follows a recent U.S. Energy Information Administration report showing that domestic coal use will sink to a 39-year low this year, largely due to a drop in its use for generating electricity.

Only one, relatively small, new coal-fired generator is expected to come online by the end of 2019, the EIA said.

According to the American Coalition for Clean Coal Electricity, power plant operators have either shut down or announced plans to close at least 630 coal plants in 43 states in the last eight years. That’s about 40% of the U.S. coal fleet, the trade group says.

EPA’s move comes as the world gathers in Poland for what is being dubbed the most important meeting on climate change since the 2015 Paris Agreement, which President Donald Trump has criticized repeatedly.

It also follows the US push to edit a G20 communique by adding a paragraph emphasizing that the US "reiterates its decision to withdraw from the Paris Agreement, and affirms its strong commitment to economic growth and energy access and security, utilizing all energy sources and technologies, while protecting the environment."

"Today's proposal is nothing more than another thoughtless attempt by the Trump Administration to prop up their backwards and false narrative about reviving coal at the expense of science, public safety, and reality," Mary Anne Hitt, senior director of Sierra Club's Beyond Coal campaign, said in a statement.

The proposed modifications are Trump’s latest attempt to fulfill campaign promises to revive the coal industry and restore mining jobs. But experts believe they are unlikely to dramatically alter the US power mix or give a big boost to domestic coal demand, which has flagged amid competition from cheap natural gas and renewables.

Mongolia's PM has kept his job, but the country is reeling from fraud and political turmoil www.scmp.com

Mongolian Prime Minister Ukhnaagiin Khurelsukh last week survived a vote of no confidence – but now he must juggle party and opposition interests to retain power and fulfil new promises to fight corruption, and his success or failure in doing so will have lasting implications for the country.

The unsuccessful attempt to oust him follows weeks of unrest in the capital, Ulan Bator, as Mongolians protest recent revelations of documented government embezzlement.

Friday’s vote of no confidence was initiated by the Prime Minister’s own party, the Mongolian People’s Party (MPP). Despite the MPP’s 85 per cent majority in Mongolia’s 76-member parliament, the Ikh Hural, he survived the vote with only 40 parliamentarians voting in his favour and 33 against. This factional public infighting is unprecedented for the MPP, a party long seen as a disciplined and united force compared with the rival Democratic Party (DP).

This vote comes on the heels of what has become known locally as the “SME scandal”. In early November, Mongolian news agency Ikon reported that 14 MPs, two cabinet members, and other high-ranking officials had channelled more than US$1 million in government funds to their family and friends. The funds, essentially business loans offered at a severely reduced interest rate, were intended for the development of small- and medium-sized enterprises (SMEs).

Mongolia’s SME fund is crucial to its development. The country is overly dependent on its mineral resources, trading more than 80 per cent of its total national exports to neighbouring China. This overreliance has caused Mongolia’s economy to decline precipitously when world commodity prices dip, or when China decreases its demand.

In 2017, an economic crash and governmental budget mismanagement forced Mongolia to receive a US$5.5 billion bailout from a group of international backers organised by the International Monetary Fund, which included the People’s Bank of China. The bailout programme included a requirement that Mongolia diversify its economy, and growing SMEs is key to growing non-resource revenue.

The Khurelsukh vote followed 10 hours of intense debate, during which members of parliament exchanged barbs and accusations of corruption. The 27 MPP members who revolted against their party framed the vote as an accountability issue, demanding that the Prime Minister step down for failing to provide repercussions for implicated politicians.

In a fierce defence, Khurelsukh declared the vote a ploy by MANAN – the Mongolian word for “fog”, which is also an acronym combining the Mongolian abbreviations for the MPP and the DP. MANAN refers to what Khurelsukh and others have called Mongolia’s “30 families”, the elite group he claims controls both parties.

He alleged that this group, led by current Speaker and former prime minister Miyegombyn Enkhbold, is attempting to topple the government because it is interfering with the elite’s business interests. Echoing the populist rhetoric that was effectively used by current President Khaltmaagiin Battulga’s 2017 election campaign, the Prime Minister depicted himself as a champion of the people intent on fighting elitism and grand corruption in Mongolia’s government.

Mongolians generally perceive their government as having high levels of corruption, and ranked political parties as the country’s second most corrupt institution on a recent Asia Foundation survey. The SME scandal has given the public a focal point for their mistrust, and on November 14, protesters braved frigid temperatures to gather in front of parliament to demand accountability for the missing funds.

The Mongolian National Chamber of Commerce and Industry has called on its 3,500 member companies to boycott tax payments until the scandal has been resolved, and is demanding a constitutional amendment to increase public oversight of government finances.

To date, the head of the fund, the state auditor, and the minister overseeing the fund have been dismissed, while others are under investigation. In his comments on Friday, Khurelsukh vowed to audit Mongolia’s 20 other state funds in an effort to root out corruption.

Mongolia’s leading political commentator, Jargalsaikhan Dambadarjaa, told the South China Morning Post that the turmoil of recent weeks will ultimately lead to “cleaning the public government of its bad features” and bolster democracy. He predicts this will be reflected in the 2020 parliamentary elections when new, perhaps less experienced, members are elected for their outsider status.

Three members of the opposition, DP, broke ranks to vote in favour of Khurelsukh. Parliamentarian Jalbasürengiin Batzandan has been stripped of his party membership, and in a Monday press conference accused DP party boss Sodnomzunduin Erdene of being a “puppet of MANAN”, and vowed to fight to reform his former party.

The two others have been barred from running on the party’s ticket in the 2020 election. One of them, Lu Bold, has announced his resignation from DP, leaving it with no official caucus representation in parliament.

While Prime Minister Khurelsukh retained power with promises to address grand corruption, the politicking necessary to save himself in the vote of no confidence may tie his hands. Of the 14 parliamentarians implicated in the SME scandal, eight voted to retain Khurelsukh as Prime Minister.

“The PM has made some difficult bargains to survive the no-confidence vote, both within his party and the opposition,” warns Mogi Badral Bontoi, the chief executive of market intelligence newswire Cover Mongolia. “How much the taxpayers will pay for those promises this time is anyone’s guess.”

Mongolia is no stranger to political turmoil – fewer than half of its prime ministers have served terms longer than two years. As seen in its protracted negotiations with mining giant Rio Tinto, Mongolia’s political instability has long compromised its own development and its relations with investors.

“Short-term political instability should obviously be making our investors and trading partners nervous, but this should not affect the government position and outstanding relations with our largest trading partner, [China],” said Cover Mongolia.

The populist rhetoric of MANAN is highly persuasive in a country with persistent poverty and inequality despite its wealth of resources. Mongolians have seen their politicians repeatedly fail to deliver on promises, and a new poll by the Independent Research Institute of Mongolia shows that 70 per cent of citizens are highly dissatisfied with the current political situation.

Are Khurelsukh’s promises to combat elite corruption merely rhetoric used for his political survival? Or will he truly take on the existing power structure and promote transparency and oversight? It remains to be seen whether he has the capacity to fight corruption fairly and justly within the rule of law, rather than wield rhetoric and selective enforcement to punish his political opponents.

Mongolia to increase access to mortgages www.xinhuanet.com

ULAN BATOR, Dec. 5 (Xinhua) -- The Mongolian government has decided to increase the value of mortgages it issues by 200 billion Mongolian tugriks (76 million U.S. dollars) to 500 billion Mongolian tugriks, said Minister of Construction and Urban Development Khavdislam Badyelkhan on Wednesday.

Mongolia prime minister to visit Japan to discuss North Korea, report says www.upi.com

Dec. 5 (UPI) -- The prime minister of Mongolia is visiting Japan next week to discuss the issue of Japanese abductees in North Korea, according to a Japanese press report.

Steam boiler’s smog-filtering technology being tested www.montsame.mn

Ulaanbaatar /MONTSAME/ A parliamentary working group on reducing air pollution yesterday worked at the 102nd secondary school of Bayanzurkh district.The school receives its heat from a steam boiler and it locates in high-smog area. Therefore, an electric device that purifies smog produced by the steam boiler was installed and started being tested from last August. The device was invented by U.S.-China joint ‘Demistra’ LLC and the work to test the device is being carried out by Mongolia-Korean Monkutroamin LLC.