The following laws will be implemented from January 1, 2025 in Mongolia.

The current minimum wage in Mongolia is MNT 660,000 per month in 2024. It will be MNT 792,000 from January 1, 2025. Minimum wage of Mongolia has been increasing every year since 1995. At this time, minimum wage was MNT 9600.

According to the Amendments to Article 12 of the Law on Herders, Mongolia will improve access to financial services for herders. As a result of this, cooperation and connection between banks, factories and herders will be improved. Working and living conditions of herders in their communities will improve furthermore. It will also increase the range of loan and insurance products for herders.

Amendments to the Law on the Elderly will be implemented starting next year. Average aging of Mongolia is increasing year after year. Thus, the number of elderly people in the working-age population is expected to increase from one in 10 in 2010 to one in 4 by 2040. Therefore, it has been decided to amend the law to encourage the continued employment of the elderly in order to provide a stable source of income for the elderly.

At last, Amendments to the law on personal income tax has been made. The amount of the discount shall not exceed 1 percent of the taxable income for the tax year.

The Ministry of Labor and Social Protection, the Asian Productivity Organization, and the Mongolian Productivity Organization jointly organized the Productivity Revolution conference today, December 17, 2024, with the goal of defining a national productivity strategy and accelerating the productivity movement at a national level.

As of today, Mongolia's average labor productivity is 3.6 times lower than the global average and 5.4 times lower compared to South Korea.

Labor productivity and wages are directly correlated. In Mongolia, the mining and information technology sectors demonstrate the highest productivity and provide the highest wages.

Therefore, the government plans to launch a productivity revolution by formulating and implementing policies, regulations, and measures aimed at increasing productivity across all levels of the public and private sectors.

Efforts will focus on supporting intellectual labor, increasing remote and digital work opportunities, and progressively improving Mongolian workers' labor productivity and wages on an annual basis.

Additionally, steps will be taken to ensure occupational safety at all levels, establish decent workplaces, and build a productivity ecosystem.

Translated by ChatGPT

A climate fund managed by Swiss impact asset manager responsAbility strengthens its partnership with Khan Bank, Mongolia’s largest financial institution, through a renewed financing facility of USD 15 million. The funding aims to support energy efficiency and renewable energy projects and reduce CO₂ emissions in a country that is one of the world’s most affected by climate change.

Mongolia ranks among the most climate-vulnerable countries in the world, facing extreme climatic challenges. Over the past 70 years, the average temperature has increased by 2.07°C, resulting in more frequent and intense extreme weather events such as long winter periods (Dzud), droughts, floods, desertification, and sandstorms. Particularly affected is the capital, Ulaanbaatar, where nearly all power and heat are derived from coal-fired power plants. This dependency leads to extremely high emission levels - especially in winter, when pollution levels exceed WHO-recommended limits by up to 27 times - making Ulaanbaatar one of the world’s most polluted cities.

Projects financed by Khan Bank and climate impact

Under this partnership several energy efficiency projects have already been financed, contributing to both CO₂ reduction and improved living conditions in Mongolia. These include:

USD 14.9 million for energy-efficient industrial equipment: Supporting Mongolia’s food and dairy industries by introducing modern equipment, which strengthens livelihoods in the country’s nomadic communities reliant on livestock and dairy production.

USD 4.6 million for energy-efficient greenhouses: Introducing innovative greenhouse technologies enable year-round vegetable production under extreme weather conditions, bolstering food security and reducing reliance on imports.

USD 2.7 million for energy-efficient building measures: Projects such as the modernization of the historic Ulaanbaatar Hotel enhance energy efficiency, reduce emissions, and improve the quality of urban life.

As of Q2 2024, these projects have achieved remarkable results, saving 260,152 MWh of energy - equivalent to the annual consumption of 40,000 average Mongolian households1 - and reducing CO₂ emissions by 0.25 million tons, comparable to the annual emissions of approximately 54,000 cars2.

Khan Bank: a dedicated and innovative partner in green finance

Since partnering with responsAbility in 2021, Khan Bank emerged as a leader in green finance in Mongolia, leveraging its nationwide presence and innovative approaches to drive sustainability. For its contributions, Khan Bank received an Honorable Mention at the Global Climate Partnership Award in 2024. Special recognition was given to its sustainable loans for nomadic herders who practice certified environmentally friendly techniques. These projects model the integration of climate mitigation and adaptation measures and play a key role in counteracting land degradation from overgrazing in Mongolia.

David Diaz Formidoni, Head of Financial Institutions Investments, Climate Finance at responsAbility, said: “Our continued collaboration with Khan Bank reinforces our shared vision of a more sustainable and resilient Mongolian economy. The innovative projects enabled by this partnership make a valuable contribution to CO₂ reduction and to improving living standards in one of the world’s most climate-vulnerable countries.”

Erdenedelger Bavlai, First Deputy CEO of Khan Bank, said: “Green finance lies at the heart of our corporate strategy. Partnering with responsAbility allows us to implement innovative solutions to combat climate change and reduce CO₂ while supporting our local communities. Together, we are dedicated to creating a more sustainable future for Mongolia.”

About responsAbility Investments AG

responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes. These themes directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.

Since its inception in 2003, responsAbility has deployed over USD 15.7 billion in impact investments. With over 270 employees collaborating across 8 offices, as of 30 September 2024 the company manages USD 5.1 billion in assets across approximately 300 portfolio companies in around 70 countries. Since 2022, responsAbility has been part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.

About Khan Bank

Khan Bank serves over 82% of its population, offering comprehensive banking services through its 547 branches and digital platforms. Over the past decade, the Bank has prioritized sustainable development, promoting environmentally responsible products and solutions to support Mongolia’s transition to greener future.

Mongolia's foreign trade turnover grew by 13.4 percent year-on-year in the first 11 months of 2024, reaching 25.2 billion U.S. dollars, according to official data by the country's National Statistics Office on Tuesday.

The Asian nation recorded a trade surplus, with exports exceeding imports by approximately 4.0 billion dollars, the data showed.

This growth was primarily driven by a significant increase in the export of mining products, which accounted for over 90 percent of Mongolia's total exports during the January-November period.

During the period, Mongolia engaged in trade with 158 economies globally.

On December 16, for approximately 20 minutes commencing at 10:00 a.m., Ms. IKUINA Akiko, Parliamentary Vice-Minister for Foreign Affairs received a courtesy call from Mr. Khishgee Nyambaatar, Governor of the Capital City and Mayor of Ulaanbaatar, Mongolia. The overview is as follows.

At the outset, Parliamentary Vice-Minister Ikuina welcomed Mayor Nyambaatar’s visit to Japan and extended her congratulations on the 100th anniversary of the renaming of the capital city of Mongolia to “Ulaanbaatar.” Parliamentary Vice-Minister Ikuina emphasized that Japan will never forget the heart-warming assistance provided by the City of Ulaanbaatar to the victims of the 2024 Noto Peninsula Earthquake and stated that Japan will continue to make whole of government efforts towards the recovery and reconstruction of the affected areas.

Parliamentary Vice-Minister Ikuina welcomed the multifaceted progress in the cooperation between Japan and Mongolia under the “Special Strategic Partnership for Peace and Prosperity,” and stated that Japan seeks to continue to steadily promote cooperation based on the “Action Plan” in accordance with the “Joint Statement” issued by the two leaders of both countries in 2022. In addition, while mentioning the 50th anniversary of the exchange of diplomatic notes on cultural exchange between the two countries this year, Parliamentary Vice-Minister Ikuina expressed that she hopes that Mayor Nyambaatar would make efforts to further promote people-to-people exchanges between the two countries over the next 50 years.

In response, Mayor Nyambaatar expressed his gratitude for the assistance Japan had been providing over the years towards the various issues facing Ulaanbaatar, and introduced related efforts made by the City of Ulaanbaatar.

Gas pioneer TMK Energy has taken a major step toward commercial gas production at its mammoth Gurvantes project in Mongolia, signing a binding memorandum of understanding (MoU) with German-backed power generation provider Jens Energie LLC to import a gas fired power plant from Germany in early 2025 at no cost to TMK.

The agreement paves the way for TMK to become Mongolia’s first coal seam gas-to-power project, with electricity set to flow from TMK’s mammoth Gurvantes XXXV coal seam gas project to the local grid as soon as next year.

A gas-fired power plant in Germany similar to the one to be imported to begin production at TMK’s Gurvantes coal seam gas project in Mongolia.

A gas-fired power plant in Germany similar to the one to be imported to begin production at TMK’s Gurvantes coal seam gas project in Mongolia.

Under the MoU, Jens will pick up the cost of install a gas-fired power plant imported from Germany to TMK’s six-well Lucky Fox pilot production site. The generator is expected to be operational by April next year, converting pilot gas output into electricity for local customers.

In turn, TMK must deliver a minimum 5000 cubic metres of gas per day – or about 0.2 terra joules - by the end of financial year.

Under the terms of the agreement, TMK must deliver a minimum 5000 cubic metres of gas per day – or about 0.2 terra joules - by the end of financial year.

‘We will be working collaboratively with Jens over the coming months to put in place the pieces to allow the first coal seam gas production in Mongolia...’

TMK CEO Dougal Ferguson

When production milestones are met, Jens will purchase up to 15,000 cubic metres of gas per day for an initial two-year period, with the option to extend the contract for an additional two years.

Jens will handle all the necessary regulatory approvals to generate and supply electricity into Mongolia’s local grid. The arrangement means TMK can focus on its gas production while also generating early-stage revenue to offset any additional pilot well installation costs.

Jens Energie says it has successfully operated gas-fired power plants in Europe for more than 15 years and believes the quid pro quo agreement is a major milestone in establishing gas-fired power generation for the growing Mongolian market.

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TMK CEO Dougal Ferguson said: “We will be working collaboratively with Jens over the coming months to put in place the pieces to allow the first coal seam gas production in Mongolia to be beneficially used for power generation, commencing the pathway to energy independence utilising Mongolia’s vast coal seam gas resources.”

TMK says the milestone MoU further solidifies it as a frontrunner to deliver critical energy solutions for Mongolia as it transitions away from coal towards cleaner, gas-based power sources.

Located in the South Gobi desert, a region known for its mammoth coal deposits, the Gurvantes XXXV project holds a 1.2 trillion cubic feet (Tcf) contingent resource, with further upside potential from its 5.3Tcf prospective resource.

The company’s recent progress comes just 12 months after it acquired 100 per cent ownership of the Gurvantes project, which is seriously close to northern China’s gas pipelines and has mammoth development potential.

It offers TMK a platform to become a key player serving the broader Asian energy landscape.

Management maintains it can achieve the commercial gas rates required from the very thick coal seams at its Lucky Fox pilot area, which run up to 6om. It believes sustainable revenue and further positive reports are yet to come as TMK continues to accelerate its transformation from explorer to producer.

The rapid installation of the gas-fired power plant marks a critical next step in TMK’s path to production, offering a tangible revenue stream for more pilot wells while demonstrating the project’s broader commercial viability to organically grow.

The savings in Tugrug, the national currency of Mongolia, reached MNT 20.7 trillion as of the end of October 2024, an increase of MNT 94 billion (0.5 percent.) Compared to the same period of 2023, the total amount of Tugrug savings increased by 5.4 trillion, or 34.9 percent.

Of the total Tugrug savings, MNT 17.9 trillion (86.4 percent) is made by individuals, whereas MNT 2.8 trillion (13.6 percent) by enterprises.

Savings in foreign currency reached MNT 4.5 trillion, an increase of 5.3 billion (0.1 percent) compared to the previous month. However, savings in foreign policy decreased by an equivalent of MNT 445.1 billion (9.1 percent,) compared to the same period last year, according to the National Statistics Office of Mongolia.

With the improvement of the quality and standards of aeronautic services, the number of air passengers traveling through Mongolia in 2024 has approached 16 thousand, reflecting a 6.5 percent increase compared to the previous year.

In 2024, Mongolia marked an unprecedented accomplishment in its history of the aviation sector. Particularly, as of November 2024, the Chinggis Khaan International Airport has, for the first time in its history, welcomed over two million passengers, while Mongolia’s Flag Carrier, MIAT Airlines, transported one million passengers within a single year. With 47 Agreements on Aviation Relations established with 46 countries worldwide, Mongolia provided direct flights to 155 destinations this year.

In 2023, the total freight transport in the road and transportation sector reached its historical high of 107.4 million tons. As of December 8, 2024, the total freight transported by all modes of transport amounted to 122.2 million tons, representing a 20.4 percent increase compared to the same period of the previous year. Among this, the volume of exported freight reached 87.2 million tons, surpassing the total amount for the previous year’s end and achieving a 22.2 percent increase compared to the same period last year, making another historical record. Furthermore, the volumes of freight transported by roads and rails have also exceeded those of previous years, setting new historic benchmarks. Specifically, in 2023, 71.2 million tons of freight were transported by road, and 36.1 million tons by railway.

A growing wave of protectionism is sweeping across 72 nations, as governments scramble to secure access to critical minerals essential for strategic industries, new research by global risk intelligence firm Verisk Maplecroft shows.

The study reveals a surge in state intervention not seen in Western democracies since the early 20th century, driven by concerns over national security and supply chain stability.

Verisk Maplecroft’s Resource Nationalism Index (RNI), which measures protectionism and interventionism in the energy and mining space across 198 countries, highlights a sharp increase in protectionist policies over the past five years. The trend is most pronounced in Europe and North America, where geopolitical tensions and a fractured global landscape are reshaping economic practices.

Europe has been at the forefront of this shift, with major economies like Germany, Spain, the UK, and Poland showing significant declines in the RNI rankings. Germany, in particular, has plummeted 122 places in the index, reflecting its aggressive policies to reduce dependence on external energy and mineral sources.

Berlin has implemented short-term measures, including the seizure of Russian energy assets after the Ukraine invasion, alongside long-term strategies such as subsidies for domestic manufacturing and partnerships with resource-rich nations like Canada and Australia. These efforts aim to secure access to essential minerals like lithium and cobalt while bolstering domestic processing capabilities.

The European Union is also ramping up its initiatives through frameworks like the European Raw Materials Alliance (ERMA) and the Critical Raw Materials Act, which focus on sustainable mining, recycling, and reducing reliance on non-European sources.

North American allies

In North America, policies to safeguard critical minerals have led to tightening trade and investment rules. The US has enacted the CHIPS and Science Act and the Inflation Reduction Act to boost domestic production while restricting Chinese involvement in key sectors. Initiatives like the Mineral Security Partnership have strengthened collaboration with allied nations, further entrenching trade barriers with geopolitical rivals.

Canada, meanwhile, has adopted a multi-faceted approach through its Critical Minerals Strategy and the Investment Canada Act. These measures not only limit foreign investments, particularly from China, but also encourage sustainable resource development under strict environmental and labour standards.

In 2022, Ottawa ordered three Chinese investors to sell their stakes in a trio of Canadian lithium firms. This was part of a wider push to block Chinese firms from delving further into Canada’s critical minerals sector.

In June, Ottawa stepped in to block a potential deal that would have seen Australia’s Vital Metals selling its stockpiled rare earth material, which it mines in Canada, to China’s Shenghe Resources Holding Co. Prime Minister Justin Trudeau’s administration offered a higher sum for Vital to sell its rare earths to the Saskatchewan Research Council.

Canada has also partnered with nations like Australia and the US to strengthen critical mineral supply chains through agreements that prioritize resource access.

The country is also part of the Five Eyes Alliance, which includes the US, Britain, Australia and New Zealand, which aim to tackle the price manipulation of critical metals.

The US has created several groups, such as the Committee on Foreign Investment (CFIUS), to increase scrutiny on foreign acquisitions of critical mineral assets. Early this month, the US also introduced restrictions on exporting semiconductors and critical materials to China, limiting Beijing’s ability to develop advanced technologies. The Asian giant responded by banning exports of gallium, germanium, antimony, and other key high-tech materials with potential military applications to the US.

Fragmented global economic

The rise in resource nationalism, described by Verisk Maplecroft as “strategic,” underscores the challenges posed by a fragmented global economic order. Jimena Blanco, the firm’s chief analyst, noted that supply chain security has become a top priority for states, opening doors for incentive programs while also narrowing opportunities to “friendly” jurisdictions.

The report warns of increased trade tensions as nations like China and the US engage in tit-for-tat measures.

The study also identifies the top 10 highest-risk jurisdictions, including long-standing resource nationalists like Venezuela, Russia, and Zimbabwe. These countries continue to use policies such as nationalization and resource rent hikes to exert control over their mineral wealth.

As resource nationalism becomes more sophisticated, Western economies appear poised to deploy a mix of trade barriers, investment controls, and sustainability standards to maintain strategic autonomy.

For investors, the evolving policies signal a complex landscape with potential risks throughout the global supply chain.

“Western nations will likely increase localized supply chains and stricter trade policies, adding layers of complexity for global businesses,” Blanco said.

The race for critical minerals, a cornerstone of green energy and advanced technology, seems destined to deepen economic divides worldwide.