Mongolia is the latest country to join the European Bank for Reconstruction and Development’s (EBRD) Green Economy Financing Facility (GEFF). The GEFF Mongolia will support the country’s transition to a greener economy, facilitate better access to green technologies for private companies and local households, and promote higher energy efficiency standards. This is particularly important in a country known for its extreme weather conditions and vulnerability to the negative impacts of climate change.
The US$ 137 million GEFF Mongolia, launched by the EBRD and the Green Climate Fund (GCF) in the country’s capital, Ulaanbaatar, today, will encourage individuals and businesses to invest in green and innovative solutions that promote the efficient use of water, sustainable land management and greater resource efficiency. For now, the funds will be available to borrowers across the country through partner financial institutions Khan Bank and XacBank. Other local financial intermediaries are expected to join the programme in future.
The GEFF, supported by concessional co-financing provided by the GCF and technical assistance funded by the GCF and the government of Japan, will also offer financing to vendors and producers of high-performing green goods and equipment, including those covered by the online Green Technology Selector, available on the GEFF Mongolia website.
With the Bank’s support, XacBank will also develop and implement a transition plan aimed at aligning its business practices with the goals of the Paris Agreement.
The GEFF Mongolia will also contribute to the growth of the country’s green economy, make green technologies more affordable and create new job opportunities. It will facilitate investment in climate change mitigation and adaptation projects, advance the circular economy, and promote the decarbonisation and competitiveness of Mongolia.
The new facility builds on the US$ 25 million Mongolian Sustainable Energy Financing Facility (MonSEFF) that was in place from 2014 to 2019, which helped dozens of local businesses reduce their energy consumption through targeted investments in new equipment and energy efficiency measures. These projects collectively generated more than 255,000 MWh of energy savings and helped reduce CO2 emissions by more than 94,000 tonnes annually.
Launched in 2006, the Bank’s GEFF is being now implemented in 29 economies. Over €6.3 billion has been provided to more than 230,000 clients under the facility to date.
As of June 2023, the EBRD has invested almost € 2.25 billion in Mongolia’s economy through 136 projects.