Mongolia will host the 17th Conference of the Parties to the United Nations Convention to Combat Desertification (COP17) in 2026. In anticipation of the Conference, the Business Council of Mongolia and the Ministry of Environment and Climate Change of Mongolia jointly organized the “Post-COP: Business and Investment Opportunities” event on January 30, 2024.

The event brought together representatives from the government, private sector, and international organizations to discuss climate policy, green financing, and carbon market development, as well as to exchange views on Mongolia’s goals on climate change and cooperation with the international community. In addition, scholars, researchers, and experts who have worked or are currently working in environment and climate change attended the discussions to get acquainted with national and international trends and situations.

By hosting COP17, Mongolia will demonstrate its leadership in mitigating global challenges caused by climate change, particularly desertification and the transition to renewable energy, noted B. Javkhlan, Advisor to the President of Mongolia for Project Coordination and Civil Society Policy, during the panel discussion she chaired. She also provided an international perspective on climate investment trends following COP29. Ms. Javkhlan emphasized the need for Mongolia to foster dialogue with its international partners to enhance climate investment, create green jobs, and build a sustainable future.

Ambassador of Australia to Mongolia Katie Smith, Ambassador of the European Union to Mongolia Ina Marciulionyte, Ambassador of the Italian Republic to Mongolia Piccarreta Giovanna, and Director of the Preparatory Office for COP17 UNCCD under the Ministry of Foreign Affairs of Mongolia Ambassador-at-Large N. Chimguundari took part in the event and shared their insights on green finance, sustainability initiatives and cross-border cooperation.

Desertification, environmental degradation, and climate change are not just environmental concerns but cross-sectoral challenges that impact all nations, not just a single country. Given the critical need for collective action, countries are working together to find solutions, address these challenges, and adapt to the changing environment.

For Mongolia, the most pressing environmental issues include climate change, soil degradation, yellow dust storms, and desertification. Protecting the environment and accelerating green development have become national priorities. In particular, under the Sustainable Development Goals, Mongolia is obliged to fulfill its commitments by 2030.

Moreover, nationally, one of the key solutions to improve the lives of citizens, businesses, and residents is to protect the environment and intensify green development.

The 29th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change was held in Baku, Azerbaijan, in November 2024, and world leaders agreed to increase climate finance. Addressing this conference, President of Mongolia Khurelsukh Ukhnaa highlighted Mongolia’s climate finance and business environment reforms.

Mongolia has committed to reducing total greenhouse gas emissions to 22.7 percent by 2030 and minimizing the gap between greenhouse gas emissions and removals by 2050. “To successfully fulfill its commitments under the Paris Agreement, Mongolia needs financing equal to approximately 50 percent of its GDP. In this regard, to enhance financing and investment in renewable energy, green agriculture, and forestry, our country is undertaking a comprehensive reform aimed at improving the legal and business environment,” emphasized President Khurelsukh.

Developed countries have agreed to increase their climate finance commitment to developing countries from the previous goal of USD 100 billion annually to a new target of USD 300 billion annually by 2035, effectively tripling the previous amount.

"A notable amount of climate finance can be brought into Mongolia if the country moves towards a green economy with proper plans, policies, and strategies," emphasized Minister of Environment and Climate Change of Mongolia Odontuya Saldan in her interview after the event. During the discussions, the Minister noted the exigent need for increased investment and strengthened public sector capacity to combat climate change.

In Mongolia, the energy, agriculture, and construction sectors are considered to be the biggest contributors to greenhouse gas emissions and environmental degradation. Therefore, it is essential to promptly transition these sectors into green sectors with low environmental impact.

Mongolia has adopted a sustainable finance roadmap, with the financial sector committing to increasing green loans to 10 percent of the total loan portfolio. Additionally, international best practices for boosting environmental sector financing are being introduced in Mongolia. One such initiative is the Project Finance for Permanency, launched in collaboration with The Nature Conservancy and supported by the President of Mongolia. So far, over USD 70 million in grants have been secured from international investors, with the potential to raise an additional USD 100 million by 2030, stated Davaadalai Batsuuri, Economic Policy Advisor to the President of Mongolia, in an interview with MONTSAME Mongolian National News Agency.