The United Nations Development Programme (UNDP), in partnership with the Ministry of Energy, convened a high-level workshop on “Introducing Regulatory Sandbox for Energy Sector Regulation in Mongolia” to explore adaptive and innovation-friendly regulatory approaches that can support Mongolia’s energy transition and sustainable infrastructure development. A regulatory sandbox is a framework that allows innovative solutions to be tested in a controlled, time-bound environment under regulatory oversight. It enables evidence-based learning while ensuring appropriate safeguards for consumers and the public interest. 

Organized under the Sustainable Infrastructure Programme in Asia (SIPA) in partnership with the Organisation for Economic Co-operation and Development (OECD) and supported by the Government of Germany through the International Climate Initiative (IKI), the workshop brought together representatives from government institutions, regulators, development partners, financial institutions, investors, local authorities, academia, and the private sector.

The workshop discussed the opportunities, legal foundations, and implementation pathways for establishing a Regulatory Sandbox mechanism and presented the findings of a SIPA-supported study reviewing international experience and Mongolia’s regulatory environment, and proposed possible approaches for piloting innovative energy solutions. 

Mr. Naidalaa Badrakh, Minister of Energy of Mongolia, emphasized: “A Regulatory Sandbox mechanism can become an important tool for testing innovative technologies and developing a more flexible, consumer-centered, and inclusive energy system for Mongolia. The Government of Mongolia, particularly the Ministry of Energy, remains committed to advancing energy sector reforms and creating an enabling environment for clean energy innovation and investment”.

Panel discussions highlighted that Mongolia’s energy transition requires both investment and adaptive and forward-looking regulatory approaches. Participants also stressed that sandbox approaches should deliver tangible benefits for communities, including cleaner heating, improved air quality, stronger energy reliability, and greater access, particularly at the local level.

Speaker at a lectern at a conference stage with two flags and an audience.
Mr. Udo Weber, Head of Cooperation at the German Embassy in Mongolia noted: “German Government is pleased to support Mongolia’s efforts to advance practical and forward-looking approaches for clean energy transition. Achieving this will require strong cooperation between government institutions, regulators, development partners, and the private sector”.

Ms. Matilda Dimovska, UNDP Resident Representative in Mongolia, noted: “For UNDP, supporting adaptive and forward-looking regulatory approaches is part of our broader partnership with Mongolia on advancing a just and green transition. A sandbox provides a practical way to test innovative energy solutions under real-world conditions while supporting evidence-based and gradual policy reform”.

Photograph of a man in a suit speaking at a UN podium during a workshop.
Mr. William Tompson, Head of Eurasia Division at the OECD, highlighted: “OECD is proud to help Mongolia explore regulatory experimentation in support of energy sector reform. International experience shows that Regulatory Sandboxes, in particular, are one of the main approaches through which governments foster a conducive regulatory environment for innovation by introducing controlled flexibility, allowing collaborative testing of new products, services and business models. As such, Regulatory Sandboxes can be an interesting tool for Mongolia to advance its energy sector reform and adjust its framework conditions for promoting cleaner and innovative energy systems”. 

The workshop identified next steps, including legal analysis, development of the technical framework, capacity-building, stakeholder consultations, and identification of pilot projects to support Mongolia’s energy transition and sustainable development objectives.

Conference room full of attendees facing a speaker at a podium with a large screen and flags.
About SIPA 

The Sustainable Infrastructure Programme in Asia (SIPA) supports countries in strengthening policy and regulatory frameworks for sustainable, climate-resilient, and low-emission infrastructure development. In Mongolia, SIPA supports efforts to advance sustainable infrastructure governance, climate-aligned planning, and clean energy transition pathways. SIPA is co-funded by the Government of the Federal Republic of Germany. 

About UNDP 

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and the planet. 

Published Date:2026-05-20