Mongolia and the European Investment Bank (EIB) have agreed to deepen their partnership by making greater use of the bank’s financing, technical expertise, and international experience to support Mongolia’s energy transition, regional infrastructure development, and capital market growth.

The matter was discussed during a meeting between Deputy Finance Minister Khulan Bat-Erdene and EIB Vice-President Gelsomina Vigliotti during the deputy minister’s visit to the Grand Duchy of Luxembourg. The two sides exchanged views on the effectiveness of ongoing and future projects, financing arrangements, and broader areas of cooperation.

Since beginning operations in Mongolia in 2014, the European Investment Bank has been an important partner in promoting sustainable development, climate change adaptation, and regional infrastructure development. According to the Ministry of Finance, cooperation reached a new level in 2025 when the Government of Mongolia, the European Union, and the EIB signed a memorandum of understanding providing for up to EUR 1 billion in financing to support Mongolia’s clean energy transition.

In connection with Mongolia’s hosting of the 17th session of the Conference of the Parties to the United Nations Convention to Combat Desertification (COP17) in Ulaanbaatar, the parties also discussed cooperation on combating desertification and land degradation, protecting and restoring forests, and promoting sustainable land management. The EIB expressed its intention to participate in COP17 and support Mongolia’s goals related to climate action, sustainable development, and green finance.

The discussions also covered the possibility of utilizing EIB loans and grant financing under the Green Regional Development Investment Program for Aimags and Soums to accelerate infrastructure projects, including local roads, water supply systems, and wastewater networks.

In addition, the two sides addressed the development of Mongolia’s green capital market, including green bonds, sustainable finance instruments, attracting long-term sources of financing, and creating a more balanced financial structure that is less dependent on the banking sector. They also discussed opportunities to attract international institutional investors to Mongolia’s green bond market through the Global Green Bond Initiative, in which the EIB participates as an investor.

The meeting further focused on Mongolia’s energy transition, investments in renewable energy, expansion of transmission networks, increased private-sector participation, and financing mechanisms to support the country’s gradual shift from a coal-based energy system to a green energy system.

Published Date:2026-06-18