At a Glance
|Start Date||Q2 2017|
|Funding Source||National Finance Vehicle|
|Approved Budget||USD 50 000 000|
The Mongolian Green Credit Fund (MGCF), “Private sector initiative for a public purpose” type fund, will help the Government of Mongolia to achieve the targets set in the National Green Development Policy and its declared Nationally Determined Contributions. The goals for the MGCF program are to i) provide medium and long-term credit resources, ii) provide lower cost credit resources so as to lower interest rate to the end-borrowers, iii) offer a risk sharing facility to participating banks, and iv) support project pipeline development. Ultimately, the MGCF will also contribute to wider access to ﬁnance for segments of the economy that are under addressed, resulting in a healthier and sustainable environment, the creation of employment opportunities and a wider diversiﬁcation of the economy.
Building on 2015-2016 work
The MBA along with other key stakeholders such as Ministry of Environment and Tourism (MET), IFC and FMO, worked to introduce green and inclusive lending practices and strategies in the Mongolian banking sector that resulted in the launch of the Mongolian Sustainable Finance (ToC) Principles and Sector guidelines (mining, manufacturing, construction, agriculture) in January 2015.
On November 27, 2015, MBA in cooperation with XAC bank, MET, the Bank of Mongolia (BoM), UB City Mayor’s office, the National Chamber of Commerce and Industry (MNCCI), IFC, FMO, UNEP-FI and PAGE jointly organized the 3rd Mongolian Sustainable Finance Forum 2015 in Ulaanbaatar. Discussions during the Forum focused on the implementation progress of the Mongolian Sustainable Finance (ToC) Principles and also aimed to initiate discussions on (1) how the private and public sector could collaborate on developing a green financing framework to support green growth in Mongolia and to invest in clean, green and environmentally friendly projects, and (2) to discuss a collaborative approach to enhance the implementation of sustainable finance and green economy in Mongolia in the coming years. As a result of Sustainable Forum, GGGI had an initial discussion with IFC to support MBA to develop the Green Credit Fund.
GGGI supported to developed a detailed MGCF Business Plan proposing the fund’s legal status and operational structure. Pipeline project development are ongoing i) energy efficiency targeting 15 Designated Entities identified under the Law on Energy Conservation ii) selected sub-sector assessment and pipeline project development under GCF Readiness program.
Readiness and Preparatory Program was approved by Green Climate Fund to work on market demand assessment and pipeline project development of (i) energy efficiency heating and small-scale renewable energy in Ger district, (ii) green and affordable housing and (iii) urban sanitation and waste management from September 2017 for 12months. GGGI keeps working on this readiness activities with a view to incorporate the MGCF and start full operations by Q3 2018.
As for fund establishment/launching, Memorandum of Understanding on MGCF establishment was signed among Ministry of Finance (MoF), MET, MBA and GGGI at the Mongolian Sustainable Finance Forum in September 2017. Consequently, the first MGCF steering committee was held in November 2017 among MoF, MET, MBA, GCF and GGGI to finalize a fund structure and government initial contribution. In December 2017, XAC Bank agreed to become to Accredited Entity to request funding to GCF. In Q1 2018, GGGI leads to complete Funding Proposal to submit to GCF via XAC bank. Final launching of the Fund is expected in Q3 2018.
News • July 17, 2018
Media Advisory Announcing Director-General visit to Uganda Kampala, July 17, 2018 Dr. Frank Rijsberman, Director-General of the Global Green Growth Institute (GGGI) will be on a two-day working visit to Uganda from August 2-3 to strengthen bilateral relations between the Government of Uganda and the GGGI. During his visit, the Director General will reaffirm GGGI’s commitment […]
News • September 2, 2018
Rwanda population increasing rate in 2018 is 2.40% according to UN estimation report 2018, the population is estimated at 12.50 million in area of 26,338 km², there are still a multitude of challenges relating to poverty reduction, as almost 80% of the rural population is still subsistence farmers with an average landholding estimated at less than […]
News • May 22, 2018
Bataan, Philippines – May 22, 2018 – Building on its current initiative under the GGGI-National and Economic and Development Authority (NEDA) project on “Mainstreaming Green Growth in Development Planning,” GGGI Director-General Dr. Frank Rijsberman met with Bataan Provincial Governor Albert Garcia and other provincial officers along with key stakeholders such as the Authority of the […]
News • September 25, 2018
BULAWAYO, Zimbabwe , Sep 25 2018 (IPS) – Young people – a growing population segment in developing countries – are intrepid innovators and entrepreneurs who can help solve pressing climate and development challenges today. Believing in the potential of the youth, the Seoul-based Global Green Growth Initiative (GGGI), in partnership with Student Energy and Youth […]