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 • December 15, 2017
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News • November 23, 2017
On November 23, under the theme of Green Energy – Energizing A Sustainable World, GGGI and Hanwha Q CELLS, a global solar power company, jointly organized a forum to discuss how fast the world can thrive on 100% renewable energy. Participants from Australia, China, Germany, the Republic of Korea, Norway and the UK gathered in Seoul to take […]
News • August 2, 2018
On July 25 2018, the Fiji Commerce and Employers Federation hosted the Global Employers Climate Action Forum in Suva, Fiji. The event drew over 160 participants representing the private sector, governments, and other organizations from across the Pacific region, and focused on the effects of climate change on the private sector, supporting resilient and low-carbon […]
News • March 20, 2018
Stakeholders’ consultation meeting on Mongolia’s Monitoring, Reporting and Vertification (MRV) System
The GGGI Mongolia team hosted a half-day stakeholders’ consultation meeting on Mongolia’s Monitoring, Reporting and Verification (MRV) system on March 20 in Ulaanbaatar, Mongolia. In March 2017, GGGI launched a MRV program to support the MRV framework establishment and capacity building in 14 countries based on consultations with its member and partner countries. Mongolia was identified […]