Strengthening green finance capacity in Mongolia through the GCF Readiness program

Ulaanbaatar, 28 June – The Government of Mongolia, the Global Green Growth Institute (GGGI), the Green Climate Fund (GCF) and the Mongolian Sustainable Finance Association conducted a two-day capacity building workshop on accessing green finance today in Ulaanbaatar. The workshop, hosted by the partner organizations under the Readiness program in Mongolia, highlighted the opportunities and challenges to accessing green finance and development of green project pipelines.

The first day of the workshop provided an opportunity to learn and discuss from China’s experience on promoting green finance. Mr. Shouqing Zhu, fellow researcher at the Center for Finance and Development of Tsinghua University; Mrs. Chuluunkhuu Baatar, program manager at the Environment and Climate Fund (the National Designated Authority, or NDA, to the GCF) and Mrs. Margaret Kim, GGGI’s Head of GCF Liaison made presentations giving insights on climate finance in Mongolia and GGGI’s cooperation with GCF to support countries to access the Fund.

Representatives of the private sector in Mongolia had opportunities to improve their knowledge and understanding of green product finance solutions, building project pipelines, preparing project proposals, developing a Monitoring, Reporting and Verification (MRV) framework and relevant case studies and examples.

Facilitated by Mr. Tuvshinkhuu Samdan, an independent auditor of building energy, the second day of the workshop focused on the planning energy efficient buildings and design basis, calculation methods for energy consumption and thermal insulation of building structures and relevant “hands-on” localized examples. Around 40 participants from private sector project developers, design and planning companies and executers in the construction sector and local authorities attended the informative and interactive sessions.

GGGI, in collaboration with the Government of Mongolia and the Mongolian Sustainable Finance Association, started the implementation of the GCF readiness activities dedicated to the establishment of the Mongolia Green Finance Corporation – a National Green Financing Vehicle in September 2017. The purpose of the activities is to strengthen local green financing, institutional arrangement and capacity and mobilize the private sector.

The expected outcomes from the workshop include improving the understanding and skills of green inclusive investment opportunities, green inclusive finance and its various dimensions, integration of the green dimension within risk-return analysis of clients or projects and enhancing practical knowledge of an energy audit exercise for the housing sector and industries. The two-day workshop in Ulaanbaatar strengthened this partnership and paved the way for the development of green project pipeline, financing and a whole public and private partnership approach to accessing climate finance.