National Roadmap for Sustainable Financing approved

During the Green Financing Regional Forum on March 30, Mongolia adopted the National Roadmap for Sustainable Financing.

The Office of President of Mongolia reported that within the framework of the roadmap, basic conditions and a favorable policy environment will be created for the development of sustainable financing and that budgets and financing will be orientated to green development. The document also aims to develop green banking and financial institutes by increasing green financing capital flow, as well as improve their environmental, social, governance and climate risk management and provide support for transparency and open reporting.

When realized, the roadmap with six main chapters and 25 sub-activities is expected to raise the banking sector’s green loan portfolio to 10 percent of the total loan portfolio by 2030 and make at least 5 percent of the total loan portfolio of the non-banking financial institutes become green lending.

During the forum, participants agreed that it will be possible to provide at least 15 percent of the financing needed for implementing Mongolia’s Nationally Determined Contribution with sources from banks and financial institutes.

Mongol Bank announced that it will play a leading role in the implementation of the National Roadmap for Sustainable Financing policy document.

The bank plans to take the following measures in the future:

• To study and resolve issues for creating a favorable environment and conditions through swap agreements and other instruments in order to attract green resources and increase the amount of loans for green projects.

• To collaborate with international and domestic organizations to improve public awareness of climate change and its impact on financial markets, society and economy, as well as green and sustainable finance and its impact. It will also build professional capacity and develop research and analysis in these areas.

• To establish a monitoring and evaluation system to monitor the implementation of sustainable financing by financial institutions.

• To develop and conduct testing and analysis methods for the impact of climate change and related risks on the financial sector on a regular basis.