Mongolia becomes the newest participant in the European Bank for Reconstruction and Development's (EBRD) Green Economy Financing Facility (GEFF), a crucial step towards a sustainable future.

The GEFF Mongolia aims to support the country's transition to a greener economy by facilitating access to green technologies for businesses and households and promoting higher energy efficiency standards.

This move is particularly significant for Mongolia, a nation prone to extreme weather conditions and climate change's adverse effects.

The US$137 million GEFF Mongolia, launched in Ulaanbaatar in collaboration with the Green Climate Fund (GCF), encourages individuals and companies to invest in innovative green solutions.

These solutions promote the efficient use of water, sustainable land management, and resource efficiency. Initially, the funds will be available through partner financial institutions, Khan Bank and XacBank, with plans to include other local financial intermediaries in the future.

Supported by concessional co-financing from the GCF and technical assistance funded by the GCF and the government of Japan, the GEFF Mongolia will also provide financing to vendors and producers of high-performing green goods and equipment. The online Green Technology Selector, available on the GEFF Mongolia website, will help identify eligible products.

XacBank, with the EBRD's support, will develop and implement a transition plan to align its business practices with the Paris Agreement's goals.

The GEFF Mongolia is expected to drive the growth of the country's green economy by making green technologies more accessible and creating new job opportunities. It will facilitate investments in climate change mitigation and adaptation projects, promote the circular economy, and enhance Mongolia's decarbonisation and competitiveness.

This facility builds on the success of the Mongolian Sustainable Energy Financing Facility (MonSEFF), which operated from 2014 to 2019, helping local businesses reduce their energy consumption and CO2 emissions through targeted investments.

Since its inception in 2006, the Bank's GEFF has been implemented in 29 economies, providing over €6.3 billion to more than 230,000 clients and driving sustainable development worldwide.

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Source: EBRD